HashKey Exchange, operating in Hong Kong’s regulated crypto market, experienced a significant spike in daily trading volumes, reaching approximately $4.5 billion. The surge was linked to the company’s HSK rewards campaigns, where users could earn HSK tokens or EcoPoints. While some speculated about potential wash trading, HashKey emphasized adherence to regulatory standards and denied any misconduct. The exchange, part of the HashKey Group, obtained a retail crypto trading license in August and officially launched on November 1.
Hong Kong-based HashKey Exchange witnessed an extraordinary increase in daily trading volumes last week, reaching around $4.5 billion, attributed to the success of the company’s token rewards program. The surge marked a trading frenzy on the month-old platform, which had officially opened for traders on November 1.
Comparatively, the world’s largest crypto exchange, Binance, recorded a 24-hour volume of $11.3 billion during the same period, highlighting the substantial growth of HashKey within a short timeframe.
On December 3, HashKey’s daily trading volume saw a notable decline to $275 million, still higher than its usual levels but closer to volumes recorded in its initial month of operation.
HashKey Group, the parent company, secured the first license for retail crypto trading in Hong Kong in August, operating under the region’s new regulatory framework. The company, founded as a spinoff of Chinese conglomerate Wanxiang Group and an early investor in Ethereum in 2014, positions itself as an “end-to-end” crypto firm with services spanning trading, custody, venture investment, and web3 infrastructure.
A spokesperson for HashKey Group linked the surge in trading volumes to the HSK rewards campaigns, specifically mentioning the distribution of HSK tokens, also known as EcoPoints, as incentives for users. The company had introduced these rewards in April, and a recent campaign on November 30 promoted a new DOT/USD trading pair, encouraging users to explore additional earning opportunities through ongoing campaigns.
Addressing concerns raised on social media platform X (formerly known as Twitter), the spokesperson stated that HashKey operates strictly within the regulatory framework, and no misconduct has been detected. Despite speculations about potential wash trading, where artificial volumes are created through coordinated orders, industry experts, including Justin d’Anethan from Keyrock, expressed skepticism about such claims, emphasizing the unlikelihood of such a strategy for boosting activity.
In conclusion, HashKey Exchange’s surge in trading volumes appears to be driven by its token incentive programs, marking a successful entry into Hong Kong’s regulated crypto market. The company maintains its commitment to regulatory compliance and dismisses allegations of misconduct amid the rapid growth in user activity.
