COS tokens in open, unfilled orders will no longer count towards your COS balance for the daily FSA snapshot.
It was announced that from October 10th only COS held in exchange wallets or private wallets with a correctly set identifier will be included in the FSA snapshot.
Any COS tokens in the orderbook will therefore not be included in the daily snapshot.
The automatic FSA has been paused whilst this change is fully implemented and will restart 14th October or soon after.
Why Has the FSA Snapshot Changed?
The FSA snapshot is an automated function that determines how much COS each account holds.
Because COS is used in numerous trading pairs, there are occasions where trades may be executed as the FSA snapshot is taken.
Due to the nature of how the exchange handles trades, there can be a period of a few seconds where COS is not fully assigned to a users whilst fees are calculated.
By removing COS in orderbooks from FSA snapshot calculation, it removes any possibility of users missing out on their FSA.
More FSA for COS Holders
A potential upside of this change is that COS holders could start earning more in their FSA.
Looking at the COS/ETH pair, currently there are ~2 million COS tokens on the sell side. COS/BTC has almost 1 million on the sell side. These tokens will not be included in the snapshot.
These 3 million tokens make up around 2% of the current FSA snapshot amount. Whereas before, these tokens would still have earned FSA, their allocation will now be distributed to other COS holders.
Decreased Trading on COS Pairs
As COS tokens put in to the orderbooks will no longer receive FSA, there may be reduced willingness to trade on these pairs.
Where COS is the base pair (e.g. COS/ETH) COS on the sell side will not accrue FSA. Where COS is the quote pair (e.g. LTC/COS) COS on the buy side will not accrue FSA.
Users can remove orders before the snapshot occurs and replace the orders after the snapshot to earn their full FSA. This may cause daily spikes of activity following the regular snapshot. Advanced users may wish to automate the removal and replacing of orders with a bot, by using COSS’s API.
It will take some time to establish what the effect of this change is on the COS trading pairs.
Reduced Sell Pressure on the COS Token
For the average user, the effort to continually remove and replace COS orders daily to ensure full FSA is received, may become a barrier to trading. Because of this, there may be less COS tokens placed for sale on the COS/ETH, COS/BTC, COS/USD and COS/EUR pairs.
If this is the case, we could see reduced sell pressure on the COS token, which means more volatility and a higher potential for uptrends.
What Will Your Strategy Be After this Update?
There are a few ways this could affect traders, perhaps you’ll remove all your COS sell orders, maybe you’ll manually remove and replace, have you started creating a bot to automate this?
Perhaps you’ll use the potential volatility to your advantage to make some profit?
It’ll be interesting to hear what user make of this change and how it will affect your trading strategies on these pairs going forward, so feel free to share your thoughts in the comments section below.