Updated: Dec 20, 2019
Bitmax is an industry-leading digital asset trading platform, which is considered next-generation by many. The ecosystem offers a broad range of financial services and products to both retail and institutional clients across the globe. BTMX is the native cryptographically-secured digital utility token of Bitmax. It is a major component of the entire ecosystem and is intended to be the primary token on the platform, issued as ERC-20.
This short guide will discuss the purpose for which Bitmax Token was designed, the developing team behind it, the way it works, and the various uses and applications of the coin and platform.
What Is Bitmax Token Designed For?
The goal of introducing BTMX to the Bitmax ecosystem is to provide a secure and convenient mode of settlement and payment, between participants who interact within the Bitmax ecosystem. Most exchange tokens existing today have yet to provide actual profitable use cases to their holders and investors.
Bitmax team along with their highly active community have created an exchange designed to serve the public in the best possible manner, as their exchange token offers growing usability. Bitmax team intends the ecosystem to become an innovative global digital asset trading platform. The token is designed to serve as a globally acceptable operator of digital asset exchanges, catering to a diverse group of clients ranging from retail to institutions.
Who Is the Team Behind Bitmax Token?
Bitmax platform was created by a team of noteworthy Wall Street veterans with expertise in trading. The exchange has only made one founding partner public, George Cao, who is also the CEO of the exchange.
Some strong funders are backing the entire projects, like Bitmain, Matrix Partners China, FBG Capital, among a growing list of new trading partners.
How Does Bitmax Token Work?
Bitmax became popular because they were the first to introduce the concept of “reverse mining”. This allows the exchange to offer a separate incentive structure, for trades involving maker fees. Traditional exchanges make use of the transaction mining model, which provides users with platform tokens for trading on the platform.
By working on “reverse mining”, users who execute maker orders get rebates. An equivalent amount of BTMX tokens is effectively deducted from the user account, which is then subsequently removed from the market supply. This helps support liquidity on the Bitmax platform.
The innovative technology employed in Bitmax is pushing the exchange to become the “next third-generation digital asset trading platform”.
Where security is concerned, BitMax uses a 3-level KYC system. There is a dedicated team that monitors trading patterns with artificial intelligence algorithms. It also has Strict-Transport-Security and X-Content-Type-Options.
What are Current and Future Applications of Bitmax Token?
BTMX is designed to be a non-refundable functional utility token, which has the primary purpose of being used as the unit of exchange between participants on the platform. It is important to understand that BTMX does not afford any power to the holder. The token does not offer any participation, shareholding, right, title, or interest in the Foundation.
Further, unlike other popular utility tokens, BTMX does not promise any reduction in fees or offer additional dividends, revenue, profits or investment returns. However, BTMX does function as an economic incentive, which encourages users to participate in the ecosystem. Currently, BTMX is the only token on the Bitmax ecosystem that can be used to pay for additional benefits and services.
BTMX plays an integral role in the various features offered by Bitmax. For instance, there are three distinct VIP membership Cards on offer – platinum, Gold and Silver Membership Cards. The type of membership shall decide the amount of discount received on transaction fees for regular trading.
Bitmax also offers data usage reward, which is 80% of net transaction fee revenue set aside by Bitmax and distributed back to BTMX token holders. This reward is aimed at increasing the overall user base of the exchange and to achieve a stable trading market for BTMX.
BTMX shall continue to remain bullish as long as Bitmax remains strong. And, the platform since its initial launch in September 2018 has boasted of full transparency, top security, multilingual exchange support, and user-centric with a sleek interface.
The past year since its launch, the trading platform has seen rapid growth in trade volume. An estimated adjusted volume of $208m has been traded every 24 hours, which is a big deal for a newly launched exchange. Presently, 137 trading pairs and 57 coins are traded on the exchange and the list continues to grow as more digital assets are added.