FCoin, one of the largest Chinese exchange platforms, created high volume last week. The high FT (FCoin Token) transaction volume caused people to believe FT was involved in price manipulation because of high transaction fees.
Once customers begin trading tokens on FCoin platform, the transaction fees will be converted into FT in the daily average price and returned to the customers. The business model has helped acquire many traders, and it changes the relationship between customers and producers. The FCoin trading platform returns the profits from exchanges, so the amount of users becomes the most important factor that impacts FT.
Some users start raising questions about the large transaction volume. A poster Reddit wrote that “orders of 5, 7, 10, 15, 20 fly across the screen such that over 6 billion USD in ‘transactions’ can be completed in a 24 hour period on FT (Fcoin Token) alone.” Those trading exists “rampant levels of botting.”
Users believe that there are actual bots manipulating the FT price, and the poster said that “at its current price, it is impossible to acquire enough FT to gain enough daily rewards to offset risk”. If the price of the token decreases and transaction volume does not change, the speed of mining will increase and dividends will decrease. After that, this trading platform will have huge pressure on their economic model.
Even though FCoin officials have not replied to the poster, the FT price was sharply decreased.
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