Binance Trading Reported Lower Than Coinbene and Bit-Z
Recently it has been noticed that two new crypto exchanges are trading more than Binance, which is the world’s leading exchange with respect to 24-hour trading volume.
Coinbene is a Singapore-based exchange which recorded over $2bn of trading volume in the last 24 hours, while another Hong Kong-based exchange Bit-Z posted a trading volume of over $1bn, both were exceeding Binance with respect to the 24hr trading volume of just over $800m, according to CoinMarketCap.
According to reports from CoinGecko the two new exchanges’ trading volumes as even higher – at $5.3bn and $2.2bn respectively.11
Using the new revenue model which is known as “trans-fee mining”, these new platforms are rapidly rising to the top of the exchange rankings.
Trans-fee mining sees exchanges moving beyond traditional fee-taking models – instead issuing their own tokens which are paid to users in return for their normal transaction fees in crypto.
Beginning in May with a new Chinese exchange – F-Coin – which shares 80% of its crypto fee profits with its FT token holders – the model has drawn criticism from media and industry figures.
Accusations abound that the model is, in essence, an ICO, as Binance CEO Zhao Changpeng remarked on his Weibo last week.
Zhao Changpeng said,
“You pay transaction fees to the platform with BTC and ETH. Then the platform pays ‘100%’ back to you with its token. Isn’t it just buying platform token with BTC and ETH? How is this different from an ICO?”
And, questioning the long-term view of such platforms, Zhao pointed to the potential for manipulation.
Zhao Changpeng further added,
“If an exchange doesn’t get revenue from transaction fees and solely profits from the price of its token. How would it survive without manipulating the token price? Are you sure you want to play against a price manipulator? The same price manipulator who controls the trading platform?”
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