Two Asia-based exchanges have joined Binance and OKex in the race for dominance of crypto trading volume. These two exchanges shot up the ranks when they introduced their “transaction fee mining” model.
The two exchanges, called CoinBene and Bit-Z, have introduced a new incentive to trade on their platform by fully refunding all transaction fees with their own cryptocurrencies.
CoinBene, an exchange based in Singapore, now ranks first in 24-hour trading volume according to CoinMarketCap. At press time the exchange has observed over $2.1 billion in trading volume in the last 24 hours. This comes after CoinBene announced that they would refund all transaction fees with their native “Coni” currency.
The additional instruction about Coni event??? pic.twitter.com/4Vd1a7JlBs
— CoinBene满币网 (@coinbene) June 22, 2018
on January 2018, we aim to reach the top 10 exchange in the world. we live through our ups and downs in the past six months , and never give up and now we are the champion in the world!!! we will continue to move forward with gratitude to our users, honest & humble to market . pic.twitter.com/fGVeYq7xEs
— CoinBene满币网 (@coinbene) June 26, 2018
Bit-Z, and exchange based in Hong Kong, offers a similar incentive, offering to refund 100% of all transaction fees in their native “BZ” cryptocurrency. Bit-Z currently ranks second on CoinMarketCap with over $1.1 billion in 24-hour trading volume.
According to Bit-Z’s whitepaper, this model had a limit of 600 million BZ, and would decrease the refunded transaction fees by 3% every 10 million BZ refunded. It seems that Bit-Z’s model was not ready for this kind of growth, as there are already only 526 million left.
You can keep track of how many BZ remain here using their official tracker. Refunds of fees have already dipped down to 79% since 10 million BZ has been refunded 7 times.
While it is nice to see new methods of dealing with transaction fees creating competition in the market, it is important to remember that Binance was down for a significant period yesterday, thus a large reason for these other exchanges seeing increased volume and overtaking Binance in the ranks. Also, internal trading back and forth can also give a false appearance of volume, which is something to take into consideration when looking at such an unexpected boom in volume. CoinMarketCap could also be miscalculating the volume, as miscalculations have been frequent on the platform causing ample confusion from time to time.
Hopefully, these exchanges will continue to sustain their volume and cause others to start considering their own transaction fee models and begin adjusting them to hold on to customers. This could be a splendid example of how competition can be beneficial to consumers.