I spent a few days collecting some relatively reliable official history, and will share with you the ups and downs of centralized exchanges in chronological order!
As the saying goes, history will not repeat itself, but it will certainly be remarkably similar. Let's review the history of digital currency exchanges, the world's first exchange in 2010. However, Mike's exchange was born. This industry chain has been developed for nine years, but this exchange was just a flash in the pan and did not achieve much success. On July 18, 2010, Jed Coleman, one of the founders of Ripple, founded the Mentougou Exchange, which is one of the most famous exchanges to date.
By chance, Jed saw an article about Bitcoin in a media, and he was instantly attracted. But when he decided to buy some Bitcoin, he found that it was very inconvenient to buy it on existing websites. So, the next day, he built his own website and named it MT.GO. That is the Mentougou Exchange we know now, and it was born overnight. The initial business model of Mentougou was also simple and direct. When users bought and sold Bitcoin, they first transferred the money to Jed's PayPal account, and then all transactions were completed through this account. And let this account bear all the risks.
This model seems to be full of problems now, because it is difficult to guarantee everyone's funds, right? But at that time, it still attracted a lot of attention from Bitcoin investors. The birth of Mentougou also directly boosted the rapid growth of Bitcoin prices, playing a very important role in fueling the trend. On the first day of the platform's operation, only 20 Bitcoins were traded, and each Bitcoin was worth five cents. But within a week of opening, the daily transaction volume exceeded $100, which was already a great thing at the time. In July of the same year, due to a report by Silk, the world of Bitcoin attracted a large number of new users, and the number of computers connected to the Bitcoin network was also increasing. That is, more people were mining, and Satoshi Nakamoto decided to increase the difficulty of mining to ensure an average speed of one block every ten minutes.
After the adjustment, the difficulty of mining increased by 300%. At this time, everyone found that their computers could hardly mine many coins every day, so they turned to buy Bitcoin in the secondary market. This happened to bring more users to Mentougou. With this spring breeze, Mentougou became the world's largest Bitcoin exchange by transaction volume at the end of the first month of its establishment. As early as February 9, 2011, the price of Bitcoin in Mentougou broke through 1 US dollar for the first time. This also triggered a new wave of buying Bitcoin.
Compared with some latecomers in the exchange industry, Mentougou did not have many routines in the channels of acquiring customers, but relying on its first-mover advantage and some original users accumulated in the early stage, it became the undisputed overlord in the exchange industry at that time. As the world's largest exchange, Mentougou accounts for more than 90% of the market's trading volume. At this time, domestic digital currency traders were also trading overseas, and China's exchange market was completely blank. So, on June 9, 2011, Wenzhou businessman Yang Linke founded the first domestic Bitcoin trading platform, Bitcoin China, which was officially launched. In the first two years after the establishment of Bitcoin China, the trading volume was only a few hundred Bitcoins per day and it was always in a loss state.
Even so, Yang Linke realized that there was demand in this market, so he persisted until April 1, 2013, when the price of Bitcoin broke through $100 for the first time. As the price of Bitcoin soared, more and more people poured into the Bitcoin market. Many bigwigs also entered the currency circle this year, such as Huobi and OK. Later, many of them achieved this myth. Bitcoin China also saw a sharp increase in trading volume at this time and began to break even. In November of the same year, Bitcoin China's trading volume had reached nearly 1.8 million bitcoins. The second-ranked Mentougou platform in Tokyo, Japan, was 700,000 ahead of it. In the 24 hours of December 1, Bitcoin China's trading volume reached 72,965.
The transaction volume of Mentougou, which ranked second, and the third, added up to 54,000 in the same period. Bitcoin China was far ahead and became the world's largest Bitcoin trading platform at that time. In March 2013, Li Lin founded Huobi.com. In order to attract more users to trade on Huobi.com, Li Lin exempted the Bitcoin transaction fee on September 20, 2013. This two-way 0.02% policy was restored in 2017. Through this strategy, by the end of 2013, the cumulative transaction volume of Huobi.com platform reached 3 million RMB, becoming China's largest digital asset trading platform.
To be continued----------
Due to character limitations, I can only write several articles separately!