Hong Kong-based cryptocurrency exchange, Hashkey, has announced the listing of the Avalanche (AVAX) token on its platform. This move presents an opportunity for increased adoption of the cryptocurrency. However, trading AVAX on the exchange comes with an interesting requirement that limits access to professional investors or individuals with a significant investment portfolio. This article examines the implications of this listing and analyzes the current state of AVAX in the market.
On September 27, Hashkey announced the addition of the AVAX token to its platform, with trading set to begin on September 28. This listing provides an avenue for traders to engage with AVAX and potentially drive its adoption. However, the requirement set by Hong Kong’s Securities & Futures Commission (SFC) restricts retail investors from accessing AVAX on the exchange. Only professional investors or individuals with an investment portfolio worth at least 8 million Hong Kong dollars (equivalent to $1 million) are eligible to trade AVAX on Hashkey.
Since the authorization of retail crypto trading in Hong Kong in August, the SFC has imposed significant restrictions on cryptocurrency exchanges, including Hashkey. As of now, only Bitcoin (BTC), Ether (ETH), and Tether (USDT) are approved by the SFC for retail trading. Altcoins like AVAX are limited to professional investors or individuals with a $1 million portfolio. This regulatory framework aims to protect retail investors from potential risks associated with less established cryptocurrencies.
Hashkey, as the first exchange to receive a retail crypto license in Hong Kong, has a daily trading volume of approximately $4.93 million, which is relatively low compared to its global counterparts. For instance, Binance, the world’s largest crypto exchange, boasts a 24-hour trading volume of nearly $4.9 billion. While the listing of AVAX on Hashkey presents an opportunity for increased adoption, the exchange must overcome the challenge of attracting more traders to its platform to compete with larger exchanges.
It is crucial to note that AVAX has been facing price struggles in recent months, and September was no exception. In the past 30 days, the token experienced a loss of nearly 14% of its value. This continuous decline reflects the uncertain market conditions affecting Avalanche. Since reaching a high of $21 in April, AVAX has plummeted by approximately 58%. As of now, the token is trading at $8.91 with a 0.31% dip in the last 24 hours.
According to CoinGecko, AVAX currently has a daily trading volume of $117,251,082, representing an 18.4% increase in the past day. With a market cap exceeding $3.1 billion, AVAX ranks as the 24th-largest cryptocurrency. Despite its recent struggles, AVAX still holds potential for growth and recovery in the market.
The listing of AVAX on Hashkey Exchange marks an opportunity for increased adoption of the cryptocurrency. However, the requirement of being a professional investor or having a significant investment portfolio limits the pool of traders who can engage with AVAX on the exchange. Hashkey faces the challenge of attracting more traders to its platform to compete with larger exchanges. AVAX’s recent price struggles highlight the uncertain market conditions faced by the cryptocurrency. Despite these challenges, AVAX still holds the potential to recover and grow in the market.