By
Mayowa Adebajo
March 1st, 2024
The new exchange will also have an incentive model to reward customers for signing on its platform.
In an official announcement on Monday, July 2, BTCC – one of China’s top three cryptocurrency exchanges earlier has relaunched its operations again along with the plan to release its own native digital currency token ahead in the future. Last year, BTCC announced its plans to shut down its exchange platform after China introduced a blanket ban on the functioning of crypto exchanges or any other crypto-related activities in the country.
As a part of the relaunch, BTCC’s revamped cryptocurrency exchange will support crypto-to-fiat and crypto-only trading pairs for digital currencies like Bitcoin, Litecoin, Ethreum and Bitcoin Cash. In a word with CCN, Vice President BTCC Exchange Aaron Choi said that the new BTCC exchange would be introducing a new incentive model thereby rewarding its clients with certain points for signing up on their platform as well as completing ID verification and trading. These points can be later redeemed as BTCC tokens which can be traded on its platform.
While commenting on the launch of the newly revamped exchange, Choi said:
“A soft launch has already been made and we decided to go ahead with the BTCC points system that will be fully convertible to BTCC tokens. We wanted to give something back to the community which has supported us through a rather difficult period. Initially, we started trading with just Bitcoin/USD pairs and eventually added Ethereum, Litecoin and Bitcoin Cash. We will be adding further coins according to what our customers tell us although these will probably be Top 10 anyway”.
Several cryptocurrency exchanges in China are now using a new revenue model called “trans-fee mining” which has emerged to be very popular these days. Under this new revenue model, users will be reimbursed their transaction fees in the form of the platform’s own native tokens. BTCC is planning for a similar revenue model wherein its customers will be rewarded with the native tokens on its platform.
However, in a word with CoinDesk, Choi said that BTCC will be charging ZERO trading fees during the first three months of the relaunch, Thus is revenue model is different from that of other exchanges as it is a complete giveaway scheme. But Choi also admits that in the future, trans-fee mining could be an option which can be introduced on the BTCC in the future. Choi said:
“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 exchange has not unveiled any timeline with the release of its native tokens only saying that it will be launched in a “couple of months”. The exchange is likely to have a limit on the total supply of the tokens. Additionally, the exchange has mentioned that it is inclined towards adding more number of digital tokens and also open to listing other ERC20-based tokens.