With the advent of blockchain technology, more and more people are migrating from fiat-based fi nancial systems to blockchain-based financial systems. Since January 2017, the cryptographic market share has increased from 7B USD to 110B USD in July 2017. In addition, the volume of cryptocurrency trading surpassed the stock trading volume in August 2017. However, the current crypto exchange is not capable of handling modern trade demand.
Current Problem in Cryptocurrency Exchange
High Trading Fees
According to the Exchange War, the top 30 cryptocurrency exchanges, on average, charge a 0.2% trade fee for makers and takers, which significantly affects traders’ profit margins. Some exchanges claim that they charge a low trade fee, but this rate of decline is often only applicable after the volume of traders reaches a very high threshold.
Real-Time Trading Difficulties
Because trading APIs with limited levels, non-real-time transaction confirmations, and book order updates are pending, merchants can not conduct transactions in real-time.
Asset Security Issues
The cryptocurrency trading exchange platform a large number of cryptocurrency deposits, thus making them an unavoidable target of hackers. On February 24, 2014, Mt.Gox, Bitcoin exchange, hacked and lost 650ribu Bitcoin, which is currently worth 2.6 billion USD; In August 2016, Bitfinex, one of the world’s top 10 cryptocurrency exchanges, has been hacked and lost 120,000 Bitcoins, currently worth over 480 million USD. If investors continue to be concerned about security issues, then the growth of the cryptocurrency trading market will be affected.
Shutdown Without Notifications
Shutdown without warning often occurs between trading platforms. In 2014, Mt.Gox suffers a serious technical failure, resulting in a halt in trading. The value of Bitcoin drops from 260 USD to 110 USD. On May 25, 2017, Kraken, another platform of cryptocurrency exchange, closed three times in a day. On May 27, 2017, Coinbase, a leading exchange platform, claimed that the stop system was caused by extremely high trading volumes. The incident also caused a decline in the value of Bitcoin. Disabling the platforms keeps user traffic stalled and people lose a lot of investment. To this day, many of these incidents remain unresolved.
Only Limited FIAT Currencies Supported
Most exchange platforms only support one type of fiat currency. While some do not even provide FIAT withdrawals.
Lack of Multi Language Support
Most exchange platforms only support one language, only a few are multilingual.
Customer Service And The Slow KYC Process
Currently, customer service delivery is very slow, while some exchanges do not even respond to the question at all. Furthermore, the KYC (Know Your Customer) process is slow and complicated. Take Kraken as an example, when a high-identity verification request, it takes about 30 days to complete Tier 4 verification.
COBINHOOD is a cryptocurrency service platform that provides cryptocurrency trading and ICO underwriting, aiming to solve the existing problems of current cryptocurrency exchanges.
COBINHOOD features ZERO trading fees to maximize traders’ profit and market liquidity. It has the ability to process more than one million orders per second, achieving the true “real-time” trading experience, and rendering it the world’s first cryptocurrency exchange capable of high-frequency trading.
Furthermore, COBINHOOD aims to solve ICO tokens’ liquidity issues through its ICO underwriting service.
COBINHOOD will support the following cryptocurrencies:
Features of COBINHOOD Cryptocurrecny Exchange
ZERO Trading Fees — COBINHOOD features ZERO trading fees for spot trading and margin trading with up to 10x leverage to maximize the profits for traders all over the globe.
100% Reserve Guarantee — COBINHOOD guarantees 100% reserve. It will also disclose all online and offline wallet addresses for public audit, ensuring no embezzlement of traders’ funds.
Offline Multisig Wallet Security System — Every kind of crypto assets deposited at COBINHOOD will be stored in an offline multisig wallet. It is estimated that 98% of assets will be stored offline, while 2% of assets will remain in an online wallet allowing for faster user deposit/withdrawal experience. Each offline multisig wallet consists of 8 HSMs (Hardware Security Modules). This means that transactions which use the multisig wallet will require 5 out of the 8 HSMs to proceed. If one of the HSM administrators is compromised, the multisig wallet will remain secure. Furthermore, the administrators of the HSMs are located in different countries (geo distributed) adding to COBINHOOD’s security system.
Crypto Assets Backed by Insurance — All crypto asset deposits in COBINHOOD’s online wallet will be backed by insurance. Since offline multisig wallet is virtually impossible to be compromised, all users’ crypto assets will be fully covered.
Two-Factor Authentication Enforcement — COBINHOOD enforces two-factor authentication (2FA) to log in. Withdrawal of crypto assets requires an extra email confirmation to protect the user’s crypto assets.
Distributed Order Matching Engine — The COBINHOOD platform is built on Google Cloud Platform and is programmed with Golang for high concurrency
Wide Range of FIAT Currencies Supported — COBINHOOD will support a wide range of fiat currencies. Users are able to choose their preferred fiat currencies to make funds deposit or withdrawals. Fiat currencies supported by COBINHOOD: USD/EUR/JPY/KRW/CNY/HKD/CAD/GBP/ AUD/NTD
The Most International Cryptocurrency Exchange — The website and app of COBINHOOD support 10 main languages, covering 98 % of the world’s population’s native language, making it the most internationalized cryptocurrency exchange. Languages supported by COBINHOOD: Chinese/Japanese/Korean/English/Russian/ French/German/Spanish/Portuguese/Arabic
Responsive 24/7 Online Customer Services — COBINHOOD provides 24/7 online customer service. Should users encounter issues or need assistance, customer success specialists can be reached via the COBINHOOD website and mobile app. When a user submits an inquiry, the customer success team will respond within one day. COBINHOOD’s goal is to provide consistently excellent customer assistance.
User-friendly KYC Process — COBINHOOD will enforce bank-level KYC (Know Your Customer) processes to comply with AML (Anti Money Laundering) laws. COBINHOOD provides user-friendly identity authentication services. The process usually be completed within 24 hours of customer submission.
Decentralized Exchange — In the future, COBINHOOD plans to build a decentralized cryptocurrency exchange. As the consensus algorithm of blockchain technology advances, decentralized highfrequency trading and real-time order book matching will become feasible.
Popo Chen — COBINHOOD CEO and Founder
Pu-Chen Mao — CTO
Brendon Hogger — Advisor
Wei-Ning Huang — Advisor
Tz-Iu, Jeng — Advisor
Authors : _IRMAN
Bitcointalk Profile Link : >https://bitcointalk.org/index.php?action=profile;u=1050286
Source : https://medium.com/@irman/cobinhood-cryptocurrency-exchange-with-zero-trading-fee-dbbd69dcc61b