COSS Fee Token (CFT) is due to begin trading imminently. With a lot of speculation on price, there could be some good opportunities for those traders ready to trade when CFT markets open.
Trading of CFT is scheduled for 16:00 (GMT+8) or 08:00 GMT April 1st 2019. Singapore time is shown below.
Current Time (SGT GMT+8)
CFT Trading Pairs at Launch
CFT is due to begin trading on COSS.io in the following markets:
What to Expect When CFT Trading Goes Live
Since the launch of CFT on December 3rd 2018, the FSA has been predominantly CFT. Each week has seen CFT make up around 90%+ of the FSA. With this in mind, there is a lot of CFT that has been locked up in people’s wallets as they have been unable to sell.
Some of the CFT has been reused for fees, essentially allowing traders to trade for free with the CFT earned in their FSA. But of course, people will be raring to sell some to realise the value of their FSA.
What is expected and what actually happens aren’t always the same in cryptocurrency. What is expected of the CFT trading launch is a deluge of CFT tokens hit the market, with greater selling pressure than buying demand. This scenario would push the value of CFT down (which is currently fixed at $0.10).
Should I Sell CFT or Buy CFT on April 1st?
Over the past few weeks, there have been a couple of airdrops to CFT holders. First a Substratum airdrop for holders of 5,000 CFT and secondly a Bitwatt airdrop for holders of 10,000 CFT.
Both of these airdrops show that the CFT token holds value outside its native function to reduce fees by 25%.
Future Incentives to Hold CFT and not Sell?
These airdrops came somewhat unexpected by the community. Some speculate that another incentive to hold CFT (and thus minimise selling pressure) could be announced around CFT trading opening.
Also, bear in mind the CFT trading promotion that is due to start around the same time as CFT markets opening. The trading promotion, in theory, should drive demand for CFT as exchange-wide promotional volume increases and people look to CFT to reduce fees.
CFT Fixed Price Points
COSS is selling 100,000,000 CFT at fixed price points on their exchange in ‘pools’. Once the $0.10 pool sells out, the next pool ($0.12) opens and so on. All the price pools are shown below:
- 20,000,000 CFT @ $0.10
- 15,000,000 CFT @ $0.12
- 15,000,000 CFT @ $0.14
- 10,000,000 CFT @ $0.16
- 10,000,000 CFT @ $0.18
- 10,000,000 CFT @ $0.20
- 10,000,000 CFT @ $0.22
- 10,000,000 CFT @ $0.24
This means that as long as the exchange keeps operating and CFT is used, eventually the price will have to rise to $0.24 and beyond. This alone is another incentive for people to hold CFT as well as use it.
On The Economics of CFT
The economics of CFT are interesting. The value at which CFT is consumed for fees is dependent on its average price on the exchange. This means that if the price of CFT falls, more CFT is consumed for fees.
A hypothetical scenario; a trade costs $1.00 in fees, it therefore uses 10 CFT at $0.10. If the CFT price fell to $0.01, the exact same trade would now cost 100 CFT, meaning 10x more CFT is shared in the FSA.
50% of CFT is returned back to COSS holders through the FSA, with 50% going back to the COSS exchange, being ‘removed’ from circulation. This coupled with a price drop of CFT meaning more CFT is needed for each trade would lead to the CFT pools (see above) selling out quicker. This would lead to an upwards price trend.
CFT Trading Expected to be Volatile and Exciting
Initially, the price of CFT is expected (and likely) to drop, due to the sheer amount of expected selling pressure, but there are a lot of good reasons to hold CFT for the long term.
Expect people to try and profit from swing trading in the volatile CFT markets opening April 1st, but also don’t underestimate the traders with foresight and large investors/institutions, looking to scoop up cheap CFT to use for their own trading.
Anyone looking to trade CFT on April 1st, good luck to you. There will almost definitely be profits to be made and fun to be had!