The title of the world’s largest global exchange has been something that has belonged to Binance for the longest time, since its launch in 2017. With occasional overtaking of another exchange called OKEx. But, according to coinmarketcapital.com (CMC) a new, lesser known player has taken it this time.
According to coinmarketcap.com’s statistics, CoinEx has overtaken the former world’s largest exchange by volume, by handling $1.46 billion in trade volume. Binance is short behind CoinEx with a trade volume of $1.25 billion per day.
The top five global exchanges listed on coinmarketcap.com’s website suggest that there may have been a change in the way the company judges exchanges because many obscure, unheard of platforms are in the mix.
New Business Model
In a step similar to the one taken by Binance, CoinEx too adopted the ‘trans-fee’ mining model. Which basically reduces customer paid transaction fees so as long as they use the exchange’s native currency/coin.
This model has received and is continuing to receive a lot of critique industry-wide, because people believe that it promotes a higher volume of automated trading and that the method has drawn a very thin line between outright market manipulation.
The cryptocurrency market is a highly competitive and densely crowded space. And hence the competition between exchanges for the top positions are fierce and cut-throat, so it is no easy feat to have it and it comes with no guarantee that CoinEx will stay on top.
However, with the combined effect of a new business model and coinmarketcapital’s new methods of judging exchanges with one and other, for now this small Chinese Exchange has managed to achieve quite a commendable feat. The crypto of choice on the platform is USDT and the exchange recently announced its CET token’s coin burn as well. The exchange employes 50 people across their offices in Hong Kong, Singapore and Shenzhen.
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