Local cryptocurrency exchange platform PDAX announced that it is fully prepared for the expected fluctuations in the digital currency market in anticipation of the upcoming Bitcoin halving.
“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,” PDAX CEO Nichel Gaba said during “What’s Halvening? Token Tales and Toasts” session at Rockwell, Makati City, on Tuesday.
The Bitcoin halving occurs roughly every four years wherein the reward for mining new blocks is slashed by half. This reduction slows the introduction of new Bitcoins into circulation, a mechanism that has historically triggered increased market activity and notable price fluctuations.
The anticipation surrounding the halving has intensified following the U.S. Securities and Exchange Commission’s approval of spot exchange-traded funds (ETFs), making it easier for retail and institutional investors to buy and engage with Bitcoin directly. This development has played a crucial role in propelling Bitcoin’s price to an all-time high 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.
In terms of the platform, PDAX said the bear market in the past few years gave them time to gear up for this year’s market.
“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.
As to the country’s regulatory landscape for cryptocurrency, the PDAX CEO noted the constructive stance of the local regulators towards financial innovations and how this level of oversight is crucial for platform integrity and user trust.
“What happened since the crash of Luna and the bankruptcy of FTX really made regulators aware of the risks of platforms that are unregulated. I cannot overstate the significance of a platform being regulated. Regulated means that the BSP visits PDAX and makes sure that we are processing transactions correctly, every quarter we have to report any significant change in our platform, and we’re also bound to conform to the guidelines that they set,” Gaba explained.
“A lot of what the BSP and SEC have been doing in the past year and a half is not just to create new rules that can safeguard the public but to enforce already existing rules. As crypto becomes much more popular moving forward, we can expect the regulators to continue to raise the standards,” he added.
Launched in 2018 and regulated by the Bangko Sentral ng Pilipinas, PDAX stands as the country’s leading cryptocurrency exchange, offering a secure platform for trading over 70 assets, including cryptocurrencies and tokenized bonds, with plans to expand its asset offerings.
As part of the PDAX commitment to user engagement and market participation, the platform has announced that they are giving away free Bitcoin to new users who sign up, verify their accounts, and start trading between March 27 and April 30, 2024.