How effective has OceanEx's CryptoFarm been?

Wednesday, June 19 – Many were shocked when Wednesday night’s OCE lockup sold out 10,000,000 OCE tokens in under 5 seconds. The day before, the VET lockup received 50 million VET in a similar timeframe. CryptoFarm, the latest product from OceanEx, has now locked up nearly half a million dollars worth of funds in less than 10 seconds of active enrollment. So what is so attractive about the product?

CryptoFarm allows users to lockup tokens for a set period of time. It is a low risk value-added plan that provides users with a relatively stable asset growth solution. Users can earn returns without exposing their tokens to the potential risks of short-term trading.

It’s hard to imagine OceanEx predicting this level of popularity for the new feature – despite it’s high annualized return of 10-25%. Yet if early indications are anything to go by, the platform will be very popular among token holders who don’t wish to risk their assets trading, but are still interested in earning growth. One can also look to the success of Wealth Management Products (WMPs) in China, that has turned into a $20 trillion industry of both short and long-term lending. Personal assets as an investment in China is expected to reach $37 trillion in the next five years.

Of course, scaling will be an issue, as the WMP industry in China is riddled with shadow banking and unregulated lending. OceanEx will need to be transparent and forthcoming to maintain trust, while still satisfying the demand of a growing user-base. Still, if they are successful, this represents great utility for the OCE token, which is needed for many of the platform’s features.

The Balance of Power

One interesting side-effect of the CryptoFarm announcement was a steady influx of user assets from other exchanges. Over the past week, Binance’s wallet has decreased by about 68 million VET – while OceanEx’s wallet now contains over 250 million more VET than before. This gives OceanEx an important surge in trading volume, moving their VET/ETH, VET/BTC, and VET/USDT pairs into the top spot on coinmarketcap.com. This has an important influence on coin price metrics, as the exchanges with the highest volume play a critical role in determining the reported token price.

CryptoFarm now has the potential to replicate that with other tokens. Tomorrow will feature the TIC token, and OceanEx has mentioned that they will make other non-VeChain tokens available as well. If OceanEx replicates their success in drawing in a large quantity of tokens from other projects, they could find themselves quickly climbing the rankings of top global exchanges by volume.

Sources:
China Tightens Grip on Wealth Management
VeChain Rich List