Coinpark is a cryptoasset exchange located in China. Their volume over the last 24 hours is $692.28M. The exchange is rated “C” which means “Fair.” They are a crypto-only exchange.
|1st 1D Candle||May '19|
|1st Orderbook||Jun '19|
CoinPark is a centralized exchange that was founded in 2018 in Taiwan. The company behind the platform is Chiying Technology Co., Ltd. The project is also backed by many different investors. At the time of writing, about 40 cryptocurrencies are traded on the platform making up 50+ trading pairs. The team of the project promises free listing and top media outlets exposure along with the attention of a million users.
The team of the company has come up with a top-order matching system that is able to cope with a million TPS, as the official website of the platform says. High speed and stable performance provide the efficiency of transactions on the CoinPark exchange.
Locking of CP, the native tokens of the platform, is available for all members of the community. The platform offers margin trading with 3x leverage. It’s possible to borrow USDT on the platform through pledging BTC.
The exchange regularly organizes airdropping events of new tokens. The users, for instance, could participate in “Check-in to win” events using 2,000 CP tokens to register sharing CP in the prize pool. Those who checked-in during the event were awarded an extra surprise. During the event in March 2019, all rewards given by CoinPark exceeded the total value of 50 ETH with over 2600 Golden eggs and 6000 Silver eggs included.
After the platform was launched, it actively supported new users who could enjoy no transaction fees during the first 30 days in the trading zone with an overall trading limit of 50 BTC. It was also possible to raise the limit to 75 BTC for those who actively invited friends.
When the exchange was launched, the company assured that it is going to be a new generation of exchange with its own unique sustainable ecosystem. They meant a trans-fee mining scheme by that.
CoinPark business model
The major exchanges with high liquidity offer a clear business model. However, new players on the market often employ new marketing schemes, and CoinPark is an example of such a case. It was a relatively new model in 2018. Now it is employed by a range of cryptocurrency exchanges including, for instance, FCoin.
This is a platform that was launched by a former technical specialist of Huobi and one of the first exchanges that employed fee mining. This is a method that implies the tokens distribution as a reward for trading. Rewards stimulate trading, provide a decrease in the cost of trading. And the internal coins of the exchange can be redeemed to pay commissions, or saved by a trader with the hope of selling them for higher prices.
This trend came from Asia, particularly China. The method was generated as a response to new cryptocurrency regulations in the region and became an ideal solution to bypass the ICO ban. This method of mining is often criticized for several reasons. Critics say that traders can artificially inflate trading volumes and mine through bots. They also emphasize the fact that a strong referral system gives suspicions of a pyramid. Despite all criticism, the model showed its efficacy. Apart from FCoin and CoinPark, the method was successfully implemented by marketers on such exchanges as Coinbene and Bit-Z and has become a new way of promotion for platforms. The benefits of its use are evident as it provides obvious profit or cost savings.
The trading process is closely associated with a mining process on CoinPark. The traders just need to trade to be considered miners. The distribution of the exchange’s earnings occurs on a daily basis between users.
The platform has an active CP partner system with a goal of building “a symbiotic ecology” with a very low trading fee going below 0.03%, while the referral bonus of the platform’s customers can reach 80%. The usual fee is flat on the platform for makers and takers and makes up 0,10%.
The popularity of the platform and the activity of users is associated with the referral program. CoinPark awards 100% of the platform's proceeds as dividends to users who hold CP for 2 weeks. The percentage was adjusted up to 90% later. 24 times a day, i.e. every hour, a snapshot of the CP account is taken to calculate each credit limit and distribute the bonus rewards.
For invited users, the members of the ecosystem receive a reward from each transaction carried out by these users. The reward share of the discount is dynamically adjusted based on the total CP turnover. The reward is converted to CP the next day. Also, CP holders can participate in decision making thus contributing to the governance of the platform.
The exchange is mainly focused on Asia (Japanese, Chinese, and Korean users). There is an English version of the website as well. The platform employs “the customer first” principle offering the service of its customer support round-the-clock. Customers complained that there was no stability in the way the dividends are accrued. There is no information if this is a common problem for the platform.
The platform issued its own token, which is called CoinPark Token (CP) which is a standard ERC20 token. The total volume of issued coins is 10 billion CP. There are three ways to get CP tokens: through the transaction fee mining, the referral plan, or through purchasing CP tokens on the exchange.
CP is distributed according to the "transaction is mining" method. Out of 10 billion tokens issued, 60% are allocated for miners, and the remaining 40% are pre-issued and frozen. CP distribution is the following: miners received 60%, CP fund obtained 22%, the team obtained 12% of tokens, which is a large percentage, while 6% was allocated for private accommodation. The platform employs the burning model destroying CP tokens. At the time of writing, the platform has conducted 18 burning sessions already.
There is no information about the key figures of the project but it seems to be rather reputed in the cryptocurrency industry. Early investors of the platform include such companies as FBG Capital, 8 Decimal Capital, BlockWater Capital, DHVC, Divergence Digital Currency (DDC）Fund, Node Capital, BlockVC, and PreAangel. The company received the key tech support from the cryptocurrency veterans at Bibox.Read More