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Behind BTCC’s Revamp: Feeless Trades for Three Months, Native Token on the Horizon

Eight months after it shut its doors, the oldest Chinese cryptocurrency exchange, BTCC, is now up and running, with an ambitious rewards system that aims to attract more users to the platform.

Formerly known as BTC China, the company was basically forced to cease its cryptocurrency exchange amid a crackdown on Bitcoin and cryptocurrency trade in China toward the end of 2017.

While the company was able to continue operating its mining pool and mobi wallet after the closure of exchange, the business was bought out by a Hong Kong-based blockchain investment fund in January 2018. With a new team at the helm, the dust was brushed off the cover of the old exchange and was re-launched this week.

Ambitious rewards system

The new exchange supports Bitcoin, Bitcoin Cash, Litecoin and Ethereum trade against the U.S. dollar and cryptocurrency pairings. Before its closure last year, the old BTCC exchange supported over 90 different cryptocurrency pairings.

The major talking point of the relaunch is BTCC’s point-based reward system, which has garnered a lot of interest in the crypto community.

For a limited time, new users who register verified accounts on the exchange and make a deposit along with their first trade will earn BTCC points. These points will then be converted into BTCC tokens later, which will be the native token of the exchange. It is not yet clear when these native tokens will be launched. Users will also be rewarded points for referrals and other activities on the platform.

The system comes in the wake of some interesting moves taken by a couple of competitive exchanges. Both Coinbene and Bit-Z temporarily flew to the top of overall trade volume at the end of June, after implementing a transaction-fee mining system.

Users are basically given the sum of the transaction fee on a trade in the exchange’s native currency. Clearly the move has been met with great interest, as users flocked to make trades in lieu of the promised return in native tokens.

However, BTCC is not operating in the transaction-fee mining model, but it has promised a zero-fee trading scheme for the first three months of the exchange’s operation.

The world’s largest cryptocurrency exchange by trade volume, Binance, has set high standards in the very short time it’s been in existence.

Launched in July 2017, Binance is famous for its 50 percent discount on trading fees for users utilizing its native BNB coin. As Binance CEO Changpeng Zhao told Cointelegraph in an exclusive interview last month, it’s a big factor in the exchange’s popularity:

“With token economics, now our people who participated in our ICO — who bought the BNB tokens using the platform — are adding more value to the platform, which, in return, increases the value of the BNB coins. The fact they’re using our system [means] they are now investors, coin-holders, and users at the same time. They benefit from the fact that they’re using our system. While they’re paying the commission fees to trade on the platform, they’re also realizing a lot more value to the Binance cost. This is an economy that’s never existed before.”

Reward points suit the BTCC model

BTCC marketing manager Aaron Wen told Cointelegraph that the exchange’s reward-points system was preferred to the transaction-fee mode that has been adopted by a number of other Chinese exchanges.

At this stage, with the launch only a few days ago, the company is of the opinion that it is the best incentive system to attract users, both old and new:

“The trans-fee model is very popular, especially for Chinese exchanges at the moment. There’s still a business risk, so our management is reviewing this model and analyzing how it can be sustained in the long run. For now, giving away points for trading that can be converted into our token in the future is what we think makes sense for our business.”

What remains to be seen is when the exchange will finally launch its native token for the platform. When that happens, a decision would be made on the longevity of the reward-points system:

“The reward-points system will be reviewed upon the issuance of the BTCC tokens (reward points are fully convertible to BTCC tokens). Our ultimate goal is to give back to our community, so the reward points were developed to reward our early supporters. We want our users to be incentivized every time they use our platform. We want to ensure that the system is fair for our users and will provide updates accordingly.”

BTCC current trading data

Chart

Image source: Coinmarketcap

BTC China — before BTCC

Before it was forced to shut down its initial exchange in 2017, BTC China became a popular platform that was revamped by self-proclaimed ‘Bitcoin Maximalist’ Bobby Lee, who took over the platform that was initially developed back in 2011.

Lee bought into the business in 2013 and took it to higher and higher heights. Although BTCC is now owned and operated by a Hong Kong-based investment fund, Lee still serves as an advisor to the company, which he confirmed in an exclusive interview last month:

“There’s a new management in place. I’ve stayed on as an advisor to the company, so I’m just helping them out on some strategic projects. In terms of their actual day-to day stuff, I don’t have that visibility to share.”

At the time of the acquisition of BTCC by the Hong Kong-based blockchain fund, Lee was quoted as saying he was “very excited about the resources this gives BTCC to move faster and aggressively grow [its] businesses in 2018 and beyond.”

Before it ceased its exchange operation in September 2017, BTC China’s exchange was the second largest in the country.

Return of a Chinese staple

In its day, BTC China was an early trendsetter for Chinese cryptocurrency exchanges. Its 2017 closure was not a result of a technical failure at the exchange, but rather political and economic pressures in the country itself.

What this could demonstrate is the power that regulation can have on the blockchain industry as a whole. BTCC was a well-run, popular exchange that was of the view that it didn’t have a better option than to close the doors of the exchange.

As Lee told Cointelegraph, big countries like China need to take a page from the book of smaller countries that are more accepting of cryptocurrencies and blockchain technology.

“Some of the small countries who are more risk-prone, they are doing it right. They are doing it by a laissez-faire approach. They are welcoming companies to set up a jurisdiction in their country, and to set up entities and licensing it all. Some are doing it more aggressively than others. That’s just how things are. Because different countries will choose different paths, whether they will take a strong adoption approach or whether they will take a more reserved wait-and-see approach. I think China is of the wait-and-see approach.”

Nevertheless, BTCC is back and the success of its revival could only be gauged in the next few months.

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BTCC Re-Opens, Announces Initial Zero Trading Fees

Cryptocurrency BTCC–BTCC, the popular cryptocurrency exchange formerly known as BTC China, has returned to business after closing its doors last September. The exchange, which was at one point in the top three by volume of all crypto markets in China, has announced the launch of BTCC, a minor re-branding of their cryptocurrency trading platform.

In addition to returning to crypto-trading, the company has announced its intention to create a native token to the exchange, similar to other popular outlets such as Binance Coin (BNB) and KuCoin Shares (KCS). The current iteration of their token involves the collection of points by users, which can be accumulated through various tasks such as referrals and making trades. The website states that points will be redeemable by users in the future for the yet to be released native token, providing incentive for participants to get an early start on the exchange.

More significant to frequent traders, BTCC is offering a three-month, promotional zero fee period on trades, allowing for users to build points towards the BTCC token without incurring the fee associated with most trading platforms.

Given the truncated time span of the fee-less trading, it appears that BTCC will not be following other exchanges in instituting the trans-fee mining protocol made popular by CoinBene and Bit-Z. Trans-fee mining involves users paying an initial fee for transactions, which is then refunded at the end of the day for 100% of the original value in the exchange’s native token. Using this innovative model of imposing fees, both exchanges were able to significantly increase their daily trade value. Last week, following the implementation of trans-fee mining, CoinBene temporarily jumped to #1 in total exchange volume, with Bit-Z following close behind in second place.

Bitcoin China, the original branding of BTCC, was one of the earliest cryptocurrency exchanges on the market, first founded in 2011. However, given the tight regulatory control of China and the potential for a cryptocurrency crackdown, the exchange announced its closure in September 2017. The move followed significant pressure from the Chinese government to ban ICOs, with crypto-based exchanges caught in the crossfire of uncertain regulation and potential forced termination. Bitcoin China missed out on the crypto-boom that occurred in the final months of 2017, when the market capitalization shot to 825 billion USD, with an accompanying exponential increase in trade volume. Rival U.S.-based exchange Coinbase reported triple-digit increases in users during the 2017 boom, reaching over 13 million customers in November–a number to rival that of brokerage firm Charles Schwab.

Speaking with CCN, Vice President of BTCC Aaron Choi was confident on the re-opening of their exchange and future coin integration,

“A soft launch has already been made and we decided to go ahead with the BTCC points system that will be fully convertible to BTCC tokens. We wanted to give something back to the community which has supported us through a rather difficult period. Initially, we started trading with just Bitcoin/USD pairs and eventually added Ethereum, Litecoin and Bitcoin Cash. We will be adding further coins according to what our customers tell us although these will probably be Top 10 anyway”.

As of writing, the newly minted BTCC exchange is offering Bitcoin, Ethereum, Litecoin and Bitcoin Cash for trading, with all four coins paired to USD in addition to crypto-crypto markets.

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Formerly Top Three Crypto Exchange BTCC Relaunches, Plans to Issue Native Token

BTCC, formerly known as BTC China, has relaunched its crypto trading platform and revealed plans to issue its own native token, according a company announcement Monday, July 2.

The rehauled crypto exchange is now live, offering trading for Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC) against the U.S. dollar, as well as crypto-to-crypto pairings.

The new site advertises a points-based system for users, who will earn points that will later be redeemable for a new, native BTCC token, whose release date remains unspecified.

For a limited promotional timespan, BTCC points will be earned through completing site registration and verification, as well as making a first deposit and trade. They will then be awarded for user referrals, and other activities.

BTCC has also announced a zero-fee trading regime that will last for the first three months after relaunch. This distinguishes BTCC’s new points system from that of rival crypto exchanges, some of whom have recently introduced a new so-called “trans-fee mining” revenue model, in which users receive 100 percent of their trading fees back in native exchange crypto tokens.

As Cointelegraph has reported, due to the popularity of trans-fee mining, both Singapore-based CoinBene and Hong Kong-based Bit-Z temporarily shot to the top of Coinmarketcap crypto exchange listings by volumes last week, although both have now been outpaced by stalwart rivals.

BTC China was founded in 2011 and was formerly one of the top three crypto exchanges in China, before a domestic regulatory ban on ICOs and rumors of an imminent crypto exchange crackdown prompted it to announce its closure in Sep. 2017.

This year, BTCC has been focusing on two further ventures alongside its trading platform – these being its international BTCC Mining Pool and Mobi wallet software. In January, the company was acquired by a Hong Kong-based blockchain investment fund to facilitate its rebranding and further expansion.

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BTCC Relaunches Exchange Business With Its Own Token Plan

BTCC, one of the longest-running and once part of the major three trading platforms in China, announced it’s relaunching its exchange business with a plan to issue its own tokens.

The company said on Monday its new crypto exchange is now up and running with new trading pairs including bitcoin, bitcoin cash, ethereum and litecoin against the US dollar, as well as crypto-to-crypto trading options.

As part of the plan to revive its business, BTCC said it is introducing a point system by which users can be rewarded with points by signing up, completing ID verification and continuing trading. The points, according to the company’s plan, can be fully converted into BTCC’s own tokens, which will be further tradable on its platform.

However, the company has not revealed a concrete timeline for its token issuing but only said it will be launched in the next “a couple of months.” It also indicates that the point’s supply will have a limit but the company has not yet decided at the moment a hard cap or a ratio how the points can be transferred into its token in the future.

Further down the road, BTCC said it is planning to add more major cryptocurrency assets and it’s also open to listing more ERC-2o based tokens.

BTCC’s relaunch plan comes nearly a year after it suspended Chinese yuan trading against bitcoin in September 2017 following the People’s Bank of China’s clampdown on initial coin offerings and fiat-to-crypto exchange.

Though the firm shifted its headquarters to Hong Kong and maintained a crypto-to-crypto platform called DAX, it was also suspended in December. Yet meanwhile, BTCC’s long-time rivals such as Huobi and OKCoin successfully pivoted to crypto-to-crypto platforms and rejoined the world’s largest exchanges by trading volume.

In a previous interview with CoinDesk, BTCC’s marketing director Tendai Musakwa said:

“When China banned all the bitcoin exchanges, that was a significant blow to us, because a significant part of our business came from our Chinese exchange.”

BTCC’s new way of rewarding traders also comes at a time when the trans-fee mining model has emerged among Chinese crypto exchanges, which reimburse users’ transaction fees with a platform’s own tokens – a model that appears to be somewhat similar to what BTCC will be taking, except that its tokens can only be redeemed at a later stage.

Commenting on that, the firm’s vice president of international business Aaron Choi said since BTCC will have zero trading fee in the first three months from now on, its model is more like a giveaway instead of mining at the beginning.

Yet, Choi admits that trans-fee mining could be an option in the future for BTCC as the firm is yet to decide on the issuance model of its tokens. He told CoinDesk:

“The (trans-fee mining) model draws a lot of attention at the moment. … But there’s still a business risk so our management is reviewing this model how it can sustain in a long term. So giving away points for trading that can be converted into our token in the future is what we think makes sense for now.”

Currently, BTCC has diversified its business to three main areas – the exchange, the mining pool and the Mobi wallet. The company was notably acquired by a Hong Kong-based blockchain capital firm in January of this year.

Just last week, CoinDesk also reported that the firm is planning to sell 49 percent of its equity in the mining pool business to a financial asset management firm based in Hong Kong.

Leigh Cuen contributed to reporting.

BTCC image via CoinDesk

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Oldest Bitcoin Exchange BTCC Launching New Platform in June

One of the longest running crypto exchanges, BTCC, has announced plans to launch a new version of the platform in June. The exchange formerly known as BTC China aims to open an exchange to enable international crypto trading. Naturally the company is no longer based in restrictive China but Hong Kong where crypto businesses are welcomed and encouraged.

In the official announcement it was stated that the company has leveraged more than seven years of continuous operation to bring the most reliable, convenient, and secure digital asset services to millions of users worldwide.

At launch the new platform will offer trading pairs such as BTC, ETH, BCH, and LTC, and will regularly launch new trading pairs to meet the needs of its users the announcement said. In a further incentive to draw in new customers from the ever crowded crypto exchange scene BTCC has offered zero-fee trading for the first three months;

The company is touting a technologically advanced, ‘cutting edge’ trading platform;

“In terms of technical developments, our exchange will utilize a multi-tier, multi-clustered system with an optimized, high-speed memory trading engine. So, you can make the trades you want on a cutting-edge system.”

BTCC are also taking security very seriously and are proud of the fact they have never been compromised. Offline cold storage and SSL encrypted traffic will be part of the revamped exchange protect digital assets and client information.

A number of additional bonuses are on the table including a points and referrals system;

“Points are also up for grabs for all customers! Referring users, verifying, depositing, and many other activities will all provide opportunities to earn you points. Our new reward point system will give you tangible benefits that you can use across the whole BTCC ecosystem including both BTCC Pool and Mobi wallet!”

It is possible that BTCC will mimic the offerings of other major exchanges such as Binance and develop its own in house token for reduced fee trading once the initial offer expires.

BTCC was founded in China in 2011, and was the world’s oldest Bitcoin exchange until it closed in September 2017 under pressure from the Chinese regulators following a major clampdown in the country. It was considered one of China’s top three exchanges, the other two being Huobi and OKCoin (OKEx), both of which have also moved to friendlier climes namely Hong Kong and Singapore respectively.

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Oldest Chinese Bitcoin Exchange BTCC Acquired By Hong Kong Investment Fund

The BTCC Bitcoin exchange, formerly known as BTC China, has been acquired by a Hong Kong-based Blockchain investment fund on terms that are yet to be disclosed, the company has revealed in a blog post Monday, Jan. 29.

Calvin Cheng, an advisor for the yet-undisclosed investment fund, expressed his excitement about their acquisition of the longest-running Bitcoin exchange in China, saying that they were “humbled” by the opportunity.

According to BTCC’s press release, the company will now focus on three major market spheres, namely the international BTCC Mining Pool, Mobi wallet software, and its own cryptocurrency exchange.

Co-founder of BTCC Bobby Lee expressed his confidence for the future after the deal, saying that he is “very excited about the resources this gives BTCC to move faster and aggressively grow [its] businesses in 2018 and beyond.”

The company has faced an uphill battle to grow since being effectively ousted from their homeland base in Shanghai, China in September due to Chinese government banning cryptocurrency trading in the country. The company has since set up a new base of operations in Hong Kong, and will now have the capital to continue its brand remake.

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Bitcoin Exchange BTCC Just Got Acquired

Bitcoin startup BTCC has been acquired by a Hong Kong-based blockchain investment fund.

While details remain scarce on the deal, BTCC said in a press release that the move will help its efforts to expand internationally following its recent closure in mainland China.

Bobby Lee, BTCC’s co-founder, said:

“Today’s acquisition is an incredible milestone for BTCC. … I’m very excited about the resources this gives BTCC to move faster and aggressively grow our businesses in 2018 and beyond.”

According to the statement, the company now aims to “lead every segment of the digital currency ecosystem,” expanding into the international market after Chinese authorities forced the closure of all cryptocurrency exchanges at the end of September 2017.

While its DAX cryptocurrency exchange is no longer in operation, BTCC will focus on its three main products: a mining pool, its Mobi bitcoin wallet and a USD/BTC exchange service.

According to BTCC, which is now registered in the U.K., its exchange business traded over $25 billion in bitcoin in 2017, while its mining pool produced almost $900 million worth in bitcoins in the same year.

CoinMarketCap data indicates that trading volumes for USD/BTC on the BTCC exchange was $123 million over the last 24 hours. It is currently in eighth place in the global volume rankings.

The BTCC pool accounts for 3.2 percent of bitcoin’s hashing power at press time, according to blockchain.info.

Hong Kong image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Bitcoin Exchange BTCC Brings Chinese Trading to a Close

BTCC, an international cryptocurrency exchange with headquarters in China, has announced it has ceased all domestic trading activities.

On its website, BTCC now states that all local trading in yuan and cryptocurrencies has been officially suspended as of midday, September 30, Beijing time. The exchange stopped accepting deposits on September 27, with China-based users being advised to withdraw their funds from the exchange before the end of October.

In a tweet accompanying the closure, BTCC claims to have had the longest known lifespan for a cryptocurrency exchange, having operated for a “world record” of 2,305 days.

The closure of the exchange’s China-facing trading operations comes following a statement from financial regulators on September 4, which banned developers and entrepreneurs from launching token sales (or ICOs) within the country. Exchanges in the country have since “voluntarily” decided to cease trading activities, though regulatory pressure is widely believed to have been the catalyst.

BTCC will continue to operate trading services outside China, and has also confirmed that its mining pool will continue to operate normally. Other major cryptocurrency exchanges in the country – including Yunbi, Huobi and OKCoin – are expected to cease trading by the end of October.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in BTCC.

Closed sign via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

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Longest Running Bitcoin Exchange Marks the End of An Era – Shuts Down

BTCC – Bitcoin exchange has terminated its CNY trading platform under declared China ICO ban regulation – leaving the industry and giving an end to its services.

BTCC made the announcement on Twitter, noting that it had operated for a “world record of 2,305 days.” Indeed, the vast majority of bitcoin users likely cannot remember a time before BTCC. Throughout the world, exchanges rose, fell, and occasionally scammed their customers, but BTCC remained.

This is not a surprise as the actions by the officials towards ICO ban has been followed with a domestic bitcoin exchanges shut down to be done with instructions by regulators. On Sep 14, BTCC announced that it will be closing down two weeks later on Sep 30, being the first to take the step. On Sep 27 BTCC did not accept anymore deposits.

Although BTCC’s operations in mainland China are winding down, the company will continue to operate elsewhere. BTCC’s USD and DAX exchanges, as well as its mining pool and other company operations, will function as normal.

Despite BTCC’s historic status, not everyone was sorry to see the exchange go. As a New York Agreement (NYA) signatory, the company had incurred the ire of a significant segment of the bitcoin community, and tensions have increased as the proposed November date for the controversial SegWit2x hard fork approaches. Consequently, some social media users gloated at the exchange’s demise. Others expressed incredulity, believing thus-far unsubstantiated rumors that regulators will eventually license domestic bitcoin exchanges and allow them to resume trading.

Nevertheless, BTCC CEO Bobby Lee took to Twitter to commemorate the end of BTCC’s record-setting run:

“We started as China’s 1st bitcoin exchange. Back then, BTC price was just CNY ¥150,” he wrote. At present exchange rates, that is just $22.60, meaning that bitcoin has appreciated by more than 19,000% in the intervening years.

“Wish we could have bought some more,” Lee added.

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