One of India’s biggest cryptocurrency trading platforms and liquidity aggregators, CoinDCX, has announced its partnership with Malta-based exchange OKEx.
This wasn’t all, however, as the Indian exchange also announced the launch of its new DCXfutures product to cater to the increasing demands for access to Futures, Options and higher leverage trading for the Indian market.
DCXfutures will allow up to 15x leverage trading for popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC), EOS, Cardano (ADA), and Tron (TRX).
CoinDCX CEO and Co-founder Sumit Gupta welcomed the announcement and said,
“With the huge potential of cryptocurrency markets to accelerate economic growth and wealth generation in India, we believe that this collaboration takes India one step closer to joining the ‘5 trillion dollar club’ as one of the fastest-growing economies in the world, allowing us to avail of new opportunities and take on new challenges.”
Presently, the DCXfutures option can only be accessed via an invite. The press statement highlighted that the public will only have access to DCXfutures from Q2 of 2020.
Expanding on India’s potential to drive cryptocurrency adoption exponentially, Zac Zou, Head of OKEx India, said,
“India is primed to be the driving force behind the mass adoption of cryptocurrencies, which is why we are keen on adding more equitable currencies to the ecosystem.”
This announcement comes on the heels of the Malta-based exchange Binance announcing that it is integrating its P2P trading platform with one of India’s largest crypto-exchanges, WazirX. With a rise in the number of exchanges based out of India partnering with global exchanges, the regulatory landscape for crypto looks fairly positive in the country. India continues to have a rather large unbanked demographic that can in the long run, benefit from exposure to digital assets.
OKEx Partners Up With CoinDCX To Expand Into Indian Crypto Market
India’s crypto regulation is subject to significant uncertainty, as legal disputes are prolific. The Reserve Bank of India, or RBI, didn’t have the authority to ban cryptocurrencies as a whole, but it did have the power to ban all regulated firms from allowing its use. Meaning, no crypto company was allowed to use the country’s banking features. However, major crypto exchanges across the world would be blind to see the massive demand for crypto services, circumnavigating the crypto ban with Decentralised Exchanges, or DEXs.
OKEx And CoinDCX
OKEx is the latest major exchange to do this, having partnered up with CoinDCX, one of India’s largest crypto trading platforms. Through this partnership, OKEx plans on delivering crypto futures products to a new market of Indian customers.
The partnership goes two-fold. OKEx spreads into a new market, and CoinDCX will boost the liquidity of the platform. Furthermore, CoinDCX will gain a considerable boost in developers as the company lends it, its aid.
As a celebration for the new partnership, a new crypto futures product will be pushed out by CoinDCX: DCXfutures. As infinitely creative as the name is, it will allow the DEX’s users to trade in futures contracts of the primary forms of crypto, with allowed leverage of 15x.
As the firm explains it, the futures contracts will have a minimum of eight coins supported in its product range. These coins cover the majority of the world’s top crypto, with Ethereum (ETH), Litecoin (LTC), Cardano (ADA), Tron (TRX), EOS, and the classics, Bitcoin (BTC) and Bitcoin Cash (BCH). The users will further be capable of trading in perpetual futures contracts, but only in Bitcoin and Ether.
Demand Through Regulation
As the firm explains, the maker fees will clock in at 0.2% in the very start of the DCXFutures launch. Furthermore, the new product range will only be available to a select amount of users based on invitations only. When the general public accesses it, users will be capable of accessing DCXfutures from a single wallet. The estimated time for this to happen is scheduled at Q2 2020.
CoinDCX isn’t the first DEX to be scooped up by a significant group, however. The trendsetter for this matter is none other than Binance. Make no mistake, this is a corporate war in and of itself, with a market made through the general rejection of crypto in the country’s legislation.
OKEx to introduce Maker’s DSR to the Asian market
MakerDAO has been in the news lately for both good and bad reasons. The launch of Multi-Collateral Dai [MCD] put the platform under the spotlight, following which, a research piece by Coinmonks contested the governance system of MakerDAO that allows MKR token holders to be the decisive agent for the upgrades through votes. However, the Maker Foundation later suggested that this is highly unlikely considering MKR token’s liquidity while conducting a poll about the same. MakerDAO has paved its way into the crypto-spotlight again after announcing its partnership with OKEx.
As per the announcement, the Foundation has partnered with Malta-based cryptocurrency exchange, OKEx, to give Asians access to Maker’s Dai Savings Rate [DSR]. OKEx will reportedly be the “first major platform” to integrate the DSR. Starting from 23 December, users of the OKEx platform would be able to earn savings rate by depositing Dai and staking it in the DSR. Further, OKEx users would also be given an “additional reward.”
DSR is said to utilize OKEx’s Pool feature as it is a “mining pool with a staking service that encourages long-term asset holding and offers users rewards.” The announcement further read,
“With Pool’s integration of Dai, OKEx account holders can deposit Dai where they’re able to stake it into the DSR. Once staked, users earn the Dai Savings Rate, plus a reward, courtesy of OKEx.”
OKEx also released a blog post announcing the same and suggested that users, for instance, could acquire 104 DAI after 12 months after staking 100 DAI with a 4 percent annualized yield.
Source – OKEx Support
In yet another update, the Maker Foundation has anchored another set of Governance Polls into its voting system. The latest governance poll is said to address Dai Savings Rate [DSR] adjustment, Dai stability fee adjustment, along with Sai stability fee adjustment. As per MakerDAO’s blog post, MKR token holders would be able to vote for potential DSR options ranging from 0% to 8%. The Dai stability fee adjustment option also has the same range as the DSR. However, for the Sai stability fee adjustment, voters can signal their support within the range of 1% to 7%.
Furthermore, the governance poll for all the three upgrades would be running for three days starting from 5 PM UTC on 16 December. The post added,
“…the results of which may inform an Executive Vote which will go live on Friday, December 20, at 5 PM UTC.”
Bitwise Report 2.0: HitBTC, Huobi, and OKEx skirt the line between fake and real volume
Cryptocurrency exchanges have been under the microscope for several months, with the upswing in Bitcoin’s [BTC] price contributing to certain platforms fudging their numbers. Several reports and research pieces have surfaced, classifying exchanges between those having “real” and “fake” volumes.
The most prominent report was issued by Bitwise Asset Management, which strictly stated that only 10 exchanges had “real” volume, while the other 95 percent were fake. However, in a recent report, the Bitcoin ETF hopefuls have highlighted three exchanges that have “fake volume with possible real-world footprints”.
According to Bitwise, the exchanges that skirt the defined lines between the “real” and the “fake” were HitBTC, Huobi, and OKEx.
The firm’s March report addressed to the US Securities and Exchange Commission highlighted 10 exchanges with real volume. However, following public requests, the firm in a subsequent report highlighted three exchanges with “meaning volume”.
Firstly, the report analyzed the trade volume percentage on an exchange, depending on a specific trade size over a defined period. Citing this trade size histogram for OKEx, the report stated that the same is “notably suspicious,” as it had no absolute spikes and an “atypical rise” in volume from 1-6 BTC. The exchange’s trade distribution also showed an “unusual” tail from 6 Bitcoins.
In terms of volume spikes from 28 April to 5 May, the graph depicted constant hourly volume which according to Bitwise, “betrays none of the natural rhythms of the reference exchanges.” The “reference exchanges,” are the 10 exchanges that Bitwise has contended as having “real volume.”
On the topic of OKEx’s trade volume, the report quite clearly spelled,
“While there may be a smattering of real bitcoin volume on OKEx, the charts are clear: the vast majority of bitcoin volume here is entirely fake.”
HitBTC, which is rumored to be in liquidation woes, was also labeled as having “entirely fake” volume. The trade size histogram showed an “eerily flat line,” posting no volume after 0.5 BTC. The exchange’s hourly volume shows complete disparity with the reference exchanges, with most volume activity concentrated between April 29-30.
Bitwise added that market events which affected the volume of the “real” exchanges did not impact HitBTC and hence, the report read,
“We believe HitBTC’s volume is predominantly wash trading, done in small trade sizes.”
Huobi’s trading and volume pattern according to the study, was the “trickiest,” Bitwise stated. Prior to their March study being released, the Trade Size Histogram showed a “highly anomalous pattern.” The chart shows an increase in trade volume between 5-11 BTC, where “very little trade volume occurs.”
Prior to the release of the Bitwise report, from 3 March to 21 March, the exchange’s Trade Size Histogram showed a “consistent pattern,” which “completely disappeared within three weeks.” The report contends that those, at Huobi, engaged in “wash trading,” cleaned up their act to temporarily portray a change in trades to avoid “detection.”
The report cautioned,
Several reports have also supported Bitwise’s claims that the three exchanges fake their volume, although not completely. The report cited studies from the Blockchain Transparency Institute, The Tie and Sylvain Ribes. Compiling a simple weighted average of the estimates by the aforementioned reports, Bitwise concluded that the “estimated real volume” of HitBTC, Huobi and OKEx were,
To put these numbers in perspective, according to CoinMarketCap, HitBTC, Huobi Global and OKEx had $1.63 billion, $1.97 billion and $2.57 billion, respectively, in reported trade volume over the past 24 hours.