There is a seemingly endless series of bad news for cryptocurrency exchanges lately. Just recently, Binance was hacked via a third party trading tool and last month Bitgrail went insolvent after losing $170M in a series of ‘unauthorized transactions,’ a.k.a. a hack.
The critical technical issues and security threats facing even the premier exchanges has led investors to look for alternatives to buy, sell and exchange their cryptocurrencies while they await the mass implementation of atomic swap technology.
One such innovative alternative is Flyp.me, a new platform that allows users to instantly exchange up to 15 different cryptocurrencies directly from their wallets without the need to register an account on a centralized, third-party exchange.
Interested in Flyp.me? Here’s a quick rundown of the project:
Platform & Developments
Flyp.me offers a unique alternative to traditional cryptocurrency exchanges. With their accountless, private exchange platform, they have enabled traders to swap coins directly between the wallets they own.
Flyp.me’s whitepaper cites the following as the main pillars of their project:
- Accountless Experience
- Uncompromised Privacy
- Fastest Speed
- Profit Sharing
- Participatory Policy-Making
- Transparency and Accountability
- Permissionless API
What jumps out most from their launch features is the attractive profit sharing and permissionless API, which will allow for independent development and enterprise adoption moving forward. This will ultimately lend itself to a more pervasive platform, that promotes further adoption with increase reward kickback due to higher volumes.
FYP also allows large stakeholders (200,000 FYP or more) to conduct audits on volume and fees in order for the community to be completely informed. This level of transparency is rarely found among other exchanges.
Exchange rates that are applied for each transaction are based on the average rates of other exchanges, market depth of the chosen coin pair and reserve funds. This results in an average exchange rate that is seemingly fair relative to other exchanges. Flyp.me doesn’t explicitly state what they charge as a transaction fee, but the financial modeling in their whitepaper shows that they apply in the ballpark of 2%.
As you can see from the table, the revenue redistribution system is a very attractive feature for investors when the platform is at scale. According to the graph below, as detailed on the Flyp.me website, the trading volume had increased month over month since they launched until February. What is very promising from this graph is that the large jump seen during the bullish December run was sustained into January, where volume largely dropped off in the market across all exchanges. We will see how March plays out to give real direction to Flyp.me’s growth.
Flyp.me is doing about 400 BTC in monthly volume, as compared to Binance’s 222,175 BTC daily volume.
Here’s the list of cryptocurrencies currently supported on the Flyp.me platform:
Flyp.me has detailed some future innovations that they hope to include moving forward:
- Decentralized Asset Platform – eliminate server downtime and reduce reserve funds
- 2nd Layer Solutions – instant off-chain transfer of ownership of different cryptocurrencies and tokens, without the need of a trusted third party. Implemented alongside the Lightning Network.
- Atomic Exchanges – reduce costs and enable decentralized cross-chain trading
- Cryptographic Auditing – proof of reserves, volumes and profits to avoid any potentially fraudulent activity
- Adoption-Based Rewards – incentivize investors with additional reward systems.
Together, these elements add a clear value curve to the development path of this project, if implemented in a timely and proper manner.
With any blockchain project, we look to understand the underlying use cases attached to the issued token. According to the Flyp.me website, FYP Token owners receive several benefits including profit sharing (50% of monthly revenue), the ability to propose new features or coin additions and vote for key decisions.
FYP Tokens are ERC-20 Tokens that can be bought at HitBTC, EtherDelta and are now exchangeable directly on the Flyp.me platform.
Flyp.me is built and managed by the team at HolyTransaction, one of the first multi-currency wallets and the oldest still active. The team is active across all social media platforms.
Flyp.me staged an ICO where they raised 3,799 ETH back in October 2017.
The Flyp.me token currently trades at around $0.15 (~$2.7M market cap), with a circulating supply of 17,638,681 FYP and a total supply of 35,277,363 FYP.
Flyp.me definitely offers a unique solution to the rapidly growing issue of cryptocurrency exchange reliability and security. We are interested to see how the monthly trading volume grows, as the platform is primed to drive significant investor value if properly implemented.
Disclaimer: The author of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.