Binance, OKEx And Huobi Global Witness 30% Increase In Trading Volume Reports TokenInsight
Binance, OKEx, And Huobi Global Witness 30% Increase In Trading Volume Reports TokenInsight
It seems like the first quarter of 2019 has been in favor of the crypto market, as certain cryptocurrency exchanges have witnessed 30 percent growth in the overall trading volume. This was reported by news outlet, Decrypt, who happened to source, TokenInsight, a Palo Alto-based firm devoted to providing accurate data and analytics that help to understand market trends.
Although it has been noted that basing market performance by volume alone is probably not the best bet, the fact that the market is regaining possible investors and money is currently serving as a sign of hope. Interestingly, it's crypto exchanges, Binance, OKEx and Huobi Global who have witnessed the growth, but not others like “Coinbase Pro, Bitfinex and others,” shares TokenInsight.
What are the driving forces that make the former three superior to the rest? As per the claims made, Initial-Exchange Offering (IEO) is what’s making the difference.
An article dubbed, “What is an Initial Exchange Offering (IEO)?”, by Gene Yan Ooi explains IEOs as:
“Having an exchange (or set of exchanges) function as the counter-party. Developers mint the project’s tokens and send them to the exchange, [who] will then sell the tokens to individual contributors for Ether. Subject to the agreement between the developers and the exchange, conditions traditionally found in an ICO can be emplaced in an IEO.”
Yan Ooi notes that this method is advantageous because contributors can be found via the exchange’s established userbase, rids gas wars, reduces the possibilities of scams – which is a growing problem within the crypto sphere – “functioning as a vote of confidence from the exchange and sponsor, which has to conduct its own due diligence on the developer’s project,” and it being part of an exchange is deemed “a natural step”.
According to Decrypt, Binance has been one of the “early adopters” of IEOs and this is witnessed by their acquisition of BitTorrent, which resulted in a token sale amounting to roughly $7 million within minutes. Said sales are supposedly conducted using the exchange’s native token, which implies the value of the latter also goes up.
Below is a table provided by TokenInsight:
Table 1: “Figure 4-1 Exchange Token Trading Information”
As you can see, the Growth Rate for BitMax’s BTMX token (682%), Bibox’s BIX token (225%), OKEx’s OKB token, Binance’s BNB (186%), KuCoin’s KCS token (159%), Huobi Global’s HT token (132%) and ZB.com’s ZB token (121%) have all witnessed significant growth in Q1 2019.
Bitcoin Exchange Guide (BEG) recently reported that KuCoin completed its 6th token burn and compared to the last two quarters, Q1 resulted in a significant burn. This indicates higher profits made and an increase in token value. Binance also supposedly conducted its token burn, driving its token value up.
Another interesting point that has since been made is moving native tokens from the Ethereum blockchain to one native to said exchanges. An example of this is Binance, who recently launched its Binance Chain mainnet and it seems like the latter two in the top three are leaning towards changing blockchains as well.