In the early days of cryptology cryptocurrency exchanges could be counted on the fingers. Today coinmarketcap has 400 different cryptocurrency exchanges, and this figure is much lower than the real, because there are many regional or just small exchanges, whose turnover is too small to have them in the global listing.
With the increase in the number of players on the market, the competition between platforms is rapidly gaining momentum. Young exchanges have to compete with such bands as Bittrex and Poloniex, constantly inventing new mechanisms and approaches. Opened just a few months ago the Singapore exchange ABCC is the suitable illustration of this process.
ABCC is a rather young site, which began operation in April 2018. The founder of the exchange Calvin Cheng is an entrepreneur and former member of the Singaporean Parliament. Today market offers users 56 traded pairs, and if you believe their own statistics, the daily turnover of the site is $30 million According to the exchange, a security listed on her assets is achieved through regular security audits, microservices framework (distributed architecture) and two-factor authentication.
The interest of traders, the stock exchange tried to warm up with a system of competitions. But the most effective means of attracting traders turned out to be a policy of zero transactional commissions, which operated in the first months of the platform’s work. Over time, the stock exchange gave up zero commissions, integrating the Commission into an economic model of the new project, which started in early July. We are talking about tokenization trading activity, which will be discussed in detail.
Tokens ABCC (AT) will be used in internal processes of the exchange. Users will be able to purchase with their help, other digital assets, to pay transactions and to access the paid services of the platform.
On the first day of the campaign ABCC has risen to 8th place in the ranking Coinhills (trading volume) remains in the top ten. At first glance the token ABCC (AT) looks like a loyalty program to attract new customers and reward old ones.
Earn tokens as you can with mining and trading on the site. Try to understand what is mining tokens ABCC (AT).
Mining is carried out AT a rather unusual according to the mechanism of consensus — Trade-to-Mine (ToM). In practice, ToM means the distribution of tokens generated among users of the platform in proportion to the volume of their trades for the period of creating the next block. The more trading volume for 6 hours, the greater the reward at at.
New units will appear every 6 hours. Every 120 days the number of produced tokens will be reduced by half, it resembles the model of bitcoin mining. According to the developers, this scarce model will serve as additional protection for the price of a token.
In the mining process will be released only 40% of tokens. Another 10% will be distributed in the form of airdrop between existing users of the exchange in proportion to the history of their trades. The remaining 50%, the stock market will leave themselves, distributing them between the team, investors and development expenditure of the platform. In return, the ABCC will be apportioned 80% of their daily income (transaction fees) to the holders of the ABCC tokens.
Therefore, the ABCC plans to create a trading ecosystem, where participants will be able to share in the profits of the exchanges which it receives from them.
The economic rationale
The exchange has determined the initial price of the ABCC token of $0.4. According to representatives of the exchange, this price is backed by a limited release of the token (210 million) and volumes of financial transactions on the stock exchange.
Tokens can be traded in a few weeks after the start of mining (mining was officially launched on 9 July). For security purposes, holders of token representatives of the exchange decided not to commence trading before it will be released more than 5% of the planned issue volume.
In case of unforeseen problems there is a mechanism of guaranteed compensation. According to a press release received by the editors Forklog, the exchange will buy the tokens back if in the first week of trading, the token will fall in value below initial cost.
Within the mining platform has launched a referral program that allows members to earn by inviting friends to join the ecosystem. Users will receive a bonus of 20% and 10% by a private mining facility in the result of trading activity of friends and friends of friends, respectively. Themselves invited users will receive a bonus of 10% when mining at the site.
Plans for the future
We can assume that at the moment the involvement of users is for ABCC priority. The development of the platform in the press releases is given less attention, and connection of certain important functions are not reported.
According to the Whitepaper, the exchange plans to gradually expand the functionality of as obtaining the appropriate licenses and permits. Among the instruments — trading services that support the Fiat, trading with leverage, futures, options, and investment portfolios.
To learn news about the development of the site and ask questions about her work in Russian-speaking telegram-group site.
With the development of the market of crypto currency exchange trying more and more different tactics to attract and retain customers. On the one hand, mining as the basis of ecosystems and the value of the product — time-tested formula. On the other — the effectiveness of such models in relation to the exchanges remains unproven.
Experiment ABCC will assess how this model is integrated into the stock market. In the case of its successful implementatie this mechanism will be able to take over many regional and small commercial sites wishing to increase its turnover.