Difference between revisions of "FCoin (FT)"

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Latest revision as of 08:52, 23 January 2022

 Basics

  • Founded in:
  • Mainnet release:
  • Based in:

History

"FCoin, founded by Huobi’s former CTO, was once the hottest exchange in crypto. As far as we can tell, they brought the concept of “transaction fee mining” to the crypto ecosystem. Transaction fee mining was like Yield Farming V1 (but way more centralized and scammy).

FCoin distributed 51% of its native tokens (“FT”) to users as a way to reimburse their trading transaction fees. FCoin incentivized users to transact frequently since the platform reimbursed 100% of the transaction fees that users paid with FT tokens. 80% of the exchange’s daily revenue from transaction fees were paid back to users in the form of FT tokens.

In the FT white paper (which belongs in a cryptocurrency history museum) they described this process as: 

“Most importantly, FCoin has pioneered the “Trans-Fee mining” model, in which more than half of the platform’s total FTs will be rewarded to the community’s users to offset 100% of their transaction costs. In an unprecedented fashion, the FCoin community will distribute 80% of its revenue to FT holders.”  

This trading scheme made FCoin, at one point, the highest volume exchange in crypto. In practice, what happened with transaction fee mining was that you were participating in an “indirect ICO” (or as Binance Founder CZ called it at the time, a “disguised ICO”). 

In a typical ICO, you exchange BTC or ETH for the ICO token, usually at a fixed ratio. With FCoin, you were trading on their exchange, maybe something like the BTC/USDT pair, you paid your fee in USDT, and then received FCoin tokens (“FT”) in return. So you were giving away a token with actual value—USDT—and getting a new, arbitrary token in exchange. In practice, what caused this scheme to fail was that FCoin was minting new tokens every day to pay out the dividends, in turn increasing supply. While the mania drove an initial price spike, eventually FT crashed because of (oversimplification here) too much supply. This constant inflation decreased the token value for existing holders, giving holders more of an incentive to sell as soon as they received the FT dividend."

Token

Launch

Token allocation

Utility

Token Details

Stablecoin

Tech

  • Whitepaper can be found here.
  • Code can be viewed [insert here].
  • Built on:
  • Programming language used:

Transaction Details

How it works

Mining

Staking

Liquidity Mining

Layer Two

Different Implementations

Interoperability

Other Details

Privacy Method being used

Compliance

Oracle Method being used

Their Other Projects

DEX

Governance

DAO

Self Funding Mechanism

Upgrades

Roadmap

  • Can be found [Insert link here].

Audits

Hacks/Bugs

Usage

Projects that use or built on it

Competition

Coin Distribution

Pros and Cons

Pros

Cons

"This trading scheme made FCoin, at one point, the highest volume exchange in crypto. In practice, what happened with transaction fee mining was that you were participating in an “indirect ICO” (or as Binance Founder CZ called it at the time, a “disguised ICO”).

In a typical ICO, you exchange BTC or ETH for the ICO token, usually at a fixed ratio. With FCoin, you were trading on their exchange, maybe something like the BTC/USDT pair, you paid your fee in USDT, and then received FCoin tokens (“FT”) in return. So you were giving away a token with actual value—USDT—and getting a new, arbitrary token in exchange. In practice, what caused this scheme to fail was that FCoin was minting new tokens every day to pay out the dividends, in turn increasing supply. While the mania drove an initial price spike, eventually FT crashed because of (oversimplification here) too much supply. This constant inflation decreased the token value for existing holders, giving holders more of an incentive to sell as soon as they received the FT dividend."

Team, Funding, Partnerships, etc.

Team

  • Full team can be found [here].

Funding

=== Partners ===