Giveaways have become a trend these days in India. Almost all exchanges are doing giveaways or massive referrals. The giveaways though come with conditions. Conditions to trade.
Trading based giveaways are not new in the cryptoverse globally. It is no longer new in India too. The biggest giveaways are happening in India and the amounts are going into lakhs of rupees.
But there was one exchange who started this and have given away Rs. 2.12 Lakhs. WazirX. They seem to have perfected the formula for them and others.
The First Trading Based Giveaway
Before WazirX’s now famous #HighestTraderKaun contest, the exchanges relied on referral program to bring traders on their platform. Unocoin, Zebpay, Koinex and even WazirX had referral programs, some of them still running.
It all changed when WazirX launched a new trading competition – based on number of trades instead of the volume.
On April 12, WazirX announced their first highest trader bounty for ETH trading. Since then it has continued for every asset listed on WazirX.
The competition seemed illogical so to speak. Someone would win Rs 5000 worth of ETH, someone who just have to pull a few hundred orders of 0.1 ETH. Not just that, the second and the third rank holders will get Rs. 3000 and Rs. 2000 worth of ETH respectively.
That prospect is one of loss. A whopping loss of Rs 10000/-. At the time the trading fees on WazirX weren’t profitable as well. Maker got a bonus of 0.2% while taker paid 0.25%. However, the whole point was to get traders on the platform.
And it was a success. A 100 ETH were traded in 2 hours. Lots of people, including me, were curious to try our luck. I remember pulling off 450 trades and yet ranking sixth in the competition.
A Clever Business plan
After the ETH trading contest, WazirX kept launching new coins and introducing Highest trader contests with it. Not only did WazirX give prizes to traders with highest number of traders, they introduced the bounty for high volume traders too.
After ETH, there was XRP, another successful campaign. Again, WazirX wouldn’t make any money off of fees as makers still got a bonus cut out of the taker fees.
But if you look at the history clearly, a pattern seems to emerge. One that can turn these competitions profitable.
Soon, the maker bonus was removed. But Zero fee trades were introduced followed by a model with fee for both makers and takers.
The trading rewards were increased with more opportunities for winners. WazirX was just getting you hooked to trading during the competition, and hooked we all were. Every new listing, people gear up for winning trading competition between 9 PM and 11 PM on the same day.
A cherry on top – WazirX never announced the results publicly, keeping the suspense brewing.
WazirX trade volumes on these days cannot be dismissed. Most exchanges are not able to pull such volumes within 24 hours. Unless, they started having their own trading competition, which they did.
Many Exchanges Followed Suit
Bitbns was the first to introduce Highest trader contest along with WazirX. Unlike the fixed timings of WazirX between 9 PM and 11 PM, Bitbns spiced things up a bit.
At first the trading competitions were at the same time, then three hour long, then day long and week long trading competitions were announced.
Trade and win ~ ₹9500 worth of waves coins.
— Bitbns (No, not giving away ETH) (@bitbns) April 27, 2018
Exchanges then started giving out rewards for Deposits. Bitbns, Coindcx, KoinOK are some of the exchanges that gave bonus coins/token for a minimum deposit or highest deposits rewards.
More exchanges started doing trading competitions. The new exchanges like Pexo jumped in the bandwagon as well with Rs. 50000 worth of giveaway.
All of these competitions are held with one goal – Get more traders on the platform.
With Koinex’s Rs 50 lakh worth of giveaway, we can only hope the trading reward programs get more innovative and attractive in the future. But it all started with a simple plan to give a lot of money to people who makes a lot of trades on WazirX.
No Highest Trader Contest for the new Listing on WazirX
WazirX listed NULS today. But surprisingly there is no announcement for Highest Trader contest. Have they stopped it?
When I reached out to Nischal, he told me they “might hold it later during the week”.
This will be the first time WazirX has not launched a Highest Trader contest since the inception of it. We hope this is not the end.
What do you think about WazirX’s giveaways? Let us know in the comments below