According to Paolo Ardoino, CTO of the cryptomoney exchange firm Bitfinex, they will initiate a reward plan. All those users holding cryptosystems such as Cryptosoft review, Ethereum and XRP will benefit from this new strategy of attracting the exchange.
In this sense, the information shows that those who keep Bitcoin and ETH in the exchange, will receive a 6.2% annual return. With this modality, Bitfinex service users will be able to obtain passive income.
Likewise, a third digital currency also enters the annual performance benefit plan (APY). This is the XRP, of which, its users will receive 4.91% for keeping their funds in Bitfinex with this crypto currency.
Long-term Bitcoin holders will benefit the most
It should be noted that the lending platform of the aforementioned exchange has more than $1 billion USD. This amount is distributed among its more than 150 thousand users.
All this room for maneuver allows them to offer more stimuli to customers to stay and, at the same time, attract others. Consequently, Bitfinex is looking for large Bitcoin or Ethereum (whale) forks to increase its capital.
„We hope that this offer will be attractive to customers who have bought Bitcoin as a long-term value store and who also want to earn from their assets while holding them,“ explained Ardoino, quoted on the news portal CoinTelegraph.
Another important aspect of this fact is that the delivery of benefits for Bitcoin holders and other crypto currencies is done through a partnership with the firm Celsius Network.
Bitfinex CTO Paolo Ardoino offered details about the benefits for holders of Bitcoin and other cryptomontages.Bitfinex CTO Paolo Ardoino offered details about the benefits for holders of Bitcoin and other cryptomontages.
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Like a bank, but better
Highlighting another feat of this APY strategy, Ardoino explains that in this strategy, the benefits are more favorable than in banks in terms of rates. In this area, the exchange of crypto-currencies is equal to and in many cases exceeds the banks themselves.
This last point is of great importance to highlight, because the most popular banks generate interest rates that rarely go beyond 3%. The preference of investors in financial institutions lies in the mistrust that is related to the volatility of crypto currencies.
In that sense, nervousness is one of the factors that define the balance against digital currencies. As Bitcoin consolidates, account holders like Bitfinex will have less to worry about.
At the same time, the fact stands out that, throughout its history, the price of the main krypton currency has had an upward trend and everything indicates that it will continue. This means that many of the concerns of some traditional investors may be unfounded.
100 million new users
The other partner in this strategy of benefits for cryptomoney holders such as Bitcoin, Ethereum and XRP, Celsius Network, explains his firm’s plan. In the words of Alex Mashinsky, CEO of the latter company, the goal is to attract 100 million new users to its platform.
The total APY that its clients can earn is 15.89% among 12 different tokens offered. It should be remembered that Celsius is one of the fastest growing loan crypt companies.
Despite the promise of this project, Bitfinex is famous for the hacking it suffered during the year 2016 and which is still unsolved to date. The firm’s attempts to recover the stolen funds have been in vain.
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A difficult stain to erase
The most recent episode of this famous $1.3 billion robbery in 2016 was a reward offered by Bitfinex. Last August, according to the firm, it offered $400 million to the criminals to return the funds to the users.
The platform was robbed of 119,755 Bitcoins, of which only 27 BTCs have been recovered with the help of US authorities. The rest of the amount remains elusive for the platform and is divided between different portfolios.
The reward percentages for the hackers amount to 25% of the amount they extracted. At the same time, 5% of the amount is offered to people who help drive the criminals.
This is a strategy that seems to be driven by desperation on the part of Bitfinex, as hackers would have a lot to lose if they came forward to negotiate.
Facts to keep in mind