On the 5th December, BitMEX launched its first ETCWin token derivatives contract, WINZ16. It currently trades approximately 74% higher than its listing price. On the back of this successful launch, a number of traders are asking “What is ETCWin?” and “why the FOMO?”.
In a nutshell, ETCWin is a China-based Digital Currency Exchange Platform, built primarily for Ethereum Classic (ETC) trading. The exchange aims to list ETC pairs against XBT, LTC, XMR, and ZEC. The exchange will also allow trading of smart contract digital tokens, such as the ETCWin token (WIN). ETCWin also operates 91pool, an ETC mining pool with over 10% market share.
The exchange ran a successful ICO between 17th October to 23rd November, raising over 1,022,500 ETC. In return, the investors will receive 21% to 49% of project income and voting rights in the form of WIN tokens, which are based on the ETC protocol.
The WIN subscription price was 1 to 1.1 ETC, depending on the amount invested. Each WIN token represents 1 vote. Token holders can vote on development proposals 1 week in advance. A proposal that garners 60% of voters will be approved.
ETCWin has forecasted a dividend schedule based off approximately 3,000 XBT daily turnover. They predict a YTM of 54% in the 1st year, 153% in the 2nd, and 380% in the 3rd year. In addition, they proposed a buy-back schedule where they guarantee to buy back at 1 ETC per WIN.
They also have large backers and important members of the community behind them such as Chandler Guo, Roy Zou (CEO of Bitkio and a Core team member of ETC), and Feng Han (Blockchain Asia DACA Chief Secretary).
ETC is becoming more and more relevant in China as large miners and exchanges adopt it as the currency of choice given its immutability, and their ability to participate in discussions surrounding the future, compared to Ethereum (ETH) where the Foundation rules with an iron fork.
Both ETH and ETC have been on a one way trip against the King of Crypto that is Bitcoin, however ETC has reached 10% of the market capitalisation of ETH and remains a serious contender. Given the amount of investors and institutions backing ETH, it was easy to classify ETC as a pipedream.
China is the key to a future pump in the ETC price. It is telling that BTCC chose to list ETC trading before that of ETH. Many influential Chinese traders and miners vocally do not support ETH and the Ethereum Foundation. This angst lays the foundation for an ETC to ETH parity rally.