The Current Status and Future of KoindexKoindex
We apologize for the inconvenience due to the inability to provide sufficient liquidity for the trading of KOIN.
In the latter half of 2020, various public companies and institutional investors have entered the cryptocurrency market via BTC. Partly because of that, the market price has sharply risen and BTC has recently hit all time highs.
After opening in August, the movement to sell KOIN began to become noticeable, and the fund continued to buyback KOIN. With the rise in the market price, the supply-demand balance of KOIN was clearly biased toward selling rather than new mining.
Although the Index price has been increasing, KOIN’s trading price range limit has increased without us providing executable value within the price range limit. Even at the lower limit price, there are very few buy orders.
In order to improve the current situation, we are working daily to develop products and we are proceeding with discussions with related companies, regulators, etc.
Regarding our main activities in Turkey
・Sponsorship partnership with Galatasaray (previously ended)
・Appearearances on Turkish cryptocurrency TV show BloombergHT
・Planned interviews with Turkish influencers via YouTube
In addition, during the Istanbul FinTech Week, which was held as an online event a few months ago, CEO Anthony participated as a moderator, and we have been actively focusing on promotional activities.
Our partnerships with PeP and MEFETE (Turkish lira to cryptocurrency PSPs), it has become possible to buy and sell cryptocurrencies directly with Turkish lira, making it an easy platform for new cryptocurrency users to participate.
However, things have not been going as planned. At the beginning of Koindex’s opening in the summer of 2020, we were preparing for a large-scale opening conference in Istanbul.
After that, we planned to hold many conferences and special roundtables with investors around several cities in Turkey, but due to the recent wave of the coronavirus outbreak, we are unable to carry out sufficient offline marketing activities as planned.
Regarding the FX service launch
Our FX service launch will have to be delayed. It is taking longer than expected due to specific areas not proceeding as planned.
Clearing regulations of banks and payment platforms in host countries is the cause, and we are currently working to find solutions with these partner companies.
The launch will come as soon as it can be resolved, so we apologize for the long wait.
KOIN is planned to be used as collateral/margin when swapped for Trade Bonus that will be provided. These Trade Bonuses cannot be withdrawn, but they can be used as collateral/margin for Forex (futures and leverage trading) and covering losses, so this will provide an effective option for using KOIN.
By further staking KOIN,
・Amount staked at the time of opening x 3% (rate will be the Index price)
・Trading bonus of 0.5% will be distributed every Monday depending on the amount of KOIN staked (for a specified period)
the above Trade Bonuses will be provided. Both bonuses should help bring value to KOIN.
We also believe that Koindex can grow significantly by linking FX and other popular products. We plan to introduce a system that is user and beginner friendly so all types of users can easily understand and enjoy using.
Release of new Lending service
We also plan to release a new interest rate reward type product. This is scheduled to be released in the first half of 2021 in collaboration with our partner companies.
It is a lending service where you can deposit cryptocurrency and receive interest. This will also enable borrowing of cryptocurrency through depositing collateral.
A service* will be introduced in which interest rates on lending and borrowing are given preferential treatment according to the amount of KOIN staked.
*This service may not be available depending on your country of residence.
Plan going forward
Currently, the circulating supply of KOIN is about 365.6M. By eliminating new issuance through mining, no further supply of KOIN will be added, as it is already high enough.
However, due to the characteristics of KOIN, if the balance between supply and demand is not in balance, the daily price limit can be either high or low depending on the trading rules.
With the current price limit situation, it is quite difficult for the Fund to buy and support all KOIN. We recognize that it is the mission of management to grow so the Fund can fully support the demand from the growth of products.
By enriching our products and services, we will develop and popularize new products so the actual demand for KOIN will increase, liquidity will be sufficient, and the KOIN price will remain attractive within the price range of the index. We will do our best to make this happen.
There are some things that do not go as planned causing operations to want to rush things. While proceeding with caution, the goal is to be well prepared and release quality products for users to enjoy.
If there is any progress, we will announce it firmly and inform the users.
All staff will do their utmost to make a leap forward in 2021.
Thank you for your support.