FCoin Crypto Exchange Reveals Plans to Purchase $24 Million of Native FT Tokens Back
Crypto Exchange Buys Back $24 Million of Their Own Tokens
Cryptocurrency FCoin is a new exchange that received spiking trade volumes in recent months because of their unnatural model for generating revenue. The new plan is to buy back millions worth of their own tokens to give capital for a new funding system.
Last Friday the exchange made the announcement that the new fund will be backing a group of tokens funds, chosen to push the blockchain further, as well as other cryptocurrency and blockchain projects. The new funds chosen will also be accredited sponsors, they also mentioned.
Throughout the initial process, they will collect 100 million dollars-worth of their own tokens, at a price around $24 million USD – during the time of the press release – to better fund the project. But, rather than provide the total amount from their own reserves, FCoin has stated that the normal capital will come from a buyback of tokens on the new market.
The move has accompanied FCoin’s addition to a new trading zone for their token. They’ve also made announcements on Friday, including new FT and other coin trading pairs.
FCoin has noted, there are only three projects which have already raised more than three million FT coins by way of funds raised. At least two of them have been recommended by two separate sponsors who will be able to be listed on the new exchange.
Like mentioned before, CoinDesk, FCoin has shown soaring trading volumes following launch because of the adoption of a brand-new business model known as “trans-fee mining,” that reimburses users’ transaction charges with the new exchanges coins.
Even though the model has drawn industry criticism over the long-term sustainability of the company. According to CoinMarketCap data, it shows that the platform has already recorded around $3.8 billion dollars in trading volume during the last 24 hours.
With that being said, FCoin will purchase $24 million of their own token back from the secondary market, who also follows a constant drop in the price of the FT Coin, which has dropped about 80 percent over a month or so, from $1.25 on June 13th down to about $0.24 at time of the press release.