Designing with human nature in mind? Taiwan exchange ACE introduces a new principal-protected deposit product, promising returns of up to 45%

The well-known Taiwanese exchange ACE held a product launch event "ACEX TRUST PACKAGE" on the 10th. Since its establishment two years ago, the exchange has been continuously introducing marketing activities and products that attract attention. The guaranteed principal plus deposit activity introduced this time seems to have a somewhat complex design, with some suspicious aspects.

Due to the impact of the pandemic and global economic recession, banks offer low interest rates and it is difficult to find a secure investment target. As a result, more and more cryptocurrency exchanges and private companies are launching deposit services. This not only allows cryptocurrency investors to continue to profit in the volatile and uncertain market but also helps attract traditional investors to focus on other new types of commodities. The highlight of the product launch event "ACEX TRUST PACKAGE" by the well-known Taiwanese exchange ACE on the 10th is precisely this type of product that provides value preservation and higher interest rates.

Combination of 1+1: Principal Protected with Interest

According to ACE General Manager Pan Yizhang, the so-called ACEX TRUST PACKAGE consists of the platform token ACEX and the TACEX 10 token launched on April 13th. It is issued as a set, where purchasing TACEX 10 will give an equivalent amount of ACEX and the guarantee of the exchange's buyback at the original price.

Zheng Genqi, Business Manager of Asia Blockchain Enterprise (ABE) under Asia Blockchain Accelerator (ABA), explained: "At the end of the agreed time, the buyback will be fulfilled at the initial purchase price, and tokens in the form of 'one TACEX 10 + one ACEX' will be destroyed." This design involves exchanging crypto assets for a currency with "unchanged redemption value" to achieve stability and principal protection.

While ensuring principal protection, in conjunction with the exchange's fixed deposit product " ACEX Sweet Salary," users who meet a certain ACEX holding threshold will also receive fixed interest, up to 45%.

Pan Yizhang, ACE General Manager, stated: "With the rapid growth of registered users year by year, we hope to bring more diversified products to cater to the changing economic situation and investment habits of the new generation." Through the purchase with principal protection and participation in the exchange's fixed deposit activity, users can earn interest paid in Bitcoin.

Redundant? Some Suspicious Aspects

Many industry professionals and KOLs were invited to the event on the day of the activity, raising doubts about the profit mechanism of ACEX TRUST PACKAGE combined with ACEX Sweet Salary. For instance, if ACEX Sweet Salary is already a fixed deposit product, why introduce a token set of "one TACEX 10 + one ACEX" separately? Wouldn't it suffice to directly purchase the platform's ACE token and invest in the fixed deposit? The specific use of TACEX 10 remains unclear. It is reported that users in the exchange's Telegram group also expressed confusion about the rules.

However, some in the community believe that this seemingly redundant design is to provide arbitrage opportunities for existing ACEX holders. As ACE will simultaneously open spot trading pairs for TACEX 10, ACEX users can profit by purchasing TACEX10 at a low price in the market and combining it with their existing ACEX for the exchange's buyback. Because the repurchase price of ACEX + TACEX10 is fixed, there is arbitrage potential by buying at the right price. As the two currencies fluctuate, it may attract other users to hold or sell in pursuit of arbitrage opportunities. It can be said that this product is designed with human behavior in mind.

On the other hand, for users who directly purchase TACEX10 + ACEX through IEO, it is simply a principal-protected interest-bearing investment. The intention of the exchange is speculated to be partly to promote their existing fixed deposit product and to increase the trading volume of ACEX. Overall, users who purchase the token set through IEO do not incur losses and can earn interest. The key lies in existing ACEX holders, whether they can easily find arbitrage opportunities in response to market dynamics.