A deeper look into ABCC — a new upcoming exchange
2018 overall was not the best year for growth in crypto. Most projects underperformed extremely, delivering or not delivering their product did not often make a difference. But one kind of coins stood out there — the exchange coins.
BNB as the frontrunner and basically the only Top 50 Coin that did not perform negatively over 2018 is and was a bank for sure. But this also led to the exchange flood we are seeing now. Many new exchanges came up and tried to battle to be the next Binance. To be the next success story. Most of this exchanges pretty quickly died due to no volume, listings or interests. Until there was another idea — the mining exchanges.
I would like to use Fcoin as an example here because it is probably the most known one and at its peak was even called out as the next binance. (Oh damn people really thought that!) So how did the system work? Trading fees got redistributed as an exchange token which was bought from the market. So basically while trading (whether it is real or washtrading) you paid no fees because you got them back in tokens while pushing the price of the token. So far so good this led to an 110x return of investment (at the peak) on the Fcoin price. But is this idea sustainable? No it is not.
As soon as someone starts dumping his coins and the price decreases you suddenly paid a trading fee because the coins you got are not enough to compensate you anymore. From that point on you stop washtrading and maybe even dump your coins, hence the price falls more. And the pyramid scheme starts breaking down. I would gladly show you the horrible dump of the token but the website is currently down.
So this new “ponzi-exchanges” also seemed not to be a sustainable solution, apart from some quick bucks if you bought early and sold. (but also this did not work on multiple derivatives)
So I started to look for promising exchanges, which are already in the market for a longer time than 1–2 months, have a good/decent trading volume and a sustainable system with a good and known team.
Everybody knows KuCoin, Bibox or others which are competing with Binance for longer already, but never really made it because something was missing. (besides the volume ofcourse)
Sorry for this long intro but this finally led me to check deeper into the ABCC exchange. First a weird sounding name, but easy to remember and thus a good brand. It was holding itself in the top 20 of volume for multiple days/weeks already so it got my attention.
Opening their website https://abcc.com/at_invitation/share?aff=e7f526 - the first thing you get shown is a a cool looking UI topped up with a new introduction of a Options market.
Did you see many exchanges offering options yet? Yes they are not the same as Bitmex futures but they are something which is quite commonly used in the normal FX trading. For me that sounds professional. Looking a bit deeper you also see AT-tokens and trade to mining.
Usually that would let me close it directly again. I mean who needs another “ponzi-exchange” — but decent listings and the backers made me look deeper. I mean the former minister of foreign affairs of Malta is something huge. (we all know Binance went to Malta just some time ago — guess why ;) )
ABCC exchange itself did not have an ICO — and you will also not find a direct whitepaper due to current uncertainties with China.
The exchange itself is based in Singapore but still doing its best to be compliant with all other countries. Hence profitsharing (i will explain this later in detail) excludes restricted countries.
So no ICO, big backers and a good volume since april when it officially launched. Suddenly it does look a lot better.
So I dived into the tokensystem. The exchange itself has its own AT-token which is distributed by mining.
But here comes the difference — the daily cap is limited and also the tokens are mined in blocks and are not bought on the market. This might sound bad for a shortterm pump but does at least not artificially pump the price to a point where it turns down and dumps a lot.
The token is distributed proportional to the trading volume of the traders, investors, team and the plattform.
“40% is released to traders (that’s currently 43750 AT per block ). 10% of total supply has already distributed to historical users with lockup time and no 80% trading fee sharing. 20% to the platform (which it uses to do campaigns etc.) and the rest are investors and team’s with lockup time.”
So there is daily a decent amount of AT distributed to users and the interns (with a lockup) which obviously helps the volume to keep stable. But why would you buy AT if its distributed for free and why would it be worth something?
AT-tokens allow you to profit directly with the exchange. You guys remember when KuCoin sold an ICO and also had a good pump on their KuCoinshares because they gave 50% profitsharing (in mainly dust) on a not really good volume exchange like KuCoin? Well, AT-tokens guarantee you a 80% profitsharing directly in USDT, BTC and Ethereum. (so no dust!) They also do not plan to reduce the profitsharing like for example Kucoin while also already having a much higher daily volume.
Scrolling up to the first picture — or for simplification let me show it to you again:
The current ROI of AT is around 0,16% per day which will add up to over 58,6% ROI annually. This is just a guess — because of course with daily AT-distribution for holding it your AT also will increase and thus the ROI for holding more. Is this ROI sustainable? Yes, but only if the volume is holding up or increases— otherwise more circulating coins with the same or a less amount of trading fees to be splitted will result in a reduced ROI. With an increasing volume otherwise, the ROI would even further increase.
Now we come to a thing that I like a lot - the price of AT itself is only indirectly bound to the volume and so not really a pump and dump coin. Yes it will give ROI as an important factor but it also will give you the chance of airdrops, presales and soon to be planned also a trading fee reduction (bnb style). So its an utility token with multiple benefits on top. So a high volume of the exchange is not the only variable for the price or probably even a less important one.
So in my opinion this system is longterm sustainable! Keeping the current volume up or maybe even increasing it, the exchange looks very promising.
I would compare it to a combination of Kucoin and Binance, with a good utility token and profit sharing on top included by a well thought system. The difference is that ABCC did not have an ICO for the AT token and furthermore has less problems with regulations in restricted countries and maybe overall in the future.
From a traders view the starting euphoria is gone and the bearmarket has done the rest. It looks pretty bottomed out especially having the ROI and the upcoming benefits in mind. (vouchers, winning a Tesla etc.)
So the 1d chart looks good — the usecase is big and the exchange is already running since multiple months with constantly high trading volume.
Looking into the stats page (transparency) we see:
This implies for me that due to the recent decrease of supply inflation but also reduction of the overall volume as a reaction on that the coin still has some downside. Being around the mining cost would be for me personally a good buy — otherwise mining it.
This supports my logic.
For me a hidden gem until now.
But what is an exchange if its not useable? So I sended some money on the exchange to test it out for you guys. I did some trades (HOT, ETH etc.) and the first impression is really good. The UI looks good and the matching machine, as well as the overall website, works extremly smooth and is easy to use.
The only downside are some thin orderbooks — but thats only when you are used to binance order books. ;) Comparing it with order books of smaller sized exchanges there is no difference in spread or ordersize really. And if then for sure not in a negative way.
After buying some AT-tokens I even got an “Voucher” offered that I could activate for over 100% trade to mine efficiency.
There are a bunch of cool competitions etc. to keep people there. Only the most important part — the exclusive listings or the “Gem” listings are missing.
On top API trading is currently not allowed for private people. This would of course add another bunch of volume as well as thicker orderbooks when it gets opened for everyone.
Verdict:
Is it the next Binance? NO but it has a high chance of being a very high Volume exchange. And I’m talking high volume here — not child level like Kucoin. (which already got beaten in volume by ABCC and that with near to no attention in europe so far)
So for me this is a good and strong upcoming competitor for the already settled exchanges and it easily beats most of them UI-wise (hello bittrex), systemwise (ponzis hello) and also supportwise. (always had an answer in minutes in their chat).
I personally made an account and enjoy trading here far over Kucoin, Cryptopia and all the other smaller exchanges. To make me trade here more and less on Binance though I still would like the stoploss function and special listings that I could not find there.
I will try out and test the current Beta of Options trading deeper and will let you know.
Positives:
- high constant volume (daily enough to fill the trade to mine structure)
- big backers
- longterm plan
- many promo actions
- smooth and easy to use UI
- sustainable and well thought token system
- stop loss soon to be included (which other smaller exchange offers that?)
- big variety of stablecoins
- options trading
Negatives:
- a limit of daily tokens mined with proportional splitting leads to a relative constant volume and no need to increase it for whales. So very dependent on new users
- halfing of the tokens leads to a decrease of mining power needed and thus less overall volume without new users. here I would hope for a small change of the system
- mining-exchanges have a bad reputation in combination with the “ponzi-exchanges”
- many new exchanges as competitors
- not enough single/new listings yet to make people move over. But after asking at the team they are planning to actively list new coins which would give people a good reason to move over
Constructive ideas:
- if they would increase the trade to mine energy everytime they decrease the overall output (every 120 days it halfs) they would keep up that high and steady volume while also increasing the overall value of AT tokens
- new listings of coins without real exchanges aka idex-coins and maybe even some smaller coins like POW projects
- stop loss (after it is implemented) and take profit in parallel with triggering whatever is hit first would even more set it apart as a good plattform from their smaller competitors and even Binance
If you would like to use my referal link: https://abcc.com/at_invitation/share?aff=e7f526
or the normal link — https://abcc.com
Best Regards and Happy Trading from
Bullishkid
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