FCoin - the new kid on theblock

Last week, I did an analysis on Crypto Exchange tokens and we saw how exchange tokens have been more stable compared to many altcoins. It's a fact that, whether you make a winning or losing trade, exchanges get their cut.

Crypto Exchange Rank and Price Changes

We see that the position of each exchange's ranking is almost the same, while the decline in volumes has also resulted in lower prices of 3.53% (KuCoin) to 35.65% (COSS), Binance was the surprise gainer with 14.53% gain in price despite the lower trading volumes.

List of Crypto Exchanges with Tokens

This week, we are excited to share with you the latest crypto exchange token which is likely to further change the landscape. FCoin has launched their exchange beta with an innovative and unique platform which rewards community users by "mining" new tokens with their trading fees.

![Fcoin logo.png]

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FCoin was founded by Zhang Jian, former Huobi CTO. He is also the author of the book “Blockchain: Defining The Future Finance and Economic Landscape”.

According to Zhang Jian, FCoin, has gained investments from top-notch investment institutions including Danhua Capital, Node Capital, Singer Capital, Timestamp Capital, 8 Decimal Capital, Zipper Fund and other investors.

FCoin is an innovative and unique platform whereby its users, namely community members can use the FCoin Tokens (FT) issued by FCoin to execute trades and exercise their rights to participate in decision making.

It is the world’s first fully transparent trading platform, with full disclosure of real-time assets and transaction data on the platform. It adopts a unique “transaction fee mining” model and more than half of the FTs mined are rewarded to community users by returning the transaction fee. Besides, 80% of the exchange’s revenue will go to the holders of FT, while FT holders also have the right to participate in the major decisions of the community.

FCoin assets.png

As of yesterday, the total volume of FCoin was $3,300,000,000, making it the largest exchange in the world in trading volume. The reason for the large volume is the fact that for the next three months, all transaction fees will be reimbursed in FT the following day.

FCoin Token

FT is the token issued by FCoin. The entire issued FT base equates to the overall ownership of FCoin trading platform which adopts an innovative “Trans-Fee Mining” model. FCoin will be returning all members/users’ transaction fees spent on the platform in the form of FTs by using up to 51% of the platform’s total FTs (10 billion) to do so. This means that the circulating FT token amount will increase over time, until the 51% of 10,000,000,000 has been reached. Over the past two days, roughly 32,000,000 tokens have been added to the supply daily.

Source: FCoin Whitepaper https://www.fcoin.com/ft-en.pdf?v=1.0.90

The current market cap with the current circulating supply of 750,000,000 is around $622,500,000.

A quick comparison with Binance shows that this trading volume is already 3X that of Binance but market cap is already about one-third that of Binance. Albeit, FCoin tokens will have an increasing supply due to the “Trans-Fee Mining” model.

Return on Investment

I made a small investment of $1,660 to purchase 2,000 FT tokens at the last traded price of $0.83. Based on the total 4,249 BTC to be distributed, I will earn about $72 which is an ROI of 4%. If we assume that due to the increasing tokens in circulation, the returns will decrease until mining is completed, using compound interest, your annual return would be about 3X. This is without taking the price of the FT token into consideration. The FT token will increase in demand due to the daily dividend distribution and trading demand.

While FCoin has been criticised for it’s self-inflating tokens formula, https://www.ft.com/content/0677ed1c-706e-11e8-852d-d8b934ff5ffa, this will only hold true till all 51% of the total supply is rewarded to the community while 23% will be issued to holders of FCoin Fund, a stabilisation fund and the balance to be held by private capital (5%), strategic partners (9%) and founding team members (12%). 35% out of this FT tokens will be locked over the next 3 years. https://support.fcoin.com/hc/en-us/articles/360005878434-Founding-Team-and-FCoin-Fund-FT-Lockout-Plan

FT Initial Distribution.png