According to Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, they will start a rewards plan. All those users who hold cryptocurrencies such as Bitcoin, Ethereum and XRP will benefit from this new strategy to attract the exchange.
In this regard, the information shows that those who hold Bitcoin and ETH on the exchange will receive a 6.2% annual return. With this modality, users of Bitfinex services will be able to obtain passive income.
Likewise, a third digital currency also enters the annual performance benefit plan (APY). This is XRP, of which its users will receive 4.91% for keeping their funds in Bitfinex with this cryptocurrency.
Long-term Bitcoin holders will benefit the most
It should be noted that the loan platform of the aforementioned exchange has more than $ 1,000 million USD. This amount is distributed among its more than 150 thousand users.
All this room for maneuver allows them to offer more incentives to customers to stay and, at the same time, attract others. Consequently, Bitfinex is looking for large holders of Bitcoin or Ethereum (whales) to increase its capital.
“We hope this offering will appeal to clients who have bought Bitcoin as a long-term store of value and also want to earn from their assets while holding them.”Ardoino explained, quoted on the CoinTelegraph news portal.
Another important aspect of this fact is that the delivery of benefits for holders of Bitcoin and other cryptocurrencies is done through association with the Celsius Network firm.
Like a bank, but better
Highlighting another of the feats of this APY strategy, Ardoino explains that in it, the benefits are more favorable than in the banks in terms of rates. In this area, the cryptocurrency exchange equals and in many cases surpasses 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%. Investors’ preference in financial institutions is based on mistrust that is related to the volatility of cryptocurrencies.
In that sense, nervousness is one of the factors that define the balance against digital currencies. As Bitcoin consolidates, holders of accounts like Bitfinex will have less to worry about.
At the same time, the fact that, throughout its history, the price of the main cryptocurrency 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 of this profit strategy for holders of cryptocurrencies 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 your clients can earn is 15.89% among 12 different tokens offered. It should be remembered that Celsius is one of the fastest growing crypto loan companies.
Despite the promise of this project, Bitfinex is famous for the hack it suffered during 2016 and which to date has no solution. The firm’s attempts to recover the stolen funds have been in vain.
A stain difficult to erase
The most recent episode of this famous theft of $ 1.3 billion USD in 2016, was a bounty offered by Bitfinex. Last August, according to the firm itself, it offered criminals $ 400 million to return the funds to users.
The theft to the platform was 119,755 Bitcoin to the holders of which they have barely recovered 27 BTC with the help of the United States authorities. The rest of the amount is still elusive for the platform and distributed among different portfolios.
The reward percentages for hackers amount to 25% of the amount they mined. At the same time, 5% of it is offered to people who help drive criminals.
This is a strategy that appears to be driven by desperation on Bitfinex’s part, as hackers would have a lot to lose by showing up to trade.
Data to take into consideration
- The Bitfinex company, in alliance with Celsius, offers juicy rewards of 6.2% annual profit to holders of Bitcoin and Ethereum.
- Those who hold funds in XRP will receive 4.9% per annum in profits.
- The goal of the alliance is to attract about 100 million new users to its platform.
- Bitfinex has a security blemish on its record. In 2016, he was the victim of a $ 1.3 billion Bitcoin hack.