PDAX ready for the post-Bitcoin halving

AS we edge closer to the Bitcoin halving, a pivotal event in the cryptocurrency world, expect some changes in the market. PDAX, a leading local exchange platform, is all set to tackle the potential market shifts this significant event might bring.

“When Bitcoin started going up in price, and customers started coming to our platform. That was a real test of our platform five years ago. That’s bound to happen again. But I guess the difference between that happening four years ago versus today, as far as feedback is concerned, is that our platform is ready,” Nichel Gaba, PDAX chief executive, said during the “What’s Halvening? Token Tales and Toasts” session last March 26.

Bitcoin’s protocol incorporates a mechanism to reduce the rate of new Bitcoin creation by half approximately every four years. This mechanism is known as the Bitcoin halving. Before the May 2020 halving, the block reward was 6.25 BTC. This month’s next halving will reduce the reward to 3.125 BTC per block. This controlled scarcity is essential, as it can influence Bitcoin’s price, but market dynamics are complex, and no price increase is guaranteed.

With another halving coming up and more investors getting interested, things could shake up in the market. The anticipation is palpable, as the US government’s approval of Bitcoin ETFs has substantially eased the entry barriers for potential investors. This critical development has contributed to driving Bitcoin’s value to an impressive new peak of $73,737.94.

“This is the first halving event where there are already institutional participants in the crypto market. Now that institutions are in the crypto space, we can expect whatever excitement propelled retail investors to take Bitcoin to $72,000. You can just imagine how much more that would be when institutions are also in the market. That’s why this upcoming halving is truly important,” he added.

According to Gaba, the involvement of major players like BlackRock and Fidelity could amplify price increases due to the impact of halving on scarcity. Another critical point is the potential for increased cryptocurrency adoption in the Philippines. Platforms such as PDAX are streamlining the accessibility of cryptocurrency assets, potentially catalyzing widespread adoption and integration of digital currencies nationwide.

“Before the approval of ETFs and the Bitcoin halving, we’ve been preparing our systems for it, making them more stable and secure. We work with various organizations to make the frameworks up to stuff. The idea is that if a user wants to get in on the action, there’s an easy way to do it, and there’s a secure way to do it. We are not stopping, and we’re continuing to improve our platform,” said Vincent Tio, head of Platform Solutions at PDAX.

The events following the Luna crypto crash and the bankruptcy of FTX (a cryptocurrency exchange based in the Bahamas) have heightened regulator awareness of the risks associated with unregulated platforms.

Gaba emphasized the critical importance of regulation in this context. Being a regulated platform means that the Bangko Sentral ng Pilipinas (BSP) conducts regular checks on PDAX to verify that all transactions are executed accurately.

Gaba noted that PDAX, adhering to the standards of a responsible crypto exchange, complies with the BSP and the Securities and Exchange Commission’s (SEC) quarterly reporting demands and follows their stringent regulatory guidelines. These regulatory bodies have ramped up their efforts over the last 18 months, introducing new regulations and reinforcing existing ones to protect the public amid the cryptocurrency market’s rapid expansion.

Gaba expects that with the ongoing rise in cryptocurrency adoption, regulators will introduce even more rigorous standards to maintain a safe and dependable trading environment.

Launched in 2018 and regulated by the BSP, PDAX offers a secure platform for trading over 70 assets. PDAX is the official crypto partner of UnionBank’s (UBP) digital business solutions partner referral program. The exchange also promotes user engagement by offering free Bitcoin to new users who sign up, verify their accounts, and start trading between March 27 and April 30, 2024.

One strategy Gaba offered to those new to cryptocurrency is cost averaging, emphasizing the importance of investing within your comfort zone. In cryptocurrencies’ unpredictable and often volatile world, only invest in what you truly feel confident about.

You can find further details on their official website: https:// pdax.ph/