September 25 will eventually become a day that many people remember. On this day, in an hour and a half, Bitcoin plunged from $9,434 to the lowest of $7,700, a drop of 18.38%. The market was battered, only OKEx, the amount of 24-hour bursts reached 6.65 billion yuan. The violently volatile market has made the boring trading market busy again, but we have found that the market has been declining since June, and the exchange traffic battle has already begun.
The cow does not know what to do, and the bears go?
The market is always so unpredictable. When most people have not recovered from the 18 years of winter, the bull market has come secretly. BTC went all the way, unstoppable, starting from the $4,077 on March 31, 19, and striding up to $14,000. Just after many people shouted "the cow is coming", the market began to fall, falling and falling, and it seems that the bear is coming.
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According to The Block, data from crypto-exchanges such as Coin and Coinbase showed a significant overall decline in cryptocurrency transactions since June. According to the transaction volume data of 10 trusted exchanges, the total transaction volume in June was US$111 billion, while the transaction volume in August was only US$55 billion, and the total transaction volume has dropped by 60%.
The average daily volume of both Coin and Coinbase is currently at a six-month low and has fallen 60% since it peaked in June. The average daily transaction volume of Coin's in June was nearly US$2 billion, compared with US$790 million in September; Coinbase's average daily transaction volume in June was nearly US$424 million, and in September it was US$150 million.
OKEx CEO Jay Hao confirmed to Babbitt:
“The reduction in market heat is indeed related to the current market. BTC has been in the 13000-9000 for a long time. In fact, it is not just OKEx. The overall trading volume of the market has declined to some extent. This is The inevitable result of the whole market."
Even on September 25, the 2000 knife amplitude "super market", the turnover was only 40.6% of the peak in June, but it also hit a new high since July 20. After the “9·25” plunging, the “$0.00” “low-priced” bitcoin did not arouse the enthusiasm of investors, and the transaction volume in recent days has been declining. At the same time, in the futures market, OKex's futures contract positions were almost swayed after hitting a new high on September 25. There is also no upward trend.
Spot trading volume is a powerful indicator to measure investors' interest in cryptocurrency. The sharp decline in trading volume also means that the market's heat is declining. Although the benefits of halving bitcoin will be welcoming next year, the mainstream view in the market is mostly pessimistic about the market in the coming months, and some analysts even yelled at the target price of 7,000, 6000 or even 5,000 dollars. Even the long-term investors do not dare to act rashly, and most of them are still in the stage of calm observation. The willingness to trade funds on the market is not strong, and the funds outside the market are still on the sidelines. Although Bakkt arrived as scheduled, it did not bring a huge amount of institutional funds to enter the market, and the sluggish trading volume was also considered to be a major trigger for the “9·25” plunge. Looking back on 2019, the cow did not know what to do, but it was a bear.
Traffic competition, IEO is full of tricks
Interestingly, despite the decline in trading volume, the network traffic on the head exchange has not decreased at all, and it has increased substantially. Data provider CryptoCompare data shows that the overall network traffic of the crypto-equity website has been declining since June, however, some of the most popular exchanges have seen a significant increase in their network traffic. From July to August, the network traffic of the currency security increased by 68%, and the traffic of Coinbase more than doubled. In the stock market, the battle for traffic has already begun.
For many head exchanges, a big source of traffic is definitely IEO. The IEO is considered to be a major engine for launching the "bull market" of 2019. However, after the initial upsurge, investors found that the return of IEO did not seem as high as expected, especially after Bitcoin continued to rise. The simple SGD is no longer able to meet the exchange's demand for traffic. Finally, in July, as the volume of trading began to decline from the high point of the end of June, the major platforms began to make new articles around IEO.
The “discount” subscription began to become a trend, that is, users subscribed for tokens by rushing to buy low prices. Compared with IEO, the online currency is not the first time an exchange is launched, but a currency that already has a certain market heat. They have already formed market prices on other exchanges.
On July 31, a total of 200 users in the Firecoast FastTrack Phase 5 vote purchased VSYS at approximately 3.6 percent, and FSN was purchased at approximately 4.7 percent. The 4th BHT and GT platform coins voted to catch up with the wave of platform coins. At that time, OKB and HT continued to refresh the new high in the year, while BHT and GT also increased sharply while discounting the subscription. The linkage between IEO and platform coins has attracted the attention of many investors.
The IEO upgrade does not stop there. In September, OKEx also began to make moves, announcing the rules for upgrading OKEx Jumpstart and lowering the threshold for user participation in IEO projects. At the same time, the increased OKTraders benefit round directly links the IEO to the trading volume. The higher the cumulative spot trading volume on the OKEx, the higher the booking factor and the more credits you can enjoy in the IEO. After the launch of the new rules, OKEx's IEO platform has significantly enhanced the ability to retain platform traffic, and enjoy more benefits in OKEx trading. In the battle for stock users, OKEx's position guardian strategy is more likely to be long-term users.
Jay Hao said:
“Objectively, IEO does have the effect of attracting traffic; but IEO’s access to traffic is only the beginning, and more consideration should be given to how to provide longer-term support for quality projects.”
In contrast, Gate.io is more directly "rude" and directly announced that it will launch five mainstream white discount benefits subscriptions in October. Although the discount is not so big, but 20% off the purchase of BTC, LTC and other mainstream currencies is a real "buy to earn". According to Gate's official website information, the Startup activity runs through the entire October, and old users can naturally benefit, but many new users may also join in a wave of wool. As for the final conversion rate, how much new traffic is added depends on the actual results.
Comparing these patterns, Jay Hao concludes:
“The discounted sales of new projects are the benefits that the exchanges strive for users based on their own brand premiums. As for discounted mainstream currencies, more is a marketing effect.”
Fighting price service, big robbing bayonet
The IEO battlefields are all on the platform, and in the big competition, the competition is getting hotter.
Large and professional trading institutions have always been the slogan of the competition platform. After all, a quantitative company's trading volume for a few days may be worth a few hundred ordinary investors for one month. Lowering transaction fees has become the most direct method. Among the three exchanges, the fire currency took the lead in the 6th anniversary of September 27th, and the professional user rate dropped by 30%. The minimum handling fee was about half of the currency and OKEx. In addition to the previous "His VIP is my VIP" campaign, a combination of punches is full of power.
For the exchange, the transaction fee is the most fundamental mode. The fire currency is the first to take the shot. What are the competitors' responses? OKEx, one of the Top 3, doesn't seem to mean the fight. However, according to Jay Hao, OKEx has always had the lowest overall rate in the industry. He pointed out: "For ordinary users of currency transactions, the rate of OKEx LV.1-LV.3 is lower than that of friends, not to mention the base rate. For professional users, OKEx VIP. The pending order fees for the above 4 grades are also lower than the friends."
Although the CEO of the Firecoin Global Station, Qi Ye, denied that he had provoked a price war, he said that the fire currency was due to the decline in industry rates, so the cost was lowered to maintain balance. In the words of both sides, let us see the shadow of the price war. Come and go, you chase after me.
Rates are on the one hand, and many exchanges are beginning to work on services. Gate did not continue to use the price, but chose to launch VIP customer exclusive rights service, providing one-to-one exclusive service to VIP customers. On September 26th, CoinEx also announced the exclusive rights of major online customers and provided a series of exclusive services.
In the cow, I am waiting for you in Wuzhen.
The exchanges operate frequently and can't cover the cold of the market. Time is about to enter the fourth quarter of 2019. After the enthusiasm of Bitcoin returning to 14,000 US dollars at the end of June, July and August are like a basin of warm water, cold water slowly pouring down, the market continues to cool down; 9·25 plunging is like a basin of ice water, instantly let investment The awakening, the suspicion of the bulls coming to the market flooded the market. Under the tumultuous decline, many investors have been ruined for one year and have to bear the double blow of financial and spiritual. Some practitioners are inevitably pessimistic and worried about the prospects of the blockchain industry.
On November 8-9, Babbitt will hold the 2019 World Blockchain Conference Wuwu in Wuzhen. With the theme of “Application Unbounded”, this conference invited more than 100 global blockchain practitioners to discuss the application of blockchain technology around the application of blockchain, technology frontiers, industry trends and hot issues. Exchange giants, fire coins, OKEx and other exchange giants will also gather in Wuzhen, the exchange of exchanges.
What will happen to the market? Is the peak circuit, or is it winter? Babbitt invites you to gather in Wuzhen, looking for new ideas and new inspirations in the thoughts, self-reflection and self-cultivation in the collision of ideas.
The application is unbounded and breaks the border. On November 8, we met in Wuzhen.
The 2nd World Blockchain Conference·Wuzhen official website has been launched ( https://www.8btc.com/wbc-2019 ), please click on the link to link the latest news of the conference.