Crypto Exchange Coinsuper Leapfrogs To #4 Trading Volume, Questions Arise
Coinsuper positioned itself among the four main cryptocurrency exchanges in a sudden increase in trading volumes. Traders raise concerns about an alleged false volume.
During these days, the exchange Coinsuper was not known to any of us. But suddenly it is among the four largest exchanges, along with Binance, OKEx, and Huobi. The Hong Kong-based exchange rose from 16th to 4th place in about a month.
We're pleased to announce that Coinsuper is now ranked TOP 4 on CoinMarketCap!
Coinsuper is committed to providing customer-oriented, efficient, professional and secure trading services. Register Now: https://t.co/oiHw5VWW2H#Coinsuper #Crypto #Trading
— Coinsuper (@Coinsuper_OFCL) July 16, 2018
While the new market may see robust volumes, the sudden growth in volumes to nearly $1 billion is disconcerting. So once again, there were comments about techniques for falsifying volumes in exchanges.
Recently Coinsuper officially launched its CEN (Coinsuper Ecosystem Network) token to support the exchange ecosystem. This token has not yet been included in CoinMarketCap and from its Twitter account, the company announced that it will start implementing transactional mining as of Monday, July the 16th.
As such, transactional mining is, in fact, a form of' trade reward system. So no coins are extracted, but users see a confiscation of the fees, and a reward of up to 500 CEN, for trading and carrying out transactions on the exchange. In this way, Coinsuper seeks to encourage its volumes. And this is nothing like the fake volumes, but it can make CEN's digital asset more prominent.
“The mining progress of the hour and the day will be shown on the homepage and the account page respectively. Continued trading activities beyond the limits will be charged the standard trading fee with no CEN reward,”
explained the exchange in a recent publication.
The increase in trading and in Coinsuper's positions coincided with the launch of new, rather dark markets, which immediately had significant volumes. Exchanges like Bitforex, which recently listed the No BS Crypto Project tokens (NOBS) began to receive criticism about their unrealistic volumes.
“be careful with all these new dividend exchange tokens (bit-z,bitforex,fcoin etc) while the idea is great, most of them got insanely high supply (1b+), no cmc info out, and are at 200-600ml$caps so don’t get burned don’t buy stuff without correct cmc info”
While there are no detailed reports of losses or failed trades, the issuance of native exchange coins is causing some skepticism, especially if the asset is over-promoted. Some believe that exchange coins pass through unwarranted pumps, including Binance Coin (BNB) and KuCoin Shares (KCS).
There is also skepticism about Bibox Token (BIX). Exchange tokens add another form of liquidity and sometimes serve to hedge the price risk of other assets. However, its price also fluctuates, and its large supply can create the possibility of forced liquidity. Some traders suspect false orders.
be careful with all these new dividend exchange tokens (bit-z,bitforex,fcoin etc)
while the idea is great, most of them got insanely high supply (1b+), no cmc info out, and are at 200-600ml$caps so dont get burned
dont buy stuff without correct cmc info
— tehMoonwalkeR (@tehMoonwalkeR) July 14, 2018
The community suspects that the new supposed exchange model may consist of creating its own token, with transaction mining, allowing 0 fees for trading/distribution of fees to the token holders. Creating this a lot of volume (fake/0 fee) to get them rated high on the CMC. In a nutshell: Ask ICOs for insane listing fees since you're a “top ranked exchange” to keep the ponzi going.
Buying and keeping exchange tokens, even those that promise rewards or dividends, can be another risk.
The Binance model is being copied to new power plants, but its safety and other qualities have not yet been tested. And because cryptos exchanges are largely unregulated, orders and liquidity can pose risks to the business in stages. So you should be extremely careful about entering the game with a new exchange.