Crypto Exchange Update: Bitfinex, Binance, Coinbase, Gemini, and OKEx

Siamak Masnavi

The "Crypto Exchange Update" covers the latest news from some of the most popular digital asset exchanges. This particular article focuses on Bitfinex, Binance, Coinbase, Gemini, and OKEx.

Bitfinex

On September 24, Bitfinex announced the relaunch of its initial exchange offering (IEO) platform Tokinex; the new name is "Bitfinex Token Sales" (BTS). The first token to be offered on BTS is K.im (KIM). KIM will be a Liquid Token on the Liquid Network. 

The KIM token sale is set to start at 11:00 UTC on 28 October 2019 and end at 11:00 UTC on 22 October 2019.

Also, Bitfinex announced earlier today (September 26) that holders of its UNUS SED LEO token are now able to get a discount of up to 5% on peer-to-peer (P2P) lending fees.

Binance

On September 23, Binance said that phase six of the Binance Lending platform, which was launched on August 28, would go live at 06:00 UTC on September 25.

Binance introduced on September 24 a new way to buy crypto with fiat (debit or credit card). Via an integration with UK-based payment processing company Koinal, Binance users (in supported countries) now have another way to buy Bitcoin (BTC), Ether (ETH), XRP, Bitcoin Cash (BCH), and Litecoin (LTC) with a regular debit/credit card (both Mastercard and Visa). 

Also, on this day, Binance.US launched its trading services, making the following pairs available at 13:00 UTC:

  • USD Pairs: BTC/USD, ETH/USD, XRP/USD, BCH/USD, LTC/USD, BNB/USD, and USDT/USD. 
  • USDT Pairs: BTC/USDT, ETH/USDT, XRP/USDT, BCH/USDT, LTC/USDT, and BNB/USDT.

The following day, the exchange added three new trading pairs: REN/USDT, RVN/USDT and HC/USDT.

Coinbase

Late yesterday, Coinbase announced that it was making both Chainlink (LINK) and Stellar Lumen (XLM) available to its users who are residents of New York State. 

Gemini

On September 25, Gemini revealed that its crypto custody solution, Gemini Custody, now supports 18 digital assets:

OKEx

On September 23, OKEx told crypto news outlet The Block that it is preparing to launch Tether (USDT) margin futures in October.

And earlier today (September 26), the exchange launched a referral program that allows you to earn USDT rewards for inviting your friends to join OKEx.

Featured Image Credit: Photo via Pixabay.com

Weekly Newsletter

Trans-Fee Mining Crypto Exchange 'FCoin' Insolvent After Mistakenly Being Too Generous

One of the first cryptocurrency exchanges to adopt the controversial trans-fee mining (TFM) model, which has been called a “disguised ICO” has paused trading and withdrawals over a shortage of crypto worth up to $130 million.

According to a statement published by FCoin’s founder Zhang Jian, a former Huobi CTO, the exchange is now unable to process withdrawals as its reserves are down by between 7,000 to 13,000 bitcoin, worth over $130 million at press time, over an issue that’s “a little too complicated to be explained in a single sentence.”

Zhang’s statement details the cryptocurrency exchange wasn’t hacked, nor is it pulling an exit scam on its users. He detailed that an internal system error gave users more mining rewards than they should have received, noting the error wasn’t detected for a long period of time.

The transaction-fee mining model, which saw FCoin’s trading volume surpass $5 billion per 24 hours numerous times, sees the cryptocurrency exchange incentivize trading via its own token, FT. FCoin reimbursed users for transaction fees paid in BTC or ETH with FTs until 51% of the coin’s supply was distributed, and redistributed 80% of the BTC and ETH it collected to those holding FT tokens.

The controversial model drew criticism and saw Zhang defend it, claiming it was a misunderstood invention. At the time, he said:

If you look back at history, all new things were not recognized at the beginning. Many were believed to be fraud. Jack Ma was recognized as a fraud when he first promoted the internet in China.

Various cryptocurrency exchanges started adopting the TFM model shortly after, with research showing these platforms had unusually thin order books and low traffic taking into account the trading volumes they had.

According to Zhang, the errors in FCoin’s system gave away too many tokens in mining rewards from mid-2018 to mid-2019, when a complete back-end auditing system was implemented. As throughout 2019 the price of FT kept on dropping, Zhang and his team reportedly used their own funds to buy back tokens and drive up demand, a decision he claims was an error.

This, as it gave users a chance to sell their FT tokens and withdraw as much as possible from their accounts, while FCoin bought up tokens that kept on losing value. Zhang’s announcement came shortly after FCoin suspended its platform over a risk-control issue.

Zhang is now reportedly manually processing users’ withdrawal requests sent via email. The founder of the exchange claimed he will “switch tracks” to start again, and noted he hopes he can use the profits made from new ventures to “compensate everyone for their losses.”

Featured image via Unsplash.