Mega-pump Viacoin

User-centric exchanges are a new phenomenon in the cryptocurrency segment

User-centric exchanges are a new phenomenon in the cryptocurrency segment
User-centric exchanges are a new phenomenon in the cryptocurrency segment

User-centric exchanges are a new phenomenon in the cryptocurrency segment

“Community” is a word that is closely associated with cryptocurrency projects, including bitcoin. Relatively recently, two exchanges have appeared in the cryptocurrency segment, which have decided to adopt a model based on the interests of this community. Contrary to generally accepted principles, these exchanges look to their users for advice on adding new cryptocurrencies, encourage them to participate in trading activities, and demonstrate a willingness to share some of the income with them. To this day, this model demonstrates its effectiveness..

Unicorns, startups worth over $ 1 billion, are almost as rare as the mythical creatures they are named after. The unicorns category includes Uber, Airbnb and Xiaomi, for example. In 2017, another “unicorn” was born, which the ordinary people outside the cryptocurrency segment have hardly heard of. We are talking about the Binance exchange, which was recently dubbed “the fastest and most profitable unicorn in history.” It took Binance 143 days to pave its way to the top of the list of the largest exchanges, where it is firmly established. $ 5.5 billion passed through this trading platform in the last 24 hours.

However, this number does not give a complete representation. Binance, like Kucoin, has achieved success largely because it prefers to listen to traders rather than dictate terms to them. The traditional models used by well-known platforms like Bitfinex, Bittrex, or Poloniex, which add cryptocurrencies at their own discretion, are gradually becoming a thing of the past. Of course, they have reasons not to disclose their listing plans in advance, but, as practice shows, sometimes community advice is simply necessary..

Until the summer of 2017, Bittrex remained the exchange of choice among traders interested in altcoins. Over time, Bittrex simply refused to expand the list of digital currencies available for trading, and since its inception, Bitcoin Gold has listed only Enigma and Unikoin Gold..

It should be noted that Binance entered the market in a very timely manner, just as Bittrex announced a moratorium on adding new coins. Each month, the Binance community selects from a range of proposed cryptocurrencies the one that will ultimately be listed on the exchange..

Rather than blocking out their users, the new generation of exchanges is showing a willingness to listen to them. The inability to reach out to the support service and the lack of response to the needs of the community are perhaps the two most common motives that can be traced in discussions related to most of the cryptocurrency exchanges that took place in the market several years ago..

In contrast, Binance and Kucoin are committed to rewarding their users, including giving them discounts and even sharing income..

At the time of universal tokenization, the release of their own tokens by cryptocurrency exchanges was a matter of time. Binance and Kucoin have successfully used these tokens in their business models. So, the Binance exchange token, traded under the ticker BNB, has grown by 8,000% since 2017 and at the time of publication is worth about $ 9.

KuCoin Exchange Token, Known as KuCoin Shares or KCS, Shows Comparable Performance.

Many tokens entering the market after the ICO follow the following path: Etherdelta > Kucoin > Binance; each new exchange adds liquidity and often helps prices rise even higher.

At the same time, against the backdrop of startups such as Cardano, which do not have even minimum viable products and at the same time reach a capitalization of several billion dollars, Binance and Kucoin stand out noticeably: their valuation is based on today’s achievements, and not on ghostly promises..

Binance CEO Zhao Changpeng has shown that he is not afraid to compete with such giants as Coinbase and is ready to present a worthy alternative. Binance has already started burning its own tokens: the entire exchange plans to destroy 100 million BNB, thus aiming to increase the value of the tokens remaining on the market.

In addition, in the future, Binance intends to expand the functionality of its trading platform by moving to a decentralized hybrid model and implementing support for margin trading. A similar hybrid model is followed by the Bitfinex exchange, which recently opened a division of Ethfinex, thereby demonstrating that a variety of trading platforms have the right to exist in the field of cryptocurrencies..

Similar articles

Similar articles