Two new cryptocurrency exchanges are now trading more than Binance - showing a significantly larger 24-hour trading volume than the world’s leading exchange.
Coinbene, a Singapore-based exchange recorded over $2bn of trading volume in the last 24 hours, while Hong Kong-based Bit-Z posted a trading volume of over $1bn - both exceeding Binance’s 24hr trading volume of just over $800m, according to CoinMarketCap.
Interesingly, CoinGecko reports the two new exchanges' trading volumes as even higher - at $5.3bn and $2.2bn respectively.
Adopting a new revenue model known as “trans-fee mining,” the new platforms have rapidly shot to the top of the exchange rankings.
Trans-fee mining sees exchanges moving beyond traditional fee-taking models - instead issuing their own tokens which are paid to users in return for their normal transaction fees in crypto.
Accusations abound that the model is in essence an ICO, as Binance CEO Zhao Changpeng remarked on his Weibo last week:
"You pay transaction fees to the platform with BTC and ETH. Then the platform pays '100%' back to you with its token. Isn't it just buying platform token with BTC and ETH? How is this different from an ICO?"
And, questioning the long-term view for such platforms, Zhao pointed to the potential for manipulation:
"If an exchange doesn't get revenue from transaction fees and solely profits from the price of its token. How would it survive without manipulating the token price? Are you sure you want to play against a price manipulator? The same price manipulator who controls the trading platform?"
While ICOs are under enormous scrutiny in China - with new scams being exposed every week, it remains to be seen what attitude the Chinese authorities will take to the new exchanges - particularly given the enormous sums flowing through the platforms.