From the CEO of Koindex,
Today we distributed prize winnings for the Pledge and Win campaign. We think the winners were able to win a fair prize, partly because of the soaring BTC price. Congratulations.
As you all know, the current cryptocurrency market is in a bull market.
Bitcoin is currently challenging the price during the 2017 bubble (which I dare to express), but many think it will probably hit a new all time high in the near future.
All other currencies have also hit recent highs, showing signs of excitement not seen since the 2017 bubble.
Meanwhile, KOIN is designed with the concept of "stability".
Due to this characteristic, KOIN usually maintains a stable price, but compared to currencies that are soaring in the current cryptocurrency market, KOIN, which is not expected to soar, is under heavy selling pressure. This is temporarily disrupting the supply-demand dynamics for KOIN.
Due to the above, we are taking a measure to improve the supply-demand dynamic.
* For details, please refer to the official announcement separately.
The following is an overview of planned actions and my thoughts:
① Halt KOIN mining; New issuance will only come from Staking rewards
From now on, there is no need for a large supply of KOIN in the market. In order to maximize the benefits of holders who currently hold KOIN, we will stop issuing new supply through mining. Looking at the history of transaction mining, we determined issuance should be halted.
② After halting KOIN mining, we will Burn 85% of the total KOIN supply
We will leave about 5% or more for staking rewards and Burn the rest. Once everything is issued through Staking, no further supply can be issued. Significantly lowering the supply should help prevent value dilution. KOIN has a lot of value in its upcoming Forex (leverage trading) platform, which is very significant.
③ Remove the price range limit of KOIN for 1 week (starting from the price reset on 11/30)
This is in response to the many demands we receive daily, such as "I want to sell now” or “Why can’t I sell” requests. Those who are looking forward to the future of KOIN do not need to sell. But please, take this as you wish. This is merely a temporary response to user demands, so we will revert back to normal next Monday.
④ When you Stake KOIN, you will receive a trade bonus once FX functionality is integrated
The trade bonus can be used as trading margin for Forex (leverage trading). Although this cannot be withdrawn, winnings from this trading bonus can be.
・Amount staked at the time of opening x 3% (rate determined by Index price)
・Distribution of 0.5% trade bonus every Monday depending on the amount of KOIN staked (for a specified period)
We believe this is a great incentive for KOIN. You can also trade with the bonuses to make a profit.
Do not be so concerned if you are not good at trading. Even if you lose with the bonus, it’s not as if you are at a loss.
We will also be providing a social trading function that even beginners can easily use. This will enable anyone to easily enjoy trading.
As the KOIN supply is limited, we plan to adjust the supply and demand dynamics by creating such real demand.
Anyway, we will do our best for Koindex users and keep moving forward.