BTCC Revamps Crypto Exchange with Plan to Issue Own Tokens
BTCC, one of the leading trading platforms in China, has announced that it’s ready to launch its crypto exchange business with a plan to issue own tokens.
BTCC said on Monday its revamped platform is now up and running with crypto-to-crypto trading options and new trading pairs including ethereum, litecoin, bitcoin, and bitcoin cash against the US dollar.
As a part of its new plan, the company is introducing a system to reward users with points when they sign up, complete ID verification, and trade on the exchange. Furthermore, these points can be converted to BTCC’s own tokens, which can be traded on the platform.
However, there’s no concrete timeline for BTCC’s token issuance. According to the company, it will launch the token “in a couple of months”. Additionally, the company plans to add more cryptocurrencies and says it is open to listing more ERC-2o tokens.
BTCC’s new way of rewarding its users comes at a time when other Chinese crypto exchanges are exploring a new revenue model called “trans-fee mining”. The system reimburses traders’ transaction fees with the platform’s own tokens – a system that appears somewhat similar to what BTCC is introducing, except that users can only redeem its tokens at a later stage.
Commenting on that, Aaron Choi, BTCC’s vice president of international business, said that since the revamped platform will have zero trading fees for the first 3 months after the relaunch, its model resembles a giveaway more than mining at the beginning. He added:
“The (trans-fee mining) model draws a lot of attention at the moment. … But there’s still a business risk so our management is reviewing this model, how it can be sustained in a long term. So giving away points for trading that can be converted into our token in the future is what we think makes sense for now.”
The company has diversified its business to 3 main areas: the crypto exchange, Mobi wallet, and its mining pool.
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