China-based FCoin – a new crypto exchange launched in May that takes a novel revenue model – has come under the spotlight after its trading volumes appear to have almost immediately surpassed some of the largest exchanges.
Seemingly contributing to that spiking volume is the service’s new business model, called “trans-fee mining,” which is seen as controversial by the Chinese cryptocurrency media and has also been criticized by Binance, one of the world’s largest exchanges.
Founded by Zhang Jian, the former chief technology officer of Huobi, FCoin touts a new business model that effectively turns cryptocurrency trading into mining, since it provides a means to obtain FT tokens issued by FCoin.
But instead of adopting an initial coin offering or an airdrop, FCoin is issuing 51 percent of tokens to the public in exchange for making transactions on the exchange.
“It may appear attractive that you just hold the token and let other people who make trades on FCoin to generate dividend for you.
FCoin founder Zhang Jian has published a lengthy tell-all detailing the demise of the once-promising crypto exchange platform with the service unable to service the $125 million in crypto deposits owed to customers.
China-based FCoin – a new crypto exchange launched in May that takes a novel revenue model – has come under the spotlight after its trading volumes appear to have almost immediately surpassed some of the largest exchanges.
