FXcoin, a Japanese crypto exchange, has been set to start its trading services from next month onward, just in time to see the crypto market as a whole start to recover.
Coming In At The Perfect Time
As Bloomberg had reported on Thursday, the exchange will only offer services with Bitcoin at the start. However, the exchange holds plans to expand services to other popular digital currencies quickly. Prime examples of these digital currencies would be Litecoin or Ripple.
The exchange itself holds aspirations to build a swap market, as well. Herein, investors will be offered a tool for hedging against price volatility. As one would imagine, this is quite an attractive prospect in light of recent market turmoils.
Gearing For Stimulus Check Investment
The exchange itself will be headed by one Tomoo Onishi, with FXcoin itself having been formed for more than two years before this. The exchange had received the proper approval of the Financial Services Agency, Japan’s financial regulator, to offer crypto trading services. It should be noted that Japan only holds 23 exchanges that have received the mandatory FSA license to operate legally within Japan. A few of these exchanges have yet even to start a business.
Onishi is leveraging the opportunity to start the trading service at a time some would argue to be opportune. At this point, the COVID-19 pandemic is still in full throttle, and the world is struggling to cope. Onishi is convinced that stimulus checks issued out to people might very well end up being invested in digital currencies.
Crypto Still Invested By Humans
Onishi has history on his side, as the US had a similar situation occur. In the US, Coinbase had revealed that crypto purchases spiked after the government provided stimulus checks. Notably, the number of investments coincided with the amount the governments had issued out to the people.
While many were convinced that the crypto industry was somehow infallible in a way that the traditional market isn’t, the COVID-19 pandemic pointed out the fundamental flaw. Simply put, while crypto and traditional financial assets can differ immensely, when it comes to emotional investments and liquidations, the crypto industry is just as susceptible as any other when it comes to panic selling. However, with significant events coming up in the crypto industry, such as Ethereum 2.0, as well as the Bitcoin halving, the crypto markets have started the slow process of recovery.
Even Onishi stated that no asset exists that is absolutely safe. However, he still considers himself bullish for the crypto prices.