Bitcoin

<p>Hong Kong-based cryptocurrency exchange HashKey has experienced an unprecedented surge in daily trading volumes over the course of the past week, reaching approximately $4.5 billion, a notable increase from its usual levels.</p><h2 id="header-0">Token rewards program</h2><p>The surge, highlighted in a <a href="https://www.theblock.co/post/265837/hashkey-token-spike" rel="noopener noreferrer nofollow">report</a> published by The Block on Monday, occurred on Friday, and is being attributed to the company’s token rewards program, according to a spokesperson from HashKey Group.</p><p>A HashKey Group spokesperson clarified that the surge in volumes was a result of the company’s recent HSK rewards campaigns, which involve the distribution of HSK tokens or EcoPoints. Introduced in April, these incentives were designed to encourage trading activity on the platform. The spokesperson emphasized the company’s commitment to operating within the regulatory framework, stating:</p><p>“At HashKey, we operate strictly within the regulatory framework, and any actions of misconduct are not tolerated.”</p><p>Last Thursday, HashKey issued a <a href="https://twitter.com/HashKeyExchange/status/1730176566150435008?s&#61;20" rel="noopener noreferrer nofollow">post</a> on X (formerly known as Twitter), detailing one of its incentive campaigns. The post announced the introduction of a DOT/USD trading pair and encouraged users to explore additional ways to earn through ongoing campaigns. Despite receiving only 15 likes, the post aimed to attract users with the promise of HSK rewards for logging in, trading and participating in the platform’s campaigns.</p><h2 id="header-1">Licensing approval in August</h2><p>HashKey had <a href="https://medium.com/&#64;coinness.gl/hashkey-report-outlines-risks-of-liquid-staking-fbb0b74d56de" rel="noopener noreferrer nofollow">obtained</a> the first license to offer retail crypto trading in Hong Kong in August under the new regulatory regime, with an upgrade of its type 1 and type 7 licenses. Officially opening to traders on November 1, it quickly garnered attention in the crypto community. In the same month, it also <a href="https://medium.com/&#64;coinness.gl/hong-kongs-haskkey-launches-app-following-regulatory-approval-b16a4b4f2d9b" rel="noopener noreferrer nofollow">launched</a> an app, offering full mobile trading capabilities.</p><p>While daily trading volumes on Sunday dropped to $275 million, still higher than the usual levels but closer to the volumes recorded in its initial month, the significant spike on Dec. 1 was particularly noteworthy. Comparatively, Binance, the world’s largest crypto exchange, recorded $11.3 billion in volume over the past 24 hours.</p><h2 id="header-2">Wash trading ruled out</h2><p>Speculation arose on X regarding the possibility of wash trading contributing to the sudden surge in volumes. Wash trading involves intentionally matching a large number of orders to create artificial trading activity. However, HashKey’s spokesperson dismissed these claims, stating that no misconduct has been detected.</p><p>Justin d’Anethan, Head of Business Development in Asia for Keyrock, a crypto market-making firm, commented on the situation, stating:</p><p>“Many people in the crypto space assumed wash trading was taking place… But it’s almost unbelievable.”</p><p>He noted that if one wanted to appear more active, it would be done gradually, rather than in a single surge.</p><h2 id="header-3">Market sentiment and trading volume trend</h2><p>Over the course of the past 24 hours, the Bitcoin unit price has surged from $39,500 to almost $42,000, with Asian trading believed to have contributed significantly to that trading momentum. The overall crypto market capitalization has reached $1.5 trillion for the first time since early 2022. Bitcoin trading volume over the past 24 hours hit $39 billion, with a bitcoin market dominance rate of 51%.</p>

Unprecedented surge in trading volumes on HashKey exchange

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