For the past decade, the use of Cryptocurrency as a store of value has really increased rapidly and for that, a lot of avenues are being created for business. Since the beginning of the past decade, Blockchain technology and Cryptocurrency have been taken dominion over the fiat paper state currencies steadily. Despite its bad publicity, as painted in being used for scam programs, money laundering, etc., it is rather unfortunate that people don’t educate themselves enough to understand this internet of money and the positive impacts it has on our generation. Cryptocurrencies and Blockchain technology are the future despite its steady dominance. As an emerging financial market and industry, one aspect really important is how people spend, trade, and exchange their store of value in cryptocurrencies. This plays a very vital role in the industry.
As people can tokenize their assets, business, and their companies into cryptocurrency and on Blockchain, how people trade have a stake in these companies and how to sell/buy and exchange their tokens are so important that we have cryptocurrency exchangers where people actually are able to list their businesses. the company’s in the form of a token may be able to trade, buy/sell as well as convert it to other assets. This is why cryptocurrency exchangers are so important because they facilitate the use of cryptocurrencies and how to go about them, also with the opportunity for people to have accessibility as to what they want to do with their funds.
In a trustless environment where people are embracing blockchain technology, a crypto exchanger must possess a lot of security and transparent qualities to be able to thrive. As more of these are required from an exchange, over the past decades a lot of exchangers are have risen and a lot more have fallen, while others are keeping on, thriving, and creating value for the crypto space.
Crypto Exchangers actually facilitate the bridge between, fiat and digital currency, aiding people to trade, buy/sell, and exchange their tokens.
Cryptocurrency and Blockchain technology as industries, over the past decades, are rising steadily, as well as exchangers competing to provide the best product and service for users.
Coinsbit is one of the emerging exchange with a goal of optimizing the trading experience and providing access to the enhanced crypto trading experience. Launched in 2018 as an European crypto exchange, coinsbit had its trend after listing a real estate IEO Fortem Capital (FCQ) which was featured on Forbes. It later launched one of the biggest airdrop referral programs in the history of the crypto space, where they shared free tokens worth 5000 of their exchange utility tokens. CNB on the first quarter of the referral program and the last quarter reduced the free tokens to 2000 for all new members who joined the exchange within the last quarter of the year from October to December 2019 where the inviter on the second round of this airdrop program get to receive 1000CNB for inviting new people.
This airdrop referral program attracted hundreds of thousands of new users to the platform and was featured in yahoo finance and other big media. Since they had their exchange liquidity token initial price at $0.10. This and the inviter incentive fascinated a lot of people to signed up and people saw it as a business. It required signing up and completing one’s KYC to qualify for the airdrop. The CNB token was launched after the airdrop for trading and currently trades at 21 satoshis way below its launching price and have a negative ROI of -25%.
One interesting about Coinsbit is the fact that they are facilitating the bridge between fiat currency and crypto by enabling deposits and withdrawals with Mastercards, VISA, and people will able to make deposits and withdrawals with their fiat currency and straight ahead start trading which I find it very revolutionary and fascinating.
They also give peer-to-peer loans and as well offer lending services for clients by locking up your token based on contract within a certain period of time and paying interest on it. This and so many game-changing features that they offer and promised to bring out more soon including a global e-commerce site.
What I think about Coinsbit
For an exchange to attract people, they must exhibit some sort of qualities that fascinates users to remain on the platform or even attract new users to the exchange. Some of the major things people consider before choosing an exchange;
- Transparency And User Experience
- Liquidity on the exchange
- Customer service
- Deposit And Withdrawal Timing
These are five main factors users usually consider before choosing an exchange. And am going to run you through rating coinsbit within each of the five mentioned above.
When comes to security on crypto exchangers the most important things people consider first are whether their funds are safe and secured with the exchange, whether they use a hot or cold wallet. Basically how secured are the funds on the exchange and secondly how the particular exchange keeps their users’ personal data private for the fact that most exchange off late requires users to submit their personal documents for KYC. We have allegedly had news about exchangers leaking users’ personal data and so on. An exchange is required to use hardware security models to be able to avoid cyber attacks such as DDoS attacks, etc. and since I’m not well versed in the cybersecurity part, I will talk about this as a layman.
Coinsbit, it being said to have hired an Estonian company ITEcosystem OU to take care of users’ personal data and security; that is respecting and protecting users personal data from any unusual leakage and for that only coinsbit and its affiliate only have access to users personal data used for the KYC. Coinsbit is said to have 95% of its funds stored in an advanced cold wallet that detects and blocks hackers.
Transparency and User Experience
Coinsbit exchange is able to process speed of up to 10,000 trades per second and up to 1,000,000 TCP connections. Personally, I used coinsbit exchange since December, and as a matter of fact, compared to other exchange in the game, coinsbit still have a long way to go when it comes to user experience; how fast their exchange run and the boredom waiting for it to load brings and sometimes, loading errors. When it comes to transparency, I really don’t know yet what to say because I don’t have any compliment for them but for a fact, I experienced how the website went down when they launched their CNB token and they blamed it on DDoS attack. My problem here Is the fact that I think coinsbit manipulates its order book and probably uses bots to create liquidity in the order book which is a kind of deceit. Your order could take whatsoever time and will not fill up. You will see price action coming up and down in between your price range and your order still will not get filled up. For transparency, and user experience apart from the fact that they did airdrop that, brought a lot of people on the exchange, they have to work way too harder to be able to compete with some of the best.
Liquidity Issues On the Exchange
The liquidity of an exchange is the degree at which an asset or security can be sold or bought in the market at ease and over and over again with flowing demand and supply. According to coinmarketcap, Coinsbit is among the top ten exchangers, with the biggest trade volume both reported and adjusted volume since the last quarter of the year 2019. It is indeed one of the biggest so far in the crypto space according to the crypto analytic reporters like cryptocompare and coinmarketcap.
What is obvious here is that fact that when you are looking for Coinsbit in the rank of more liquid exchangers, they are nowhere to be found among the top ten exchangers with a more liquid market it makes me wonder if all these volumes reported and adjusted are actually fake inflated volumes and for that, I see issues with transparency. The amount of trade volume they have should mount to their liquidity somehow but it is obviously not so. I wonder why Binance and Hitbtc etc are on top of the liquid exchange list on the first 10 meanwhile it is different for the reported volume and adjusted volume for them.
For an emerging industry like the crypto space, customer services are really important, responding to users and their needs and quests are the best feeling ever according to my observation. And without me not being bias here I think Coinsbit have one of the worse customer service experience here. They don’t respond to customers faster even if they do it takes a very long time to get your problem solved or your issues will not be attended to at all. This actually pisses off a lot of users and drive them away and actually for an industry like the crypto space the support staff must always be in touch with the customers to attend to their needs to let them feel secured and build trust through that especially the fact that the key members of the exchange are anonymous. People usually feel safe when they know the individual in charge and since they don’t know I think the customer support staff must be more active to handle issues and also clear their questions and constantly update them on their issues when needed. It is actually very difficult to get admin to respond to you on Coinsbit. They are good at announcing listings and giving updates but when it comes to attending to users, the community is my witnesses.
Deposit And Withdrawal Timing.
Comparing Coinsbit to other exchangers, I think if you have been in the crypto space for a while now you will notice how their withdrawal delays. People usually hate waiting for funds when withdrawn and it keeps delaying. The fact is Binance, Bittrex, and others in the game have already increased the pace and I think coinsbit really needs to work on that. Maybe they have policies and scrutinies, they run before paying out withdrawals but I think they really need to step up in that. For single withdrawal, taking a whole week and customer service support doesn’t respond to these issues that are kind of derision. People complain about their deposits and withdrawal almost every day on the same issues and even some are up to a month
The CNB Token
The CNB token is actually the utility token for the exchange Coinsbit. As every exchange utility token is created for ‘’within exchange infrastructure’’ as well as create avenues to sell the exchange on other exchangers. Most of the time, a utility token and its exchange success are intertwined, most of the building part is required by the utility token. Coinsbit launched its token at the price of $0.10 and it now sits way below the launching price in a loss of -25% on its returns since launch and it has an external listing on four other exchanges aside Coinsbit. The success of the CNB token as to when investors and those who received free token expected to cash out big are really obscure now. As we can’t conclude yet what could happen in the future and for that, I am giving the token a year to see how the price could climb to compete with other exchange utility tokens like BNB and OKB. As of now, CNB holders will have to wait in my opinion and give the exchange and its token time to see what the future hold. In my humble opinion is too early for investors and holders to rush and be wanting to cash out. For a moment a personally lost interest in monitoring the CNB price action and I decided to watch other exchange utility tokens and realized though the exchange is 2yrs and have more to do to improve on if they want their traders to stay. Besides that, I believe the CNB pattern for the past three months and other utility tokens pattern is relative. It usually struggles from the start probably the first six months and the first year and begins to recover subsequent times ahead, and for that only time will tell. Like I said the most part of CNB success will depend on the exchange.