In the past, just a few years ago, when Bitcoin was worth just a few hundred dollars, it was fine to think in terms of Bitcoin as the main unit, and many people would actually mine, buy and transact whole Bitcoins on the regular. But as we see Bitcoin rise above $50,000 again and even higher in the future, there are calls in the space for starting to use SATS as a way for everyday users to think about their Bitcoin holdings and transactions.
Following years of discussion in the crypto space to implement the Satoshi (SATS) Standard, AAX has become the first crypto trading platform to make the switch to SATS, prompting more exchanges and industry players to make similar moves. The switch to SATS has been picked up by more industry players including Bitfinex, and Coinmarketcap.
More than just a change of interface, AAX’s SATS/USDT spot market enables users to trade with as little as 10 cents. For orders above 50,000 SATS (approximately $25 USD), traders are redirected to the BTC/USDT market.
AAX believes that the adoption of SAT as a unit of measurement is an important and long-overdue process for the cryptocurrency community since the new standard contributes to the spread of Bitcoin and helps new people, especially those from unbanked communities and regions with a lower level of cryptocurrency awareness, make their first purchase into this new form of sound money.
In May, Mike Novogratz, tagging Coinbase, Kraken and FTX, called on crypto exchanges to switch to a Satoshi Standard, referring to the growing number of people saying the high price of Bitcoin stops them from buying it:
While Coinmarketcap added SATS to its rankings the day after Novogratz’ tweet, there were no responses from the exchanges, until a few weeks later:
Following AAX’s announcement to heed Novogratz’ call, one prominent Bitcoiner and author of “21 lessons: what I’ve learned from falling down the Bitcoin rabbit hole” pointed out that the discussion had been going on for quite some time already.
Apart from hints by some exchanges such as OKCoin, it was Bitfinex who was next to make a significant move, announcing:
“We are confident that this is the beginning of an important trend and we are delighted to be at the origins of a new on-exchange metric system. I urge crypto exchanges and payment systems to pay attention to popularize the new standard as soon as possible, as this is the only real way we counter the idea that the Bitcoin ship has sailed and it’s only for the rich”, Toya Zhang, the Deputy COO of AAX, added on the matter.
It’s very easy for new crypto traders to get attracted to meme coins such or Dogecoin and Shiba or even more serious tokens such as XRP, simply because they are ‘cheaper’. The dream, with Dogecoin, for example, is that the meme coin will one day reach a value of $1. Consequently, those who might need it most turn to hype money, unsound money, or riskier investments. The widespread introduction of SATS as a unit can correct the situation as it removes price bias.
“Of course, in addition to this market and balance switch, we also understand the need to expand the Lighting Network to simplify deposits and withdrawals and bring down associated fees, but AAX is taking the first step in this direction today — offering to buy SATS in the amount of 10 cents or more without commission,” as Toya Zhang concluded.
Due to the smaller trade size market makers on AAX are deploying alternative hedging techniques and although small, within larger BTC movements this local market for SATS can be expected to chart its own unique price fluctuations. To optimally protect small holders, for any order above 50,000 SATS users shall be directed to the main Bitcoin market.
The transition to a simplified standard comes as part of the AAX initiative to make onboarding easier for new crypto users. On August 5, the exchange canceled commissions for all spot pairs. Users are now able to trade SATS for free as well.
About AAX
Favoured by a million users in over 100 countries, AAX is the world’s first crypto exchange powered by LSEG Technology, and the first to make the switch to the Satoshi Standard (SATS) to drive the adoption of Bitcoin.
The exchange charges $0 fees across all 80+ spot markets, offers high-yield savings packages, deeply liquid futures markets, regular discounts on major tokens, and a range of on-ramps that make cashing in and out of crypto easy.
Connecting traders, innovators, NFT-artists, high-net-worth investors as well as the unbanked, AAX’s mission is to help ground digital assets in the real world and bring the benefits of sound money to everyone.
