The CoinEx cryptocurrency exchange has decided to upgrade the terms of the trade-driven mining model. CoinEx Tokens (CET) are issued to users instead of giving back transaction fees.
The company, a subsidiary of ViaBTC, told the community in an announcement on Wednesday that their ‘trade-driven mining’ feature received important popularity and reviews among global users after being introduced on July the 1st.
Indeed, the business strategy may have been very effective. It attracted an important level of interest in the short period and the success is noticeable.
But the exchange communicated that after having continually onboarded traders this month, the mining difficult that it is applying now can no longer ‘meet the growing demand of most users.’
In order to guarantee the ‘Trade-driven mining,’ the exchange unveiled a necessary adjustment that will take effect from 0:00 UTC on July the 12th.
Apparently, the changes will be related to the mining difficulty defined by CoinEx. The definition will go from ‘the upper limit of CET for hourly mining yield per account’ to ‘the upper limit of every share of locked CET (10,000 CET per share) for hourly mining yield per account.’
CET is the native currency used by CoinEx that is distributed via its trade-driven mining model. This is a business strategy that aims to target users from other platforms la Binance and Huobi Pro.
The exchange emphasized on Wednesday that the more CET you have locked the more CET reward you can mine during Trade-driven mining. At the same time, the exchange made some differences between ‘look CET’ and ‘unlock CET.’
The new trans-fee mining model has been debated in different news sites, forums and social networks. CoinEx offers a similar service and product to Fcoin, Bit-Z, and Coinbene. One of the main critics around these services is that they can be subject to price manipulability and the fact that it works as an ‘ICO in disguise.’
At the moment of writing this article, CoinEx is the 47th most important virtual currency exchange by trading volume with $21 million dollars transacted in the last 24 hours. The most important trading pairs are ETH/BTC, ETC/BTC, and LTC/BCH.