CoinEx has introduced “Trade-driven mining” and dividend distribution model for its ERC20-based native token CoinEx Token (CET). This has the CoinEx trading volume skyrocketing and replacing Binance to claim the number 1 spot as the top crypto exchange as per 24-hour trading volume.
“Trade-driven mining” drives CoinEx up
Launched in December 2017, CoinEx is a Hong Kong-headquartered cryptocurrency exchange that has shot to the top spot and replaced the popular and usually the top crypto exchange, Binance. All thanks to its “Trans-free mining” model.
A controversial model, in “Trans-free mining”, a cryptocurrency exchange issues its own token with the purpose to reward it for trading. Apart from incentivizing the trading, it further provides a means to reduce the trading cost.
This model has been previously used by Chinese exchanges FCoin, Coinbene, and Bit-Z. These leading exchanges Hong Kong-based Bit-Z and Singapore-based Coinbene had shot up in trading volume to about $1.5 billion in 24 hours after introducing this model on their platform. First launched by FCoin, this model has been criticized a lot but traders seem to love it. Now, as expected, after the release of “Trade-driven mining” and dividend distribution model, the trading volume of CoinEx skyrocketed from $5 million to over a billion USD.
According to the Coinmarketcap, at the time of writing, the 24-hour trading volume of CoinEx is $1.48 billion. In comparison to this number, Binance has been registering the daily trading volume of $1.26 billion.
CoinEx and CET
CoinEx is a subsidiary of the BCH mining pool ViaBTC that has its offices in Hong Kong, Singapore, and Shenzhen. As per the official announcement on the website of the exchange, it has released the “Use CET as transaction fees” feature and “Trade-driven mining” for CET’s better allocation.
CoinEx Token (CET) is an ERC20 based native token of the platform which is “an official value-added services and privileges scheme based”. With its supply fixed at 10 billion, the exchange is also planning to launch it on the public chain of CoinEx in future. CET is now available on the exchange for trading against the BCH, BTC, ETH and USDT pairs. As for the “Trade-driven mining”, it allows the CET holders to share 80% of the exchange’s daily transaction fee income.
It also shares its upgraded CET repurchase plan, “Bought back and ‘burned’ with 20% of its MONTHLY profit at the end of each month”. The exchange has already repurchased and burned the first batch yesterday.
What are your views on the “Trade-driven mining” model introduced by CoinEx and surpassing Binance as the top crypto exchange by 24 hour trade volume? Share your thoughts with us!