Golden Observation丨Bitcoin fell below $50,000, but why exchange platform currency can outperform the market

Golden Finance Blockchain, May 19 News The recent bitcoin price has plummeted like a roller coaster. It fell again, and it has now fallen below $50,000. According to CoinMarketCap data at the time of writing, the price of Bitcoin was $43,126.45, a drop of 22.8% on the 7th.

It has to be said that the influence of the richest man in the world is really too great. The turmoil in the cryptocurrency market all stemmed from a tweet by Tesla CEO Elon Musk on May 13 - in that tweet titled "Tesla & He believes that although cryptocurrency is a great idea and has a bright future, it cannot be at the expense of huge environmental costs. Tesla will suspend Bitcoin payments. However, once Bitcoin mining transitions to sustainable energy, Tesla will continue to use it for transactions and will not currently sell Bitcoin. Additionally, Musk revealed that they are considering cryptocurrencies that use less energy. Just two hours after this tweet was published, Tesla’s official website removed the bitcoin payment option, and then the price of bitcoin began to fall in a “waterfall” style, and it did not rebound as quickly as the previous few times.

Golden hot search-zce list: BOT is at the top of the list: According to the data of Jine Finance and Economics ranking list, in the past 24 hours, the search-zce volume of BOT topped the list. The specific top five list is as follows: BOT, APPC, MXC, ZRX, BHD. [2021/2/1 18:36:59]

However, what is unexpected is that when the cryptocurrency market was severely frustrated, the platform currency of the top cryptocurrency exchange was not affected by this market shock much, although it was slightly inferior to the surge in the platform currency market at the beginning of the year , but the current overall performance is still better than the broader market.

Why Exchange Platform Tokens Can Outperform the Market

Then why are these exchange platform coins able to outperform the market when the mainstream cryptocurrency market led by Bitcoin is down? It has to be said that, as the most important part of the cryptocurrency and blockchain ecology, exchanges can always bring new directions to the market. This time, the platform coins of some leading exchanges can withstand the decline of the market. The impact is largely due to the fact that they have made arrangements in advance and brought tangible benefits to users through a series of "rich-making campaigns". While benefiting users, they have also injected new vitality into the exchange's own development. potential energy.

Golden Evening News | List of important news on the evening of December 29: 12:00-21:00 Keywords: Hainan, Bithumb, Samsung, Tron, Bakkt

1. Hainan Provincial Development and Reform Commission: The Hainan Blockchain Pilot Zone has attracted more than 70 blockchain companies including Huobi and Baidu Blockchain Labs.

2. The South Korean National Taxation Service collected more than 80 billion won in taxes on Bithumb.

3. Indian government institutes provide blockchain training in multiple cities.

4. Justin Sun: Samsung Galaxy S10 has added three TRON Dapps.

5. This week, the Bakkt BTC futures weekly trading volume totaled $46 million, down 59% month-on-month.

6. USDT accounts for about 75.19% of Bitcoin transactions.

7. BTC is now at $7,389, up 0.9% in 24 hours, with a market value of $133.967 billion. [2019/12/29]

In fact, the platform currency reflects the fundamentals of the overall operation of the cryptocurrency exchange, and it is also an intuitive expression of the exchange's own value. Under normal circumstances, the performance of the platform currency can basically be regarded as a "barometer" of the operation and value of the cryptocurrency exchange, and its value depends on the value of the exchange itself and the ecological construction of the platform. If the popularity of an exchange is higher, the trading volume is greater, and the ecological construction is better, then the value of the platform currency will naturally be higher. It will also decline accordingly.

Analysis | Golden Disk: FGI Fear Index 13: Golden Disk Comprehensive Analysis: The FGI Fear Index showed 13 on September 9, which is a new low in the past five months, approaching the February low. The market is in a state of extreme panic, but we also It can be seen that when the panic falls below 20, it will generally form the mid-term bottom of the market. On February 6, 2018, the panic value was 8. After BTC bottomed out at $6,140, it triggered a sharp rebound of 90%. On April 2, the panic value was 11. The previous day It bottomed out at $6,404 a day before rebounding 51%. Therefore, the madness after the panic is not ruled out here. Investors are requested to treat market shocks rationally and do a good job of risk control. [2018/9/10]

The exchange launched a "rich-making campaign"?

As mentioned above, the contrarian performance of exchange platform tokens is actually related to their recent series of "all-round wealth creation campaigns", so what is the exchange's "wealth creation campaign" all about? In fact, the "rich-creation movement" of cryptocurrency exchanges has not been aggressive. The first thing they value most is to lay a good foundation for compliance. Since any company that lands on Nasdaq now needs to be approved by the US Securities and Exchange Commission, those top cryptocurrency exchanges have performed very well in compliance work in the industry, and compliance has basically been obtained. Regulatory approval.

Analysis | Golden disk: BTC/USD 15-minute mid-track suppression: Golden disk comprehensive analysis: BTC/USD 15-minute K-line chart shows that the price has been constrained by the mid-rail, but it has been supported by the moving average system. The short-term is facing a breakthrough. Pay close attention to the pressure of 6400 Bit long and short contention. [2018/8/13]

In addition to laying a good foundation for compliance, we found that exchanges are still accelerating high-quality listings. Recently, the listing speed of mainstream cryptocurrency exchanges has accelerated significantly. Including Coinbase adding several new tokens to its trading platform after successfully completing the listing: The Internet Computer (ICP), Cartesi (CTSI), iExec (RLC), Mirror Protocol (MIR) and Tellor (TRB); and Huobi has also launched some new currency encryption projects such as Casper (CSPR) and Platon (LAT).

We can see that the main work of these leading crypto exchanges at this stage is basically to select high-quality digital assets for users, and to provide full life cycle services and standardized management of currency assets, helping the industry to move towards compliance and standardization develop. At the same time, it also provides more industry resource support for the project, fully supports the progress of the project, and promotes the development of industry compliance.

Finally, we have to mention the last fire of the exchange's "wealth creation movement": using the public chain to empower the platform currency. While the construction of ecological fundamentals such as compliance and currency listing has become more and more important, leading cryptocurrency exchanges have also begun to view market development with a predictable and overall strategic perspective. In fact, the exchange public chain has become the focus of the industry since last year, and has also become a key weapon for exchanges to upgrade their competition.

I believe many people have heard this sentence: whoever wins the infrastructure of the public chain can win the world! If you want to stand out among many competitors, you must be much faster than similar products in terms of innovation and iteration speed, and be highly open and transparent, making it difficult for other exchanges to match. Only based on strong business strength can the exchange have confidence in the development of the public chain and ecological construction. At present, in the cryptocurrency ecosystem, whether it is platform currency, wallet, DEX, or mining, cross-chain, and custody, the relationship between each other is becoming closer and closer. Only an infrastructure based on the public chain can combine everything together to form a whole, support each other, and interrelate with each other, and then bring greater market competitiveness to ecological planners.

It is worth mentioning that on the basis of the support of high-performance public chains, cryptocurrency exchange platform coins have begun to show their strengths. Platform coins have become an excellent way to empower public chains, and some exchanges have also adopted platform coins. Set as the core of the entire public chain decentralized financial ecosystem.

Summary

Judging from the value judgment of long-term investment, assets with deflationary total amount and strong value support can often obtain long-term value potential. Therefore, the overall trend of platform tokens whose value has been undervalued before should be more stable, and there is also a lot of room for improvement in investment yield. of.

In this "rich-creation campaign", we found that cryptocurrency exchanges pay more attention to the comprehensive layout of compliance, platform currency, and public chain infrastructure, and gradually share the long-term market development dividends with users. From the accelerated listing of high-quality coins to the rise of platform coins against the trend, cryptocurrency exchanges have already played a set of combined punches in the new round of "wealth creation campaign". The market competition in the future will only intensify, and whoever is stronger will be able to attract more users.

Part of this article comes from Yahoo Finance

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