Liechtenstein Cryptoassets Exchange (LCX) has completed its first trading competition today. The winners of the total prize pool of 1,000,000 LCX Tokens will be announced on Wednesday.
The contest ran over two weeks, from 24th February to 09th March and included two main categories: One was tracking the trading volume, the other was tracking the number of trades.
Monty Metzger, Founder and CEO at LCX, commented, “Launching the LCX Terminal trading competition is a natural step for us as it fits in the roadmap of LCX to provide an advanced cryptocurrency trading desk for professional investors.”
The top 3 traders in each category wins 250,000, 100,000, and 50,000 LCX tokens, respectively, while the next top 100 participants receive 1,000 LCX tokens each. According to Coinmarketcap, LCX Tokens list at a price tag of $0.000974 today, 9th March, meaning the first winner received $243 worth of tokens.
For participants to qualify and become eligible for the prize pool, they had to fulfill the minimum requirements for the competition in each of the category they were competing in, which was:
- Minimum 10 trades for Number of Trades
- Minimum 100 USD trading volume for Trading Volume
Participants could, however, not compete in both categories, trade volume or number of trades. They could track their rank on the LCX Terminal Trading Competition Leaderboard, which showed who was currently leading the pack in each category.
Trading competitions: demo vs. real cash
Other crypto exchanges have done trading competitions as well, and they also exist in the traditional world of finance. They are particularly popular with Forex traders. Some trading competitions require participants to pay admission fees; some don’t. Some are run by brokers, others by third-party groups or agencies.
Some exchanges also run competitions with their demo accounts. The rules are the same: traders need to achieve a specific volume, number of deals, profit, or whatever the goal is in a defined timeframe, but in case of a demo competition, they don’t use real money. On the contrary, real cash competitions involve the traders’ own funds – sometimes they are also funded by a broker.
The more exclusive version: Trading tournaments
Another concept that has risen in popularity are trading tournaments. On the contrary to competitions, the amount of participants is kept small and each participant has to pay an entry fee – and often also a commission fee. For example, a tournament may allow 50 participants at an entry fee of $20. Thus, the total prize pool will be $1,000, which will be divided among the first five winners. Additionally, traders can keep any profits they generated during the tournament, in case it’s a real cash tournament.
Competitions and tournaments are an engaging and fun way for exchanges to promote their platforms, interact with their audience, and create some excitement and buzz. LCX has not announced if they will launch a second competition, but why not? – Stay tuned.