Hong Kong-based HashKey Exchange experienced a significant increase in trading volume last week, driven by a token rewards program. The company, which became the first licensed retail crypto trading platform in Hong Kong earlier this year, saw daily trading volume spike to $4.5 billion on December 1, before returning to around $275 million on December 3. This surge in activity has been attributed to trading incentives in the form of HSK tokens.
HashKey Exchange’s remarkable surge in trading volume
HashKey Exchange, part of the HashKey Group, witnessed an extraordinary surge in daily trading volume on December 1, 2023. CoinGecko data reported that trading volume on the month-old exchange reached approximately $4.5 billion on that day.
To put this in perspective, the world’s largest crypto exchange, Binance, recorded a volume of $11.3 billion over the same 24-hour period. This remarkable increase in trading activity grabbed the attention of the crypto community and market observers.
Following the trading frenzy, HashKey Exchange experienced a notable decline in daily trading volume on December 3, with volume dropping to $275 million. While this figure remains higher than the exchange’s volumes during its initial month of operation, it represents a significant decrease from the peak trading day.
This sudden fluctuation in trading activity raised questions among traders and industry experts about the driving factors behind this volatility.
Trading incentives via HSK tokens
A spokesperson for HashKey Group provided insight into the sudden surge in trading volume. They attributed the spike in activity to trading incentives offered through the HSK token rewards program. The program, which was first introduced in April, encouraged traders to actively participate on the platform by offering rewards in the form of HSK tokens, also known as EcoPoints.
“The spike in activity is a result of our recent campaigns for HSK rewards,” the spokesperson stated. “At HashKey, we operate strictly within the regulatory framework, and any actions of misconduct are not tolerated.”
Details of the incentive program
On November 30, HashKey Exchange issued a post via social media announcing the arrival of a DOT/USD trading pair on its platform. The post encouraged users to explore various opportunities to earn HSK rewards through ongoing campaigns, emphasizing the message, “Log in, trade, and grab your share of HSK rewards!” This marketing push was evidently successful in driving trading activity on the exchange.
It is worth noting that HashKey Exchange made history earlier this year when it became the first crypto exchange to obtain a license for retail crypto trading in Hong Kong. This achievement was part of a new regulatory framework introduced in the region, signaling a significant step towards establishing a regulated crypto trading environment in Hong Kong. The exchange officially opened its doors to traders on November 1, 2023.
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