FCoin Exchange – An in-depth analysis.

What is FCoin Exchange?

FCoin was founded by Zhang Jian, former CTO of Huobi.

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.

For FCoin users, trading is mining. The firm will reward more than half of its FCoin Tokens to users by returning transaction fees to them. Owners of FCoin Token can share 80% of the exchange’s revenues and have the rights to participate in major community decisions.

The exchange

You can reach the exchange via https://www.fcoin.com/i/Qeawa. The exchange has 7 trading pairs currently: ETH/USDT, BTC/USDT, LTC/USDT, BCH/USDT, ZIP/ETH, FT/ETH and FT/USDT.

The following coins will be listed soon:

“1. We will list Ethereum Classic (ETC) on June 8, 2018 (UTC+8, the same below) and open the ETC/USDT trading pair in the mainstream zone of FCoin. 2. We will list Bytom (BTM) at 16:00 on June 11, 2018 and open the BTM/USDT trading pair in the innovation zone of FCoin. 3. We plan to list Zilliqa (ZIL), Ripple (XRP), OmiseGO (OMG), ICON (ICX), Aeternity (AE), 0x (ZRX), NEO (NEO), Ontology (ONT) and other Token/Coin in the near future.”

The UI is clean and easy on the eye.

Volume (24h, as of June 8, 2018)

FT/USDT = $75,000,000

FT/ETH = 100,000 ETH = $60,000,000

BCH/USDT = $141,000,000

BTC/USDT = $1,449,000,000

ETH/USDT = $845,000,000

LTC/USDT = $72,000,000

ZIP/ETH = 7,000 ETH = $4,200,000

The total volume of FCoin was $2,646,000,000, which makes it the largest exchange in the world, volume-wise. The reason for the large volume is the fact that for the next three months, all transaction fees will be reimbursed in FT the next day. That brings me to the next item of this article, and perhaps the most important part: the native token, FT.

FT 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 reimburse 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.

In simple terms, 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 10,000,000 tokens have been added to the supply daily.

The current market cap with the current circulating supply of 240,000,000 is around $120,000,000.

Reward mechanism

Every day, FCoin exchange distributes 80% of all revenues to FT token holders, based on the FT amount they hold relative to the total circulating supply around midnight (GMT +8). The holders will be airdropped the rewards of all trading pairs, in the token of trading. This means at the end of the day, you will receive BTC, ETH, LTC, USDT, ZIP and FT. At the time of writing, there have been 2 revenue distributions. I will explain the mechanism based on the June 7, 2018 distribution, using my own account.

On June 7, I held 2500 FT tokens. The total FT supply was 224,000,000. Therefore I held 0.0011% of the total supply or 0.000011 times the total supply.

The cumulative revenues amounted to 831.41 BTC, leaving 80% = 665.13 BTC to be distributed amongst holders. Below I will attach the distribution of revenues per coin, as well as my received dividends.

Source: https://www.fcoin.com/distribution.html

Potential

Based on my $1250 investment (2500 FT tokens times $0.50), I earned a total of $60 in the first daily distribution. That’s a ROI of almost 5%! The distribution the day before was 220 BTC, which would’ve been $25 in distributions, which is still a 2% daily ROI.

Scenario

Let’s say due to the increasing amount of tokens in circulation the returns will decrease until they reach 0.5% ROI daily, using compound interest (investing those daily returns into FT tokens) your annual return would be 6.17x. This is without taking the value of the FT token into consideration. The FT token will increase in demand because of the dividend distribution, increasing your portfolio value while reaping rewards.

Social media

As of time of writing, the English FCoin telegram group has 1,000 members. The Chinese telegram group has 3,800 members. There is little to no noise on twitter about #FCOIN or $FT, making it a relatively unknown commodity, which hasn’t reached its peak yet.

Conclusion

In summary, FCoin is a great exchange with an enormous amount of volume. The FT mining reward principle is fantastic, and so are the returns. Being backed by so many VC funds, as well as the prior experience of the CEO, makes it the next big Asian exchange. Adding multiple new coins to the exchange will only increase volume and demand.

This is a must-invest in my opinion, and I will keep everyone updated on the progress via https://twitter.com/Crypto_Pajeet.

You can sign up for FCoin using the following link: https://www.fcoin.com/i/Qeawa.

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