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Topic: Exchanges decision to support Bcash might backfire now and help BTC (Read 1234 times)

legendary
Activity: 1218
Merit: 1007
Just look at Cryptocompare trading volumes for Bcash. On Bitfinex only BCH volume 24H is more than $18 million.  It's roughly thousands dollar trading fees per hour. I don't think it's a revenue that exchange business would shrug off as negligible.
It might not be negligible value that can be generated, but you have to remind yourself that a lot of exchanges are not as big as Bitfinex and thus their expected revenue from BCC fees would be relatively lower than a few thousand per hour. But at the same time exchanges, when they take fees for both buying and selling, need to be sure they will actually make money off of selling their BCC and they won't lose the money they were gleaning on fees.

It makes sense really, no point throwing what might end up a shitcoin onto an otherwise reputable exchange. There might not be a long enough life for BCC to justify adding it to most exchanges.
hero member
Activity: 2814
Merit: 911
Have Fun )@@( Stay Safe
Why would you want to support a new Alt coin, if you know people will only be hyping/pumping the price in the beginning and other people will be dumping it for BTC and Fiat? This will have a significant impact on your bank balance, when you allow trades during this "Pump" period.
How does any of these things will hurt an exchange,i really do not get what you are talking about here,do you really think that the coins being dumped are being purchased by the exchanges.  Cheesy  Tongue traders are picking up the coins that are being dumped and the exchange is earning a good amount of money as commission and so it is a win situation for the exchanges and not the other way around.
hero member
Activity: 756
Merit: 502
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i don't see any any reason why would an exchange refuse to add in in their list of cryptocoins. the exchanges profits from the trading fees

There's a lot of money to be made from the trading fees, sure. I figured that the reason Poloniex might not want to add it at first was that their major markets all trade against BTC. So any potentially severe network split or confusion around what "BTC" is threatens them from a custodial and legal standpoint. I think now that it's pretty clear that BCC can't overtake BTC, they are fine with adding the new market.
hero member
Activity: 2786
Merit: 902
yesssir! 🫡
well op has a point but in the first place for an altcoin to grow, it needs an exchange site particularly with large volume as we all know trades is the most efficient way to circulate

it so i don't see any any reason why would an exchange refuse to add in in their list of cryptocoins. the exchanges profits from the trading fees so if people continues and wants

to do trade with this particular coin they will gain profits, and thats another reason why it would benefit the certain exchange.
hero member
Activity: 756
Merit: 502
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Poloniex in the next exchange to announce that they are supporting BCC and will have it for trading by August 14. We have never seen instant support by the exchanges for an altcoin before.

Poloniex supported ETC pretty much instantly, actually. Within a day, I believe, and they definitely encouraged other exchanges to add it by doing so. I'm surprised that with all these exchanges supporting BCC, and with the price still managing to stay in the $200s, that Bitcoin continues to rally to new highs. Such interesting action. I would have thought more people would be scared by a network split (even if a small one). I was wrong yet again it seems. Cheesy
hero member
Activity: 574
Merit: 500
It's called Bitcoin Cash. There is already another bcash project so leave them out of it.
hero member
Activity: 742
Merit: 500
Why would you want to support a new Alt coin, if you know people will only be hyping/pumping the price in the beginning and other people will be dumping it for BTC and Fiat? This will have a significant impact on your bank balance, when you allow trades during this "Pump" period.

Yes, you might get the advantage that new users will join your exchange, because you are the only exchange accepting Bcash trades, but those users will leave once they dumped their Bcash for cash or BTC.

If I were a exchange owner, I would just sit back and wait for other exchanges to take the knock and jump in later when the price is much lower. < Like Coinbase is doing >

It makes no sense to be a early adopter of a coin that are pumped to shit in the early days. ^hmmmmm^

The BTC price will also be less volatile with everyone buying & selling BCC/BCH and not buying & selling BTC.
Coin base investors ar already not happy with its decision of not supporting BCC.Some have even threatened that they would even sue against it for not giving them their free BCC.Kraken had also taken the same decision before.But now,Coin base has said that it would allow BCC trading in order to attract more customers who are willing to sell their BCC as they are not able to find any platforms or exchanges to sell BCC.Poloniex has already said that they would wait and watch and then decide.But till now,they have not announced any thing.
sr. member
Activity: 868
Merit: 259
Poloniex in the next exchange to announce that they are supporting BCC and will have it for trading by August 14. We have never seen instant support by the exchanges for an altcoin before.
full member
Activity: 152
Merit: 100
Just look at Cryptocompare trading volumes for Bcash. On Bitfinex only BCH volume 24H is more than $18 million.  It's roughly thousands dollar trading fees per hour. I don't think it's a revenue that exchange business would shrug off as negligible.
full member
Activity: 252
Merit: 100
Exchanges doesn't care with every coin price, they are only third party, so what they do only prepare some resource for trading then find some coin with highest volume and Walaaaaa magic happening, every transactions is profit
ex:poloniex with their tons of Sh!!!T coin.
sr. member
Activity: 434
Merit: 252
Now constantly come to contradictory information. Some exchanges refuse to support bitcoin with cash, others are paused and waiting for clarification. Those who trade in that currency do not work on Commission because I do not believe that people will buy these coins.
member
Activity: 76
Merit: 101
To be honest Bch has too much support for a new coin. Behind this there must be big companies and huge hedge holders and market twisters. For one coin to hit one billion market cap early in its inception speaks volumes.
legendary
Activity: 1134
Merit: 1010
BTC to the moon is inevitable...
the risk that i can think of is the deposit risks like double spending or other serious bugs that can lead to loss of funds in their wallets.

so far they have kept the deposits disabled which saves them a lot and removes any incentive to perform a 51% attack. in the future when they enable it this may become a problem but like any other altcoin with small hashrate they can just ask for more confirmation to reduce the risk.

The network is much more stable now because difficulty retargeted downwards. That means the risk of double spending is also much lower now. Accordingly, I believe most exchanges are now accepting deposits (albeit with a larger number of confirmations than BTC deposits).

I think a 51% attack at this point is unlikely. Aside from being unethical (Bcash users will be attacked), the fork just isn't much of a threat. I'm much more concerned about the November hard fork threat from btc1...

double spend and 51% attacks have nothing to do with stability of the chain. it has to do with how much hashrate that chain has and how much other people have in comparison.

for example if an cryptocurrency has 100 unit of hashrate and there is total of 200 unit of hashrate available in total elsewhere there is a big risk of 51% attack because that 200 can switch and attack it. that is what happens with a lot of small altcoins.

now some real numbers:
right now bitcoin has about 6 Exa hash (6*10^18)
and according to bitinfocharts BCH has 400 Peta (400 * 10^15 = 0.4*10^18)
(hope i didn't make a mistake Cheesy) and that is 6.66% of total
https://bitinfocharts.com/comparison/hashrate-btc-bcc.html
sr. member
Activity: 516
Merit: 250
Exchange fees is freeeeeee moneeeeeeeeey guys  Grin Why would they want to miss out on those?

Agree with you, exchanges get money from the fee and actually the exchanges only provide the place to trade and the people itself that also buy the bitcoin cash. So what backfire that exchanges got ? I think exchanges are the most profit one though. Even if the bitcoin cash down fall so hard, it will not affect the exchanges.
hero member
Activity: 826
Merit: 508
the risk that i can think of is the deposit risks like double spending or other serious bugs that can lead to loss of funds in their wallets.

so far they have kept the deposits disabled which saves them a lot and removes any incentive to perform a 51% attack. in the future when they enable it this may become a problem but like any other altcoin with small hashrate they can just ask for more confirmation to reduce the risk.

The network is much more stable now because difficulty retargeted downwards. That means the risk of double spending is also much lower now. Accordingly, I believe most exchanges are now accepting deposits (albeit with a larger number of confirmations than BTC deposits).

I think a 51% attack at this point is unlikely. Aside from being unethical (Bcash users will be attacked), the fork just isn't much of a threat. I'm much more concerned about the November hard fork threat from btc1...
full member
Activity: 378
Merit: 101
Exchange fees is freeeeeee moneeeeeeeeey guys  Grin Why would they want to miss out on those?

I wont,I am in. Once the sell off frenzy has died, i will be buying too. Some people are destined to be broke, they are busy picking sides instead of positioning themselves to make lots of profits.
full member
Activity: 364
Merit: 130
I think the decision of the bourse to support the bch is not done without a certain calculation, so they can see how big the money spin will be with the new coin, so that it will have an impact on their own profit rather than backfire for them. And I do not think this will affect the bitcoin at all.
legendary
Activity: 2604
Merit: 1036
Exchange fees is freeeeeee moneeeeeeeeey guys  Grin Why would they want to miss out on those?
legendary
Activity: 1134
Merit: 1010
BTC to the moon is inevitable...
if they are careful i don't think it can. the risk that i can think of is the deposit risks like double spending or other serious bugs that can lead to loss of funds in their wallets.
so far they have kept the deposits disabled which saves them a lot and removes any incentive to perform a 51% attack. in the future when they enable it this may become a problem but like any other altcoin with small hashrate they can just ask for more confirmation to reduce the risk.
hero member
Activity: 756
Merit: 502
CryptoTalk.Org - Get Paid for every Post!
If I were a exchange owner, I would just sit back and wait for other exchanges to take the knock and jump in later when the price is much lower. < Like Coinbase is doing >

It makes no sense to be a early adopter of a coin that are pumped to shit in the early days. ^hmmmmm^

I suppose it makes sense if you can take a big piece of the total market share. With the initial rush to dump, there is a lot of volume to potentially soak up. I'm sure this is why Bitfinex announced support for this alt. They didn't want Kraken taking the volume.

Bitfinex has other reasons to support it. They need to remain relevant and keep volumes up. They have been silent about their complete inability to transfer fiat money in or out of the exchange, so they are focusing on new alt markets and gimmicks. Now "ethfinex": https://www.bitfinex.com/ethfinex
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