Crypto-Exchange and Yahoo subsidiary TaoTao attract users with dubious offer

The Japanese Yahoo subsidiary TaoTao wants to start operating on May 25th. The Crypto Exchange is thus one of the few exchanges that has received the regulatory approval of the financial supervision of the country. Meanwhile, the company intends to win a cashback program worth 10,000 yen to the raffle.

The crypto market is no longer considered new territory among the old-established grandees of the Internet age. And so it is not surprising that more and more well-known companies dare to try to gain a foothold in the market. So now Yahoo. As the Japanese industry magazine CoinPost reports, the TaoTao Exchange, a Yahoo subsidiary, is already “in mid-May at the start go”.

No exchange without liquidity

In a start-up, trading venues usually face a dominant problem: the generation of liquidity. Because if the user base is so small that orders can not be made, the stock exchange can no longer fulfill its task as a trading center. Especially young stock exchanges therefore increasingly resort to wash trading to attract users. TaoTao chooses another way.

The Bitcoin exchange advertises on its website with a cashback program that pays out 500 Japanese yen (about 80 euros) to 500 traders selected by lot. Assuming the case, investors have registered between March 25 and April 17, and have at least 250,000 yen in crypto trading volume on the website.

Initially only small assortment

TaoTao is scheduled to start operating on May 25, according to the company. Initially, investors can trade BTC, LCT, ETH, XRP and BCH on the platform. The exchange deals with the regulatory approval of the Japanese Financial Services Authority, the Financial Services Agency (FSA). The latter had a registration obligation for crypto companies in the course of the coincheck hack. In the hack, the attackers were able to steal NEM tokens totaling over $ 500 million. The approval is noteworthy in that 2018 190 applications were pending with the regulator, of which so far only a few received the regulatory approval.

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