FCoin, a China-based cryptocurrency exchange, has just announced that users can withdraw IOTA’s currency (MIOTA) starting today.
The crypto exchange was founded by the former chief technology officer at Huobi, Zhang Jian. Launched in May 2018, it was subject to a fair amount of controversy due to its unique business model. It allows users to obtain the exchange’s cryptocurrency, FT by trading, basically turning cryptocurrency trading into mining. 51% of the FT token supply is only accessible through trading, in a system called “transaction-fee mining” or “trans-mining”.
Transaction fees for using the platform are paid using cryptocurrency. The caveat is that FCoin pays back 100% of this fee in the form of its own token, FT. According to the CEO of Binance, Changpeng Zhao, the business model essentially allows users to buy the platform’s tokens using BTC or ETH, turning it into an ICO.
Regardless of its contentious position among cryptocurrency exchanges, FCoin is well-known. It is listed on Coinmarketcap as an exchange, with a total trading volume of 205,706 BTC or $2,320,990,196 USD.
Therefore, this announcement can be considered good for IOTA as a cryptocurrency, especially because the currency will now be more accessible to users in East Asia.
What is IOTA?
IOTA is built on the principle that machines and devices are used in every aspect of our lives, be it a simple vending machine, or a parking meter. By interconnecting these machines, we can achieve the ‘Internet of Things’. It wishes to do this using decentralised ledger technology on its blockchain-like platform, the Tangle. The open-source protocol will facilitate Machine-to-Machine (M2M) interactions, which allow for more secure data transfer and extremely fast micropayments which do not charge any fees.