Crypto.com Launches Cryptocurrency Exchange With Support for 9 Cryptoassets

Cryptocurrency financial services provider Crypto.com has announced the launch of its own cryptocurrency exchange, with support for 9 cryptoassets.

According to a press release, the exchange will be accessible through Crypto.com’s trading API, app, and web interface. The exchange will initially support nine cryptoasset, including BTC, ETH, LTC, XLM, USDT, MCO, and its native Crypto.com Coin (CRO).

The Crypto.com Coin is set to power the cryptocurrency exchange. The firm will have 3 core pairs on the exchange, trading listed cryptoasset against BTC, CRO, and USDt. CRO token holders will have various benefits, including discounts on trading fees, priority token allocation in discounted sale events through its fundraising platform “The Syndicate” and more.

The token can also be staked for a 20% yield, the press release notes. Kris Marszalek, co-founder and CEO of Crypto.com, said:

Launching an exchange is the natural next step that allows us to complete our ecosystem play. I strongly believe that only companies that built entire ecosystems will thrive during the next bull market.

Crypto.com’s ecosystem already included a mobile wallet that can be connected to a Visa card, a cryptocurrency lending service, a Venmo-like service for payments, and a staking service, as well as the above-mentioned fundraising platform.

The new cryptocurrency exchange promises its users “deep and global liquidity,” as well as “very competitive trading fees.” The trading platform will serve Crypto.com’s one million users, which the platform managed to get thanks to its ‘Plan ₿’ campaign, in which it clarifies it believes people have a basic right to control their own money, data, and identity.

The new cryptocurrency exchange will open in closed beta the week of November 18, and will enter a market riddled with competition. Other cryptocurrency firms that started off launching a wallet and added an exchange to their offering include Bitcoin.com and Blockchain.com.

Featured image by Austin Distel on Unsplash.

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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.