BitForex Crypto Exchange To End Trans Fee Mining

The BitForex crypto exchange announced on September 27 that it is planning to end supporting transaction fee mining or trans-fee mining soon. The Singapore-based exchange which was just one of the many obscure exchanges until four months ago recently went on to become one of the world’s largest crypto exchanges in terms of trading volume.

Crypto exchanges usually make money through their transaction fees. When a customer purchases a digital asset, they pay the exchange’s “taker’s fee” and the individual selling the asset pays the exchange’s “maker’s fee”. The “taker’s fee” is typically between 0.5-0.75 percent, while the “maker’s fee” is usually around 0.25 percent. These fees are collected usually in the form of BTC or ETH.

Crypto exchange BitForex started its trade mining program on August 1 this year. The aforementioned business model is reversed with transaction fee mining in the sense that the exchange refunds 100 percent of the transaction fee back to the trader in the form of the native token of the exchange.

The exchange shared that 120 percent of trading fees will be distributed in the form of BF token. The exchange also added that initially, it would provide the following three trading pairs for trade mining: ETH/USDT, BTC/USDT and BCH/USDT. However, the exchange announced on September 27 that BF trade mining had reached its final stage.

This announcement was even more interesting that it came on the same day a report was published in Bloomberg which partly blamed fake trading volumes on many small unregulated exchanges such as BitForex, as a result of the trans-fee mining business model. Vice President, BitForex, Garrett Jin confirmed via email that trading on the exchange had surged due to trans-fee mining, as stated in the CryptoGlobe report.

While the BitForex crypto exchange surged in terms of its trading volume, recently creeping doubts pertaining to the integrity of crypto markets have dissuaded some professional money managers from investing in virtual currencies. It also prompted regulators to take a closer look at exchanges. Some exchanges did go to great lengths to avoid manipulation. However, according to Neil Woodfine, a former crypto exchange executive, some exchanges simply follow the example set by other exchanges, as stated in the Bloomberg report.

The post BitForex Crypto Exchange To End Trans Fee Mining appeared first on OWLT Market.

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