The Chinese exchange house FCoin announced the creation of a new "mother fund" to support a group of previously constituted token funds, selected to continue investing in blockchain projects. The capital to realize this support will come from the repurchase of its own FT tokens in the secondary market.
The announcement, dated July 13, indicates that the repurchase will be, in an initial phase, 100 million FT tokens . According to the information published on the official website of Fcoin, this operation aims to encourage participants of project funds to adopt FT tokens to raise financing capital.
To operate this "mother fund" "( FT Parent Fund ), will establish a" FT negotiation zone ", to which participants will be able to access in projects that have managed to raise more than 3 million tokens FT from the "Mother fund". However, they pointed out that they will make further announcements later on the relevant rules of the "FT trading zone".
FCoin has been the subject of several controversies since its launch last May. Its business model, the "trans-fee mining", where the cryptocurrency trade is used as mining, was questioned by the crypto community when considering that it is not sustainable over time. Recently the startup launched a contest to develop a ranking of accumulated deposits, which congested the Ethereum network.
Suspected activity in the Ethereum network
The recent significant increase in gas prices ( commissions) of Ethereum, was analyzed by a user of Reddit, who noted that it was related to the contest launched by FCoin.
As the user probablynotarussian said in a publication two days ago, on 40% of the network was being used by an ERC20 token contract called "IFishYunYu" which has no characteristics. However, a significant number of accounts called "mysterious" were sending massive amounts of this token, apparently to transfer individual tokens to the Fcoin exchange house, which are distributed in different directions and then return to the main address. This would have resulted in a payment of 50 ETH per hour in commissions in 24 hours.
The high volume of transactions in the Ethereum blockchain, generated by the FCoin exchange, are caused by the business model of the startup, since the ranking depends on the accumulation of deposits on the platform.
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