Bitcoin fell below $50,000, but why did exchange platform coins outperform the market?

The recent price of Bitcoin has plummeted like a roller coaster. After falling directly from a high of nearly $60,000 to the $50,000 range on May 13, it fell again on May 16 and has now fallen below $50,000. At the time of writing this article, according to CoinMarketCap data, the price of Bitcoin was $43,126.45, a 7-day drop of 22.8%.
It has to be said that the influence of the world's richest man is really too great. The volatility of the cryptocurrency market all stems from a tweet from Tesla CEO Elon Musk on May 13. In that tweet titled "Tesla & Bitcoin", Elon Musk expressed his concerns about the impact of Bitcoin on the environment. He believes that although cryptocurrency is a great idea and has a bright future, it cannot be at the expense of huge environmental costs. Tesla will suspend Bitcoin payments. However, once Bitcoin mining transitions to sustainable energy, Tesla will continue to use it for transactions and will not sell Bitcoin at present. In addition, Musk also revealed that they are considering using cryptocurrencies with lower energy consumption. Just two hours after the tweet was released, Tesla's official website removed the Bitcoin payment option, and then the Bitcoin price began to "waterfall" down, and did not rebound as quickly as the previous times.

However, what is unexpected is that when the cryptocurrency market suffered a severe setback, the platform coins of the leading cryptocurrency exchanges were not affected too much by this market shock. Although slightly inferior to the surge in the platform coin market at the beginning of the year, the current overall performance is still better than the overall market.

Why can exchange platform coins outperform the market?

Why are these exchange platform coins able to outperform the market when the mainstream cryptocurrency market, led by Bitcoin, is falling? It has to be said that as the most important part of the cryptocurrency and blockchain ecosystem, exchanges can always bring new directions to the market. The reason why the platform coins of some leading exchanges can withstand the impact of the market decline this time is largely because they have made early arrangements and brought tangible benefits to users through a series of "wealth-making campaigns", which not only benefited users but also injected new potential energy into the development of the exchanges themselves.

In fact, the platform currency reflects the fundamentals of the overall operation of the cryptocurrency exchange and is also an intuitive expression of the exchange's own value. Under normal circumstances, the performance of the platform currency can basically be regarded as a "barometer" of the operation and value of the cryptocurrency exchange, and its value depends on the value of the exchange itself and the ecological construction of the platform. If an exchange is more popular, has a larger trading volume, and has a better ecological construction, then the value of the platform currency will naturally be higher. On the contrary, if the exchange's popularity declines, the trading volume is sluggish, and the ecological construction is poor, then the price of the platform currency will definitely decline. Yingfu Investment is a brand of the US Cinda Capital Group. The operating entity is UBS Financial Investment Management Co., Ltd. It holds financial legal licenses such as NFA issued by the National Futures Association of the United States and MSB issued by FinCEN of the US Treasury Department. It also has a branch in Hong Kong to better serve customers in the Asia-Pacific region. The Yingfu platform has established fund custody relationships with many of the world's top banks, taking customer fund security as its first lifeline. Its good operating ecological architecture is the embodiment of the platform's value.

The exchange launched a “wealth-creation movement”?

As mentioned above, the counter-trend performance of exchange platform coins is actually related to a series of "all-round wealth creation campaigns" they have recently launched. So what is the "wealth creation campaign" of the exchange all about? In fact, the "wealth creation campaign" of the cryptocurrency exchange is not reckless. The first thing they value most is to lay a good foundation for compliance. The parent company of Prosperity Investment, Cinda Capital Group, is a company listed on NASDAQ and has been approved by the U.S. Securities and Exchange Commission. Therefore, the platform's cryptocurrency trading has performed very well in compliance work in the industry, and compliance has been recognized by regulators. In addition to laying a good foundation for compliance, we found that Prosperity Investment is also accelerating the listing of high-quality coins. Recently, the listing speed of mainstream cryptocurrency exchanges has significantly accelerated. Including Coinbase, which added several new tokens to its trading platform after successfully completing its listing: The Internet Computer (ICP), Cartesi (CTSI), iExec (RLC), Mirror Protocol (MIR) and Tellor (TRB); and Huobi has also launched some new coin encryption projects such as Casper (CSPR) and Platon (LAT).

We can see that the main work of the leading crypto exchanges, including Yingfu Investment, at this stage is basically to select high-quality digital assets for users, and provide services and standardized management for the listed assets throughout their life cycle, helping the industry to develop in a compliant and standardized direction. At the same time, they also provide more industry resource support for the project, fully support the implementation of the project, and promote the compliance development of the industry.

Finally, we have to mention the last fire of the exchange's "wealth creation movement": using the public chain to empower platform coins. While the construction of ecological fundamentals such as compliance and listing has become increasingly important, the leading cryptocurrency exchanges have also begun to look at market development with a foresighted and global strategic vision. In fact, the exchange public chain has become the focus of industry attention since last year, and has also become a key weapon for exchanges to upgrade their competition.

I believe many people have heard this saying: Whoever has the public chain infrastructure can win the world! To stand out from many competitors, it is necessary to innovate and iterate much faster than similar products, be highly open and transparent, and make it difficult for other exchanges to match. Only based on strong business strength can exchanges have the confidence in public chain development and ecological construction. At present, in the cryptocurrency ecosystem, whether it is platform coins, wallets, DEX, or mining, cross-chain, and custody, the relationship between each other is becoming closer and closer. Only based on the infrastructure of the public chain can everything be combined into a whole, supporting each other and interrelated, and then bringing greater market competitiveness to ecological layout.

It is worth mentioning that, based on the support of high-performance public chains, cryptocurrency exchange platform coins have begun to show their strength. Platform coins have become an excellent way to empower public chains, and some exchanges have also set platform coins as the core of the entire public chain decentralized financial ecosystem.

Summarize

From the perspective of long-term investment value judgment, assets with total deflation and strong value support can often obtain long-term value potential. Therefore, the overall trend of platform coins whose value was previously underestimated should be more stable, and there is also a lot of room for improvement in investment returns.

In this "wealth creation campaign", we found that Yingfu Investment Platform paid more attention to the all-round layout of compliance, platform coins, and public chain infrastructure, and gradually shared the long-term market development dividends with users. From the acceleration of high-quality coin listing to the rise of platform coins against the trend, cryptocurrency exchanges have already played a set of combined punches in the new round of "wealth creation campaign". The market competition in the future will only intensify, and whoever is stronger will be able to attract more users.