Two exchanges have recently rocketed to the top of the 24-hour trading volume rankings after using the new business model, according to CoinMarketCap.
The trading volume on CoinBene, based in Singapore, is now about $2 billion, whereas on Hong Kong’s Bit-Z the number is around $1.5 billion – both well ahead of the $1 billion in volume shared by Binance.
First represented by FCoin, a new exchange started in May by a former CTO of Huobi, the trans-fee mining model sees crypto exchanges issue their own tokens as a means to induce users to trade on the platform.
In Bit-Z’s example the platform plans to produce its BZ token with a maximum total issuance of 300 million. For every transaction fee a user pays to Bit-Z using BTC or ETH9, the platform will compensate 100 percent of the value in its token.
There are some controversies related to the new model. Some experts are concerned that it might induce users to create fake transactions using bots in an effort to get the tokens issued by exchanges.
Last month the media in China alleged that the model is an ICO and that the price of the token may be exploited by exchanges. Binance’s CEO Zhao Changpeng expressed doubts whether the model is viable in the durable period.