Republicată de Platon For what is not the first time, the cryptocurrency industry is preparing for the funeral of yet another centralized crypto exchange. The founder of China-based FCoin exchange, Zhang Jian, had revealed detailed information about their demise in a lung post on Monday, with the highlights including that the exchange currently has a bitcoin shortfall of 7, to 13, and thus cannot handle all withdrawal request by customers.
Having adopted the controversial trans-fee mining model in MayFCoin acquired a lot of users within the first two months after launch, only to start losing it all immediately after that, until the unpleasant announcement this week. What is Trans-Fee Mining?
Trans-Fee Mining is the method whereby cryptocurrency exchanges issue their own tokens as a reward for trading on their platform. The tokens provide an easy means of reducing the cost of trading since they can be redeemed to cover the cost of commission or held until a later day.
With FCoin the team had created the FCoin token to reward traders.
Strategia rateu when trading volumes dropped drastically and the project was unable to catch up with their promise to pay investors. Add Chart here Jian admitted in his version of the story that wrong decisions on his strategii de tranzacționare plătite cu schimb de cripte, the prolonged bear market, and lack of ability to scale contributed to the steep decline both in the value of their BTC reserve and the project token, FCoin decline in late The exchange was allegedly buying back FCoin token from the traders and paying the said dividend from the remaining BTC supply even though the business was no longer profitable.
Rotunjind While FCoin exchange was brave to champion an innovation — the trans-fee mining — it is apparent that the startup lacked the capacity to scale, and has now paid dearly with both its capital and that of investors. Sadly, the prospects of FCoin being the latest crypto exchange funeral for the crypto space would still be in doubt as the industry continues to on the path to maturity. Nu ratați niciodată știrile noastre de criptă zilnice, poveștile, sfaturile și analiza prețurilor.
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