Singapore Based Cryptocurrency Exchange

Singapore based cryptocurrency exchange

Issuer of an initial coin offering made to return funds from S'pore-based investors

Singapore, SINGAPORE  – While the United States may undoubtedly be the world’s largest market for initial coin offerings (ICOs), dominating the amount of capital raised through the innovative fund raising mechanism through the issuance of digital tokens, when it comes to cryptocurrency exchanges, Asia dominates.

Cryptocurrency exchanges are a key part of the digital asset ecosystem, providing a platform for investors to trade all manner of cryptocurrencies with each other.

Singapore based cryptocurrency exchange

Almost all of the top ten cryptocurrency exchanges by market cap are from Asia or started by Asians and then relocated to other jurisdictions in a move that is commonly referred to as regulatory arbitrage. Among those cryptocurrency exchanges, Binance has been dominant.

Founded initially in Hong Kong, the exchange has since moved to Malta in search of even more favorable regulatory conditions which will help fuel the expansion of their business.

Singapore based cryptocurrency exchange

But yesterday, after the introduction of a new “transaction fee mining” model on its cryptocurrency exchanges, Singapore-based CoinBene and Hong Kong-based Bit-Z roared ahead of Binance to claim the top two spots on CoinMarketCap’s listing of the top cryptocurrency exchanges by volume. Transaction fee mining allows users to pay for transaction fees but in return they receive the cryptocurrency exchange’s native tokens.

Singapore based cryptocurrency exchange

Traders betting that the cryptocurrency exchange’s native tokens will eventually increase in value relative to other digital tokens poured into the two cryptocurrency exchanges using the transaction fee model. CoinBene, now ranked first, had a trading volume of over US$2.1 billion over a 24-hour period, while Bit-Z surged to second place on the back of US$1.5 billion worth of trades.

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Binance fell three spots to claim fourth place with only around US$629 million worth of trading. Binance was also hamstrung by its long overdue update to its infrastructure and the freezing of new user registrations.

According to Coinbene, the new transaction fee mining model was introduced on June 23 and it only three days was sufficient to shoot the cryptocurrency exchange to the very top of the leaderboard.

Singapore based cryptocurrency exchange

Coinbene users will not receive 100 percent of their trading fees back in Coni, the exchange’s native cryptocurrency. In other words, Coinbene is letting traders trade for free and if the Coni token appreciates, traders are actually getting paid for their trading activity.

Coinbene wasted no time celebrating its meteoric rise to the top spot on CoinMarketCap’s ranking of the top cryptocurrency exchanges by trading volume.

Second place Bit-Z’s transaction fee mining model is slightly different from Coinbene’s and users are refunded for their transaction fees in the “form of equivalent BZ,” the exchange’s native token, only if users have completed level three verification, a higher level of know your customer requirements.

Bit-Z, which introduced the new transaction fee model barely two days ago saw  a huge surge in the mining of its native token through its transaction fee mining model and although the company’s target was for trading mining volume to shoot past 60 million, it completely destroyed that target and roared to 27 billion trading mining transactions.

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That surge in transaction mining volume was sufficient to propel Bit-Z to the second place in a 24-hour period in terms of market volume on CoinMarketCap.

As competition among cryptocurrency exchanges heats up, there is growing pressure to attract and retain users as well as to increase trading volume.

Incumbent cryptocurrency exchanges such as Huobi and Binance are also diversifying their businesses to other blockchain-related areas, to decrease their reliance on cryptocurrency trading activity for their income.

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And while Bit-Z and Coinbene may be the superstars of cryptocurrency exchanges for now, any student of cryptocurrencies will tell you that can change as quickly as it takes to mine the next block.

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