With 300% returns over ten days, China’s top investors are quietly making huge profits on this top-secret exchange. Comments Off on With 300% returns over ten days, China’s top investors are quietly making huge profits on this top-secret exchange. 1654

With 300% returns over ten days, China’s top investors are quietly making huge profits on this top-secret exchange.

I am going to write an exchange review about Fcoin. This is an exchange that has recently been blowing up in China but has seen very little attention in the overseas market. FCoin was founded by Zhang Jian, former Huobi CTO and author of the book, “Blockchain: Defining The Future Finance and Economic Landscape”. The project is backed by many top Venture Capital and investment firms, including  Danhua Capital, Node Capital, Singer Capital, Timestamp Capital, 8 Decimal Capital, Zipper Fund.

Besides having the ex CTO of Huobi and many prominent investors, why else is the price taking off, and why do I like this exchange?

At first glance, there doesn’t seem much to see. The website is in the Beta stage and is quite simple at best. The whitepaper is short and straight to the point. However, don’t let the simple package fool you. There is a lot to the project.

Daily Dividends

This surprised me at first and is what gets a lot of people excited about the project. The project sends you daily dividends based on trading volume. They send 80% of REVENUE distributed to FT token holders. On my first week of holding the token, I received anywhere from 2-7% in dividends every day! It feels like Christmas as you wait for your dividends every afternoon. Unlike a lot of projects that rewards you in their native currency, fcoin rewards you in whatever tokens are trading on the platform. This means you can receive Bitcoin, Ethereum, USD, Litecoin and others in dividends. This is what gets people hooked on the platform.

Seems too good to be true, right? In fact, the term Ponzi scheme has been thrown around a lot by people who don’t fully understand the project. I will break down the mining mechanism for you and some of the tokenomincs to show you how this is working.

Trading is Mining

Another way Fcoin is standing out from the crowd is their mining mechanism. Essentially by buying and selling FT, the fees you would normally pay gets rewarded to yourself in FT tokens. These are freshly minted FT tokens that get introduced into the system. Therefore, by buying and selling a lot, you are minting and being rewarded with new FT tokens. This is also how there are massive amounts of volume being pumped through the system. Miners are buying and selling their own tokens for rewards. You can see yesterday’s mining produced about 6% in new tokens. This explains the huge dividends getting paid out to holders. To keep receiving the large dividends you basically need to keep buying FT tokens else your tokens will be diluted.

What I have noticed on the platform is people buying and selling their own tokens. They are essentially mining their own transaction to generate more FT tokens for themselves. Be warned though, you could easily miss your own trade and lose money if the market is moving too fast.

Token Distribution

As you can see, the team and original investors hold a huge majority of the tokens. Although they are not making much money off of trading fees, they do hold a majority of the tokens. This is how they are able to give away 80% of the revenues. They are making money by increasing the value of FT tokens.

Potentially Huge Returns

This coin finished it’s ICO less than a month ago and has been unstoppable. If you got into the ICO, you would have seen returns of 50X plus. As an investor, I have been trying to see where this can go wrong. However, due to the daily dividends with hourly snapshots to see how many tokens you have, investors have a very strong incentive to hold their tokens. This created a situation where a lot of people want the tokens but people don’t want to sell, hence driving the price up. Keep in mind though, new FT tokens are being mined every day. This means as the price of FT goes up, more tokens are being mined. This will make the token increasingly more expensive. It will eventually have a correction when prices get too high.

Getting Started

With that in mind, if this token interests you, sign up with our referral link here (full disclaimer). You will save 100% of your trading fees and an additional separate bonus goes to us. In short, a win-win situation. I hope you have enjoyed this article.

Sign up link:

https://www.fcoin.com/i/wgq0x

Referral Code: wgq0x

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