Why are Exchanges promoting Trading competitions?

[MOBbrothers]

 One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

[1715077954]

1715077954

[1715077954]

1715077954

[1715077954]

1715077954

[1715077954]

1715077954

[gilangIDR]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

For me, the increasing number of exchanges will definitely make the platform exchanges try to provide the best service. This is a healthy competition and we as Traders certainly want the best exchange service. So this will not disturb investors and even can cause a sense of giving the best from the exchange platform. There will be no manipulation because all exchanges will compete to attract Traders to transact on their exchange.

[hugeblack]

I didn't understand your intent or maybe because I think "convince investors into storing their tokens" is wrong, I understood you wrong.

Most of the projects are for quick sale, and the roadmap of the project is planned for a year or two and not long-term projects.
I remember that the developer team of one of those projects sold all their tokens as soon as the price went up.
All that is happening now is that the platforms are trying to be central banks and sell people more illusion.

[LeGaulois]

The idea of cryptocurrency isn't to make people hodl a coin and sell it later. You got it wrong, a currency is to be used as a currency,..
Trading platforms run competitions but it's just to promote their new trading pair added. Nothing more, it's just a marketing trick to encourage people. In the same way that a merchant site can offer a discount if you subscribe to their newsletter.

Are their no effects of these to the community and the project developers?

Like what? global warming? unemployment?

[Pursuer]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments.

very WRONG!
the reason behind altcoins is pump and dump.
even if they weren't pump and dumps, what you said is still not the main reason for cryptocurrencies! the main reason is for them to be used. so they should have encouraged the users to adopt the coin as a "currency" which is in their name also. and encourage merchants to accept their coin as payment as some projects are  doing with little success.

currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well.
Why are Exchanges promoting Trading competitions?

it is simply because a trading platform doesn't care about anything except making profit. and the only way they make profit is if more people trade more on their platform so that the volume increases. hence the promotions,...

Are their no effects of these to the community and the project developers? 

a project must be solid enough so that it is not affected by how people are using it! and also be free enough so that anybody uses it anyways they like.

[Upgrade00]

Its pretty simple really, exchanges profit from regular trades, and trading competition is profitable, hence they promote it.

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading.

That is definitely one of the reasons, that is the idea sold by upstarts and ICOs, still trying to get a foothold.
With bitcoin, regular use smis encouraged to boost adoption.

[Nonie]

I think the trade competition is there to market the coin or to make it look a lot of volume so that other people are interested in joining or becoming a long-term investment choice because the volume of trading is crowded

[stomachgrowls]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

They do really make such competition not only just for promoting their platform but in all angles we can really see on what benefits on both sides it can give.
Either on the coin developer or on the exchange itself. So, these competitions turns out to be just like a common thing to be done specially if the exchange is starting up
or on popular exchangers that list out a new coin.I dont see it to be a compulsory thing but i do see it as a must-thing to be done.

[ShowOff]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

I think it is only to promote their site, with trading competition, people asked to use all services in that exchanges site. Beside of reward, when people like all features in that exchanges, it can attract people to trading again in that site.

[Dimon8]

I think that the stock exchanges promote trade competitions in order to attract large traders who will give large percentages of trade transactions. The more trading pairs and the volume of trade, the more attractive the exchange.

[rodalutor]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

It creates interest and volume in a token from people who otherwise wouldn't notice it. It's a win-win situation. The token developers get recognition for their token and increased interest. The exchanges get increased trading volume and so increased profit from fees.

[nicolas1979]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

They try to promote their platform exchanges and give users knowledge about their tools. This is very good and effective method to increase their customers numbers and also advertising about their services. Like or not join with trading competition in exchanges will create positive impact into their platform. As long free and no difficult rules, join is very recommended.

[gtcms]

I think it is obviously that trading competitions are just a part of marketing strategy of some exchanges. Now it is very difficult to attract new users, so exchanges and trading platforms are trying to make different promotions, and trading competions are one of them.

[D3m1r4wanti]

because the more people trade on their exchanger, the more people make deposits and WD and from the cost of withdrawing members to the exchanger's profits

[proTECH77]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

Exchanges promote trading competition just for one major reason which is profitability to the said exchange. I have participated in some on these competition and won with little or no efforts but many competitors which were not skillful enough in trading lost all their deposit in the exchange which make the exchanges gain as they loose.

The more reason why they embark on trade competition is also for the exchanges to advertise their token to investor for investment.

[leavolnhals]

I think they want to create a large volume of daily transactions and they create a community. They do not advertise their trading platform anymore, they spend money to get many traders to participate in the competition.
This will give traders the habit of trading at their trading platform. From there they will have more customers.

[Kevin77]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

Because they make money from trading fee's and they need volume in order to look higher in the exchange lists whereas they would not loss anything from it. It means there are three reasons for them to do this, lets take a look at them one by one, first of all they do make money from the trading fees and when hundreds of people trade in order to win the competition the exchange make a ton of money from the fee structure.

Secondly, they are known because of their volume, any exchange that is 108th or something on the volume list is in danger of closing the shop and leaving, which means they do not really make a lot of money and when they are at top 10 that means they are getting bigger and bigger, so trading volume increasing not only makes money for them but also puts their name out there.

Compared to all of this positives, they only give out one gift and that probably costs less than the trading fee's they made so third of all they do not lose anything because of it.

[harizen]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading.

As much as the usual scenario is concern, no it's not. Projects will be benefited in the ups and downs of the value of their respective tokens therefore no such thing as avoiding trades. More liquidity higher the volatility.

Currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well.

The increase of numbers in exchanges and trading platforms around will result in a strong competition. The benefits? Trading platforms will do anything to meet trader's criteria when choosing a platform.

Are their no effects of these to the community..

The downside of increasing numbers of trading platform is they are risky to used especially the new ones.

[Leonard2016]

The main reason for that is advertising , they get pay from that coin or token to promote trading competition or deposit competition or something like that , I think it is a good idea for both traders and the exchange , I have joined to some of them and have gained something .

[johanesrobin]

This is a kind of advertisement / promotion so that traders are interested in entering and making transactions. this is an easy question.
usually done by new exchanger to attract new traders and offer some of their features.

[izanagi narukami]

When you have profit from crypto, making your own exchange become wise choice if you want to make more wealth !

This is a kind of advertisement / promotion so that traders are interested in entering and making transactions. this is an easy question.
usually done by new exchanger to attract new traders and offer some of their features.

IMO, it's the efficient way to promote but of course the result will not come instantly.
Being trust need some time and dedication for those exchange will they want to be notice and being trust by all trader.

[Harlot]

Investing in cryptocurrencies does not necessarily say holding it entirely and letting it sleep in your portfolio. If you are a investor who is looking to add up more position without adding more capital trading is your only way to do that. Same thing applies, you sell high and buy low in this way you are looking to add up more buy having more money you produced from selling. Trading competitions is a really good way to promote and give experience to all of your customers, it is also something to look forward to as they are giving rewards to their clients.

[OlgaFS]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

I think most of ICO's creators use the crypto trading - this is the way to get their portfolio bigger.
Anyway, if somebody wants to trade - why not?

[wuvdoll]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

Both are doing for on their own benefits. Moreover, you cannot predict a trading competition is disturbing the plans of projects from not storing/holding, like when 50% (for example, most MN based coins are having more than 50% locked) of circulation into holding then why not another 10% to 25% may fight for deciding the worth of it.

Still, we cannot say a volume based trading competition involves only one asset or multiple assets. For example, when a trader is into competition and he is active with BTC/USDT trading means, I do not think that will influence BTC prices as buying and selling may happen and we cannot predict a competition will enforce its trading into one direction.

[VitKoyn]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?  

I don't think so, most cryptocurrency projects reason nowadays is just to make money, they want people to store or hodl their tokens so that the price will go up and developers will make more money as they hold the most of token supply. There's really no effect to the community about trading competitions, exchanges promote their platforms because if more traders will use their service/platform then they will earn more from every trades being made in their platform, and that's only it.

[bit-freedom]

I see no problem with trading competitions, these people are the day traders. There are other investors who are long term holders and will be holding the coins. I believe if the project is good, it will attract long term holders. The trading competitions should not have much impact.

[QuadsPoker]

I personally love exchanges and in particular Binance to offer such kind of competitions and other promotions. Exchanges depend on the amount of traders using their platform and the volume that we, traders, are producing.
We all know that exchanges earn a lot of money on our back. But seeing an exchange like Binance that offers for example a referral program, trading competition and other very nice promos, convinces me that they are here to serve us in the best possible way. If we compare this with exchanges like Poloniex and bittrex they do nothing to please their customers and this results in a huge loss of users and a huge drop in their daily volume.

So I would say to run a successful and competitive exchange these days they are almost obligated to offer such things. There is no better promo than free money to give away. At least they give away to the community and there users. So I can only cheer for that

[emberbekas]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?  

It will give an impact, for sure. At least in the short term. It could increase the daily volume and no exception with the price. The token/coin being promoted will get attention as well. But if we talk about the impact for the long term, it will need a bunch of measurements. The developer behind the project for sure will play the big role for the future of their tokens. If they are good enough then the chance to exist in the long term will be there. Otherwise their projects will be forgotten. I think the community and developers are very welcoming with such competition. It gives a good marketing, they don't need to worry!

[justdimin]

I see no problem with trading competitions, these people are the day traders. There are other investors who are long term holders and will be holding the coins. I believe if the project is good, it will attract long term holders. The trading competitions should not have much impact.

I am not sure what people will do in a trading competition, if they keep buying different different coins and tokens then it will give short term impact but if they buy and then sell then there will be no impact on price levels but they can still show more volume for the sake of competitions. I have seen many forex exchanges are conducting sclaping based trading competitions which is purely for showing high volume and price will never get impacted much.

It will give an impact, for sure. At least in the short term. It could increase the daily volume and no exception with the price. The token/coin being promoted will get attention as well.

If exchange is about listing on few assets for the competitions then those assets will be on top on daily volumes. Usually for example, bitterex show top volume coins in moving banners and I am sure that will attract more attentions from traders and investors but not sure a competition driven will do the same or not.

[carlfebz2]

I see no problem with trading competitions, these people are the day traders. There are other investors who are long term holders and will be holding the coins. I believe if the project is good, it will attract long term holders. The trading competitions should not have much impact.

Doesn't much impact? Trading competitions wont really exist if they wont really make such impact.These exchangers do accept a certain project and launch competitions to gain volume and same goes for
popularity. Its a win-win situation for them actually.This is why we are seeing competitions like this.

[panjay]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

its main purpose was to make a profit for the exchange. By the volume they make of course and if the volume high enough, everyone will flock into it, therefore enrich the volume once again.

[sana54210]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

How exactly is that a bad thing? Everyone is fighting for what’s theirs. These exchanges are into business, so they are doing what they are supposed to do which is to convince a lot of people and get investors to invest their money on their platform. You would also do the same if you were part of it.

Moreover, there are different types of trading competitions. Some exchanges are conducting on volume based and some others are conducting based on number of trades. If you notice both are significantly impacting one particular trading pair if your concerns are true. So, we cannot say anything about trading competitions will be giving negative consequences alone when people will be trading for the reason of competitions.

[target]

The idea I think is to impress future investors of the volume in the exchange. It doesn't matter whether its because of the contest but due to it they win people's trust, they gain users as well and the marketing of their exchange. Competition will always make users register and all these could result the exchange to get listed on coinmarketcap.

There will only be negative consequences if the exchange cheat which of course why would they do that when competition's purpose is to promote?

[audaciousbeing]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

The entire market is built in such a way to cater for everybody's need depending on which goal you set to achieve. If everybody decides to hold, it then means there won't be a market and the price would not be determined. When this don't happen, exchange sites would not even exist or survive because its from the trading activities that they are able to cover their own cost of operation. While its not totally good for the market to be entire about trading, its about finding a balance where every party will carve a niche and everyone would be happy about it.

[babysweetTiger0401]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

It is one of the marketing strategy if ever there are some of the exchange platform doing this type of methods. Probably, through this they could get more investors/traders to use their trading platform and also getting new altcoins that would like to use their exchange platform as well.

[mersal]

The idea I think is to impress future investors of the volume in the exchange. It doesn't matter whether its because of the contest but due to it they win people's trust, they gain users as well and the marketing of their exchange. Competition will always make users register and all these could result the exchange to get listed on coinmarketcap.

There will only be negative consequences if the exchange cheat which of course why would they do that when competition's purpose is to promote?

Exchanges had some other profit with them by promoting trading that's why they are promoting all kind of things so trading will be more for profitable way only so we cannot do without any other promotion or other things it needs but it does not bleed when something is negative otherwise all good.

[princerepon]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

yes because more trading more market cap add. when people not interested about some coin it fall. because they are not trade so much with that coin. that's why crypto company promoting there coin or tokens to make new investor and more traders.

[oriontab]

Liquidity is an important factor when it comes to asset,be it stocks,cryptos or commodity.If people are no willing to buy such then there is really no value in them,No brainer that there are promos ran across exchanges to keep them afloat.

[WatchMaker]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

What you don't understand is exchanges doesn't care about the coins/tokens all they care about is making money that is why they encourage trade competitions and giveaways. Exchanges charge commissions for trade, so the higher the trades the higher the money.

[Bezobraznike]

One of the reasons behind the cryptocurrecny projects is to convince investors  into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers? 

What you don't understand is exchanges doesn't care about the coins/tokens all they care about is making money that is why they encourage trade competitions and giveaways. Exchanges charge commissions for trade, so the higher the trades the higher the money.

    Exchanges provide some service and they are making profit like that. With promotions they attract new people, more people usually leads to more trades, math is
simple more profit for exchange. Every promotion, marketing costs, the bigger it is more money exchange needs to spend on that. Exchange earns on commission, but
with promotions they return something back to most active traders.

[ginobitcoiner]

why do new exchangers do some trade competition on their exchanger?
Of course the answer is that traders are interested in trading on their exchangers.
more and more people are trading and depositing and withdrawing, so the exchanger will get more profits

[xuan87]

The correct way to make crypto grow is by using it, it can be trading or doing transaction,holding for long term is not going to make crypto grow, it's going to make the crypto survive, and the reason exchanges make competition is to advertise their site, but it's good for the crypto and the exchanges, so I support the idea of this trading competition

[michellee]

The exchanges want to increase their daily or monthly trade volume so they are sometimes making competition for their members and they will give rewards in the form of tokens so indirectly; they help the tokens to survive for the future.
And with the competitions, they also give hope to the traders to hold the token for a long time because the price will increase higher than now.
The effect for the community and the project developers is they can face whatever happens in the market, and they can survive because of help from the exchanges.
But maybe I am wrong because I don't know what exactly their reason to do that.

[Ewinsane]

The correct way to make crypto grow is by using it, it can be trading or doing transaction,holding for long term is not going to make crypto grow, it's going to make the crypto survive, and the reason exchanges make competition is to advertise their site, but it's good for the crypto and the exchanges, so I support the idea of this trading competition

How you are saying that holding for long term is not going to make crypto grow ? Because as far as I am concerned, when you are holding one particular crypto, the chances for people to dump it will be very less. When more number of people are adopting then obviously that crypto will be having big price levels over the time because everyone is investing and holding and no one will be there to dump it. This is the basic understanding of myself why people are suggesting to go for holding but you are saying completely a different thing.

I am also in support of having trading competition because I will be getting chances to win but I'm finding this will NOT be helping crypto but definitely it will help the exchange to be promoted among traders because many traders like myself will be looking for such competition so that we can prove ourselves along with chances of gaining bonus.

[Akoldi_ibk]

Exchanges promoting Trading competitions to me is more like a business strategy employed by those exchanges. A lot of transaction/withdrawal/deposit fees will be in for the exchange. Trading volume will be boosted and so much more to be benefited by the exchange. The token used during the competition tends to gain more popularity and in the process been exposed to potential investors given the competition is on a big and trusted exchange. I think it will be a win-win for both the exchange and the token project. Trading competition is not a bad concept.