Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Exchange tokens benefit as centralized exchanges battle with DeFi platforms

Fresh institutional and retail investor inflows into the cryptocurrency market have led to bull market conditions for many top tokens from blue-chips like Bitcoin (BTC) and Ether (ETH) to more recently established DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked sub-sector of the market but they have been performing exceptionally well in 2021 as increases in trading volumes results in a larger pool of fees to collect when the exchange’s native token is used for settlement. Native exchange tokens are also typically used as the base pair for funding new listings and token buybacks.

Here are three of the top-performing exchange tokens in 2021 that continue to see upside potential as new investors flood into the market.

Similar to the experience of CryptoKitty users in 2017, the decentralized finance community has discovered that the main drawback of increased usage of the Ethereum network is high gas fees and long transaction times.

As a result, centralized exchanges and their associated native tokens have seen renewed interest as new features like staking, yield farming and collateralization allow investors to profit from holding their investments. These new offerings also allow investors to participate in DeFi-like offerings without worrying about impermanent loss and they also receive access to the latest coin listings.

Binance Coin (BNB) recently experienced a price breakout to a new high of $349.13 on Feb.19 as the top exchange by volume evolves both its centralized and decentralized exchange capabilities alongside further upgrades to the Binance Smart Chain.

Several DeFi-related projects, including Venus (VNS) and Linear Finance (LINA) launched on the BSC in recent weeks which utilizes the BNB token to pay transaction fees on the network.

Binance also offers a continually expanding list of “investment products” that allow users to lend their tokens to the exchange pools in return for varying degrees of yield opportunities depending on lock-up periods and token demand.

Popular coins are quickly added to the growing list of tokens with options or futures trading capabilities, offering something for both devoted community members as well as pessimists who would rather take their chance at shorting newly listed assets.

Trading volume dominance and the benefits of having the first-mover advantage point to further upside potential for the Binance ecosystem and BNB.

Binance’s steady expansion and its active project incubator and Binance Smart Chain are designed to challenge Ethereum’s dominance in the sector, thus there remains a strong possibility that BNB could see an extension of recent gains.

The traditional finance and cryptocurrency markets are slowly beginning to merge and developing products for all types of traders. In 2020, derivatives exchanges also increased in popularity and their trading volumes steadily rose to new highs on a weekly basis.

Following the U.S. government crackdown on controversial derivatives exchange BitMEX, the door was opened for a newer, more community focused option to fill the gap.

FTX Token (FTT) is the exchange token for the FTX cryptocurrency exchange which got its start in the summer of 2019. For much of that first year, FTT traded below $2 with an average trading volume of $2 million as the exchange worked on establishing itself and attracting new users.

The exchange began to see an uptick in activity in 2020 which coincided with an increase in trading volume for FTT as well as its price.

As the platform expanded, additional functionality was added to the token which now includes fee rebates, staking and a ‘Buy & Burn’ mechanism that helps decrease FTT’s circulating supply to increase token value.

Since Dec.11 when FTT was trading at $4.12, a surge in buying volume which reached a peak of $270 million on Feb.19 has propelled FTT to a new record high of $35.01 as the exchange is rapidly becoming the go-to derivatives exchange for the cryptocurrency community.

KuCoin Shares (KCS) has been a late bloomer in this bull market, maintaining a relatively flat token value until the beginning of February when a sudden uptick in trading volume helped elevate KCS price from $1.19 on Feb.2 to a recent high of $3.99 on Feb.19.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for KCS on Feb. 18 when it reached a high of 66, less than 24-hours before the price breakout.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

A scroll through the project’s Twitter feed shows that on Feb.4 the biggest announcement coming out of the exchange was the listing of the popular blockchain-based video streaming platform Theta, which had previously been difficult to obtain for U.S. residents.

KuCoin also offers a growing list of tokens available for derivatives trading along with various ways to earn through staking or providing liquidity, with fees generated by the platform distributed to token holders who keep their KCS staked on the exchange.

DeFi may be dominating the conversation in the cryptocurrency sector right now, but major issues including gas fees remain a barrier to widespread adoption.

While the roll out of layer two solutions may offer some relief to this problem, concerns about liquidity across separate blockchains continue to pose significant barriers to a smooth, low-cost trading experience.

Many who are chasing the DeFi hype fail to realize that popular token listings and lower trading fees have led to a resurgence in the use of centralized exchanges.

This translates into a larger user base that conducts more transactions, leading to an increase in trading volumes and healthy price appreciation for underlying exchange tokens like BNB, FTT and KCS.

Centralized exchanges still capture the majority of trading volume and this does not appear to be changing anytime soon. While decentralized exchanges like Uniswap and SushiSwap are growing in prominence and beginning to eat into the market share of centralized exchanges, they still comprise only a small portion of total trading volume seen in the cryptocurrency market.

The battle between exchanges is continuing to heat up and as long as this is the case, the increased inflow to exchange tokens could lead to future upside.

Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.

Source: ethereumcryptocurrency.com

Author: by Ray Schuetz


Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020 – Exchanges Bitcoin News

Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020 – Exchanges Bitcoin News

February 20, 2021February 20, 2021

Study- Top-Tier Cryptocurrency Exchanges Increased Their Market Share by 13% Since October 2020

A recent study unveiled that top-tier cryptocurrency exchanges increased their market share since October 2020, in the context of lower-risk exchanges. The bitcoin bull market fueled that both retail and professional traders utilized such risk, data shows.

Per information from crypto market data provider cryptocompare.com, top-tier crypto exchange gained 13% market share from October 2020 to January 2021. In fact, it increased from 61% ($347 billion) to 74% ($1.41 trillion).

But the study — which covered over 160 exchanges — clarified the following about the market share’s proportion:

Based on the most recent ranking update, the proportion of Top-Tier exchange volume in Jan 2021 would be 88% to reflect the increase in the number of Top Tier exchanges meeting the minimum threshold – 68 in July 2020 vs 76 in current update.

Cryptocompare highlighted that exchange’s standards “improved” as regulatory requirements toughened to meet anti-money laundering (AML) compliance. Also, they praised that crypto exchanges increased their transparency in terms of data provision.

The research backs up its statement by showing that 44% of the surveyed exchanges “offer the ability to query full historical trade data via a public API endpoint.”

In terms of security, the crypto market data provider pointed out “fewer hacks” in the last year:

20% of exchanges state that they hold more than 95% of crypto in cold wallets (vs 15% in July 2020). 1% of exchanges have been hacked in the last year (vs 4% as of July 2020). 18% of exchanges use a third party custody provider to store user assets, up from 12% in July 2020 and 9% in our Q4 2019 Benchmark.

Funds’ security was also another topic discussed within the study. According to Cryptocompare, 9% of crypto exchanges formally offer some form of insurance. Moreover, 37% of the surveyed exchanges hold a legal license to run the business.

What do you think about the study’s findings? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Source: bitcoin-core-news.com

Author: by admin


Wisebitcoin Talks Customer Service in Crypto Exchanges

Wisebitcoin Talks Customer Service in Crypto Exchanges

The blockchain and cryptocurrency area is notorious for its unwelcoming person expertise. Regardless of the present bull run, most customers who’re simply now delving into cryptocurrency functions, companies, and exchanges are normally delay by the impersonal character of all of it.

Whereas this is likely to be a part of the decentralization ethos that characterizes the event of those applied sciences, most customers do need somebody to name.

Skilled merchants aren’t the exception to this rule. For this reason a brand new decentralized crypto trade is providing a drastic enchancment on this regard.

Wisebitcoin is understood for offering 24/7 assist, amongst many different vital options. The trade has been garnering the eye {of professional} merchants searching for a quick but dependable buying and selling expertise. Finance Magnates sat down with Wisebitcoin’s Senior Adviser JW Cho to be taught extra.

I hope for the long run improvement of the market. The variety of distinctive crypto pockets addresses is rising and greater than 34 million wallets are presently in use.

It seems that extra merchants are coming into secondary markets than ever earlier than and skilled merchants will resort to leverage as a technique to revenue from volatility.

We’re a decentralized trade that introduces three predominant options for skilled merchants. First comes asset custody and clearing expertise.

What future awaits cryptocurrencies?
GOODBAD

Then, we rely on a specifically designed distributed transaction processing expertise that goes hand in hand with the trade’s excessive efficiency.

Final however not least is diversified liquidity. Alternate companions can mix orders, share liquidity, and entry the depth of many well-known exchanges on the Wisebitcoin platform.

We make it easy for traders to make profitable funding choices with out having to develop into cryptocurrency customers. Skilled merchants can come to Wisebitcoin to purchase futures in any crypto asset whereas benefiting from unparalleled buyer assist, deep liquidity, and excessive safety requirements.

In 2018, we made headlines for being the primary crypto trade to supply 1:20 leverage. This made our person base develop exponentially since margin buying and selling was very new on the time. Most exchanges solely provided it on a restricted foundation.

Since then, Wisebitcoin has built-in a cloud-based platform that improves the trade’s performance. It additionally connects us to the cloud’s 12 million customers across the globe. Clearly, that is nice for liquidity.

We amplify the upside potential by permitting better leverage. With reference to derivatives buying and selling Additionally, perpetual swaps allow merchants to purchase or promote the worth of an underlying asset whereas sustaining distinctive advantages in the case of derivatives buying and selling.

These advantages aren’t any expiry dates, by no means holding the asset, and swaps that observe the underlying value making them straightforward to brief.

The platform integrates the advantages of spot and futures buying and selling by providing a perpetual buying and selling venue for USDT-Swap and Coin-Swap within the futures trade.

Wisebitcoin even permits skilled merchants to make use of excessive leverage with out worrying about futures contract expiration dates.

Not each trade can present the options that skilled cryptocurrency merchants want. On Wisebitcoin there are greater than 100 buying and selling pairs, and over 30 cryptocurrencies deposits and withdrawals.

We offer spot buying and selling on over 50 cryptocurrencies together with BTC, USDT, and ETH. We additionally provide coin swaps within the futures trade and perpetual buying and selling for USDT swaps.

One other factor to notice is that each one withdrawals on Wisebitcoin are computerized.

Regardless of being a decentralized trade, utilizing Wisebitcoin is rather like utilizing the extra standard but much less safe centralized exchanges. The person interface is intuitive and simple.

Skilled merchants are additionally supported by a multicultural staff of finance professionals who can be found across the clock for the best degree of customer support. Every dealer is aided by a devoted gross sales supervisor by means of reside chat or telephone name.

Wisebitcoin’s attraction comes from combining this with usability, deep liquidity, and sturdy safety.

Wisebitcoin provides associates commissions at greater than double the speed of different exchanges; $2.10 to be exact. We additionally present instruments like web site administration, commissions administration, CRM, promoting, and white label options that assist associates develop their enterprise.

VIP Companions are associates who obtain a sure quantity degree to earn 30 % of income. Nonetheless, new associates who signed up after February third are actually mechanically upgraded to the VIP Associate Stage and obtain double the buying and selling commissions, no matter quantity.

We’re trying into broadening our associates program in addition to the pool of secure cash. In the long term, we’re assured that the standard of our companies will make us one of the crucial used crypto exchanges on the earth.

We’re additionally within the midst of vital collaborations, resembling our current partnership with FSV Mainz and Land-FX UK. Only in the near past, we welcomed two new vital advisors to our staff.

One is crypto trade professional Lee Sanwgook, who was beforehand CFO at Huobi Korea and CEO at BlueHelix Korea.

The opposite is his colleague, Andrew Chae, who served as Huobi Korea’s CSO and Bluehelix Korea’s Co-CEO. So, there are thrilling issues arising.

Source: thefutureraise.com

Author: admin


Bill Gates Neutral on Bitcoin but Says Cryptocurrency Is an Innovation the World Can Do Without – Featured Bitcoin News

Bill Gates Neutral on Bitcoin but Says Cryptocurrency Is an Innovation the World Can Do Without – Featured Bitcoin News

Microsoft founder Bill Gates is no longer a bitcoin bear. He has now taken a neutral stance on bitcoin as an investment. However, as an innovation, he says that cryptocurrency is one that the world would be better off without because it allows for certain criminal activities.

Bill Gates spoke about bitcoin and cryptocurrency in two separate interviews Thursday. One was with CNBC where he was asked what he thinks about bitcoin “in the context of climate change seeing how bitcoin takes an enormous amount of energy to digitally mine.” Gates simply replied:

I don’t own bitcoin. I’m not short bitcoin. So, I’ve taken a neutral view.

“Bitcoin can go up and down just based on the mania or whatever the views are, and I don’t have a way of predicting how that will progress,” Gates continued.

The Microsoft founder added: “I do think moving money into a more digital form and getting transaction costs down, that’s something the Gates Foundation does in developing countries. But there, we do it so you can reverse the transactions so we have total visibility of who’s doing what. It’s not about tax avoidance or illegal activities.”

Gates has been no fan of bitcoin. In an interview with CNBC in 2018, he, Berkshire Hathaway CEO Warren Buffett, and vice chairman Charlie Munger talked about bitcoin being worthless.

“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Gates remarked. “I would short it if there was an easy way to do it.” BTC was trading at around $9,300 on that day. Since then, the price of the cryptocurrency has risen almost 511% to $56,805 at the time of writing.

Another interview published Thursday where Gates talked about cryptocurrency was with The Wall Street Journal. Responding to the question, “What’s the one tech innovation the world would be better off without?” he said:

The way cryptocurrency works today allows for certain criminal activities. It’d be good to get rid of that.

However, Gates quickly added, “I probably should have said bioweapons. That’s a really bad thing. We shouldn’t have technology for that.”

According to Forbes’ real-time list of billionaires, Gates ranks fourth with a net worth of $124 billion. The first on the list is Amazon CEO Jeff Bezos with $189 billion in net worth, followed by Tesla and Spacex CEO Elon Musk with $182 billion, and then Bernard Arnault with $159 billion.

Meanwhile, Microsoft has been granted a patent for a “cryptocurrency system using body activity data.” This crypto-mining system leverages human activities, including brain waves and body heat, when performing online tasks such as using search engines, chatbots, and reading ads.

What do you think about Bill Gates’ remarks regarding bitcoin and cryptocurrencies? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: news.bitcoin.com

Author: Featured

by
Kevin Helms


Exchange tokens benefit as centralized exchanges battle with DeFi platforms

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