A zerbaijan & nbsp; based company EMHM Holding Azerbaijan & nbsp; Securities and Exchange Commission & nbsp; applied to ASEC to establish a new cryptocurrency exchange. The stock exchange was named WCWCoin, it is expected to open on 28/05/2021, the Republic day of Azerbaijan.

World Cash Win Coin

The company made its application with Azerbaijan International Consalting Center, a subsidiary company affiliated to it. The banking services of the exchange will be provided by the program interface (API) developed by SynapseFi. WCWC With wcwc, you can make a transaction with a leverage of up to 100 times with the advantage of 10% commission discount as a member from this link.


Among other uses, the

API will be used to increase security measures. The API will try to prevent malicious use by tracking the location of users. At the same time, thanks to this feature, the stock exchange will not be available in banned countries and states. WCWCoin users will be able to store both fiat and cryptocurrencies using pre-determined banking institutions.

How does a Bitcoin exchange work?

Suppose I invested 10 BTC in a Bitcoin exchange. My friend has deposited 10 BTC. Both of these transactions are registered on the blockchain as an official bitcoin transfer.

Now me and my friend, we can start shopping on this personal account. Whatever transactions we do, they will only be kept in the personal account of the exchange, but will not be recorded on the blockchain.

This exchange has theoretically 20 BTC that it can use on blockchain. (Unless we withdraw our Bitcoins, they belong to the exchange.) From the moment we deposit our Bitcoins, these Bitcoins can be used by the exchange on the blockchain.

The value we see in our account on the stock exchange is completely virtual. My friend and I don’t really belong to us as long as we keep our Bitcoins on that exchange. Their real owner is now the stock market.

If the exchange where we deposit our Bitcoins is serious, experienced and good enough, it will keep our Bitcoins without using them. (Until we withdraw our bitcoins.)

But what if the stock market uses these Bitcoins? What happens?

While my friend and I continue our purchases on the stock market, the stock market can start using our Bitcoins. This actually causes a 40 BTC movement. 20 BTC real and 20 BTC virtual.

What? How did bitcoins double? Could something like this happen?

Of course, this is a very extreme situation. Normally, the exchange has enough Bitcoin to make small and medium payments when customers withdraw. It decides the amount it will hold according to the transactions made by its customers. The possibility of all customers withdrawing all their Bitcoins at the same time is not taken into account here. This is an extreme case.

Banks work this way too. Banks never keep all cash. Banks keep the amount determined by the central banks and release the remaining amount to the market by credit or other means. (The only job where you can sell the same property to more than one person or not be arrested & nbsp; Grin & nbsp;) This is what we call partial reserve banking. If we all want all our money back at the same time, the system will collapse. Because there is not as much money as you see in your accounts. The money you see in your bank accounts is as virtual as Bitcoin.

Example; Suppose a bank reserves 50% partial reserve. When you deposit 1000 TL, you can reserve 500 TL and give the remaining 500 TL as a loan. When we add the 1000 TL that appears in your account to this, it will be 2000 TL in total. This can be called the bank doubling the money or producing the money that is not there. Although the reserve ratio of banks varies in countries, it is generally 9 to 1. In other words, they can multiply 1 TL by 9.

Going back to BTC;

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Since Bitcoin exchanges do not have a fixed partial reserve ratio, exchanges have the power to decide how and how to use Bitcoins. He can use the money folding mechanism and the partial reserve policy as he wishes.

If they are right, they hold all the Bitcoins deposited to pay them when their customers want it back. But there is nothing that could restrict them in this regard. If they reserve 50% partial reserves, they will double the amount of Bitcoin.

Two issues to consider;

  1. Since the majority of Bitcoin transactions are made on a private account that is not visible on the blockchain, no one will be able to tell if an exchange is using a partial reserve policy.
  2. There is currently no regulation regarding partial reserve or money doubling. nor a lack of transparency. Also, the stock markets do not admit that they are doing such a thing.

Let’s continue with an example;

If we were currently in the market, let’s assume that we have invested 20% of the total amount of BTC (approximately 3 million) in the stock exchange. Suppose a 50% partial reserve is applied in the stock exchange. With this implementation, Bitcoin will double and the initial amount will increase to 6 million. (In 3 million real BTC blockchains, 3 million on the personal accounts of virtual BTC exchanges).
In this way, it is possible for the exchange, which applies a partial reserve, to create inflation in the Bitcoin ecosystem.

World Cash Win Coin opens its own stock exchange on May 28, 2021, on the Republic day of Azerbaijan.

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