Update: Within minutes of this CCI article Koinex made an announcement of crypto-crypto trading pairs. Koinex is launching 15 trading pairs with BTC and ETH.
You all heard the announcement, Koinex is going to be down for 2 hours from 8 PM to 10 PM today for a ‘New offering’.
All trading activities will be temporarily halted on our web and mobile app between 8pm – 10pm tonight (April 26, 2018), as we gear up for the launch of our new offering. Watch this space for more updates! #whatsnextonkoinex #letstradecrypto #blockchaintechnology #cryptocurrency
— Koinex (@koinexindia) April 26, 2018
A lot of us in the community believe it is going to be Crypto-Crypto market. Here’s the rationale behind it.
Eliminating the Obvious
Before assuming anything big, we must always remove the most common possibilities. In Koinex’s case the common possibilities are
- iOS app launch
- Launching new coins
We have been waiting for the iOS app for many months now. The android app launched in early February. However, the iOS app launch does not need shutting down trading. Hence it is out of picture.
Secondly, we have seen in the past with Koinex as well as other exchanges that launching new markets also do not need trading to be halted across the platform.
When Coindelta launched 10 coins together, the just made a twitter announcement, no downtime. Same goes with Koinex when they launched 3 tokens together on March 01.
A bunch of 3 Koins coming up together: @golemproject ( $GNT ), @AttentionToken ( $BAT ) and @aetrnty ( $AE ). Deposits for the three tokens go live at 10.00 PM tonight and trading goes live at 10.15 PM tonight.#blockchain #letstradecrypto #whatsnextonkoinex #cryptocurrency
— Koinex (@koinexindia) March 1, 2018
No Margin Trading
Margin trading requires a special license that none of the exchanges have.
I get it, Crypto is not regulated, but a company like Koinex will not risk it. Koinex is playing safe in all aspects of crypto trading. For example, collecting all fees in INR only. No hassle of conversion.
You can argue that Bitbns has a margin trading feature, but let me tell you, Bitbns’s margin trading does not involve even 1 rupee worth of tokens from the exchange. It is simply a borrowing and lending model between 2 users. If there is no one to lend, you cannot borrow. It is not a true margin model, but it is better than nothing.
For regulatory reasons, I do not think Koinex will launch Margin Trading.
Trading is Halted when the entire Trading system needs overhaul
Traditionally, exchanges stop trading for major system upgrades. Obviously that is not the case as Koinex has already announced that the downtime is to launch ‘New offerings’.
The last time the trading was halted, Koinex introduced Stop Limit Orders.
The curtain drops on our trading at 11:30 PM tonight (March 28, 2018). Stay tuned for the curtain raiser; trading resumes at 12:01 AM (March 29, 2018). Note that all deposits and withdrawals will continue to remain active. #whatsnextonkoinex #letstradecrypto #Blockchain #crypto
— Koinex (@koinexindia) March 28, 2018
Eliminating a Few More Choices
- Koinex launching its own Coin – Not possible as I said before, Koinex plays safe when it comes to business. They will not risk introducing a token in the current regulatory environment.
- The exchange launches a new referral program – Again, something that is not required.
- Market Orders – Okay I have to admit, this is a possibility. Market orders help traders immediately buy crypto without having to enter prices and do complex calculations. It cannot be ruled out but still does not require 2 hours downtime.
Crypto to Crypto Exchange
Now, the arguments for the motion
- The uncertainty with regulations in India has lead many to explore other avenues. Zebpay launched Crypto-Crypto exchange as well, Coindelta already has one and sooner or later, everyone will follow suit.
- Koinex is going global. We reported earlier about a job opening for developers to develop ‘Global Blockchain Product’. Crypto-Crypto is a good enough global product and now is as good as any other time to begin laying ground work in India.
- Closing of Bank accounts – Koinex’s banks are giving up, in the last week, Koinex changed their bank account all of a sudden, and the new bank account is also reportedly frozen. If my assumption is right, Koinex has no active bank account or they would prefer to not use the one they already have. INR deposits have been shut down too. It is likely that Koinex will launch a Crypto-Crypto market to get users to start trading in coins rather than fiat.
Whether it will be a BTC pair, ETH pair, both or any to any pair, we can’t be certain. But all the evidence is pointing to a possibility of Crypto to Crypto trade engine and/or Market order facility. The former has a better chance.
What do you think Koinex is launching tonight? Let us know in the comments below and share this article to find out what your friends think