In the digital market, competition is growing every day, which forces specialists in this field to look for new ways to interest and retain users, as well as to scale up. One of such methods was Trade-to-mine, which we will talk about in the review.
This method, in essence, means exchange mining. Blockchains and trading floors are constantly being improved, developing new consensus protocols, methods for creating blocks, trying to avoid network congestion, while increasing throughput, creating new encryption systems in order to increase security. Some even take desperate measures and reduce their commissions to the minimum possible.
But to attract users in the most unexpected way decided the small exchange ABCC, which issued its own currency AT, which is available only on their platform. This method is called Trade-to-mine. There is nothing difficult to understand in this method – the creation of each new block brings the exchange a certain amount of coins, which are used as a reward for the most active users.
That is, the more you perform operations on the platform – the more internal currency you get and the more commissions are leveled at the expense of this profit. And the company itself receives a profit due to the distribution of the token.
The token will be issued in excess of 200 million units, of which 50% will go to the team and shareholders, 40% will be deposited in the accounts of miners, and the remaining 10% will become a kind of gratitude to the platform for users who supported it even before the currency was issued.
Pros and cons
The main advantage of network policy is the bonuses that the platform pays token holders. These bonuses to a greater extent or completely cover the commission for transactions – the company spends on this 80% of all its commission income. In the first six months, the token showed stable growth and miners happily increased their assets in this currency, receiving financial incentives for this.
The growth was mainly driven by interest in the new concept, but it did not last long. At the moment, the return on investment in ABCC Token is -86.44%, although the total supply has just exceeded 60 million coins. Even the referral program does not save the situation.
That is, you get bonuses from the trading volumes of each user you attract, as well as from those whom he brought to the exchange and so on. This system is quite profitable for the very first users of the exchange, but it is completely not interesting to new participants. Also a problem was the fact that commissions are paid in BTC and ETH, and bonuses are received in local currency, which is quoted only on this exchange.
This scheme is more like a bad deal, when a little-known and not popular token is bought for a currency that is widely in demand and expensive. In addition, a reasonable question arises – if all the exchange’s income is spent on paying bonuses, then what development prospects can it have?
That is, users spend the best currencies that show high ratings, and in return receive a coin, the value of which entirely depends on the further actions of the exchange. Judging by the drop in profitability, this has become a problem for so many.
At the moment, it becomes obvious that Trade-to-mine made a profit only to its first miners, and only on condition that they managed to sell the currency when it doubled at the very beginning. It is too early to say how viable this concept is in the long run, since it exists only a year.
Many technologies in the world of blockchain got a second chance at life, being modified over time. Perhaps this is waiting for exchange mining.