Transaction Cost Increased By 20X
In the real world if you increased your price by 20x there would be an outcry with people saying you are robbing them. This is kind of how I felt this morning when moving COTI off the Huobi exchange. After second thoughts it is still reasonable and thankfully have never moved crypto on Ethereum as I know the fees were kind of crazy.
Up until now they have been the cheapest to move COTI as the others are far more expensive. Huobi was always set at 1 COTI no matter how much you were moving whether it was 100 or 10 000. This was cheap and in fairness 20 COTI for their service is still regarded as cheap when comparing and looking around.
$2 is the now price as COTI is a smidgen under 10c but what happens when COTI is $5 as that starts to add up rather quickly. This is all hunky dory right now but as we know in Crypto things do change rather quickly.
This is highlighting another reason to get your stakes built now before the real value comes in pushing the prices up even more. The exchanges have to make profit and we also have to change how we do our transactions as sending 100 COTI is not viable as it is costing 20% of your investment. last week the 1% was not an issue but 20% is a bigger issue going forward as now it has to be weighed into the cost of transacting.
Binance has the erc20 COTI token so it is not native and is too costly to use them as bridges are involved. The only other way was to sell the erc20 token and move the funds to Huobi so there are costs involved no matter what you do. Kucoin was the other option but the last time I checked they were in the region of 120 COTI per transaction which is 6 x that of Huobi and why Huobi is still cheap and shouldn't complain.
The trick now is to build your stake to such an extent the rewards are covering all the excess fees. Fortunately the 20 COTI fee is covered and basically costs 30 hours to pay off on the current APR. I have not really looked at off ramps as yet as selling crypto at these prices would be kind of nuts.
COTI has a bank card available where I noticed some stakers complained about the fees as it is through a third party called Simplex. Those fees range between 3.5% and 5% so in comparison are not horrendous when the price of COTI rises. I do expect COTI to take control and issue their own controlled cards in the future as they are a bank after all. Thankfully these are not issues to worry about now and are for further down the line when the real value is being generated daily with an increased token price and a much larger stake.
Posted Using LeoFinance Beta
I often see this on exchanges... a sudden spike that is way beyond reasonable in terms of a percentage increase, especially when you consider the actual network fees.
Posted Using LeoFinance Beta
I think most of my COTI is still sitting over on ETH. There isn't a US wallet yet for me to move it into, so it doesn't make much sense to shift it around. That is a pretty big increase in fees. As long as they stay cheaper than ETH people likely won't complain. The low fees on BSC and Polygon kind of have me spoiled though, along with the no fees on Hive.
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I feel like you just need more HIVE :)
Such a great increase is questionable. But qhen the other available options are more expensive, you do not feel like complaining
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I have researched about this project myself it is very good and strong in coming days we will see it can give us very good profit because it has to have many exchange to be listed. This is the time to invest when there is new project coming and there is no exchange. You are absolutely right, the exchange takes a lot of fees in some place, so all this goes on simultaneously. Right now the price is low, people are comfortable with the fee, when the price will be more, people will have a lot of problem paying the fee.
This thing Kills user experience, the high transactions costs forces people to move away from the platform, 20 coti is big amount to lost when trying to move your assets. I hope they will think about it and reduce it to make user experience easy and satisfying.