Cryptocurrency trading platforms are in the news seemingly every week. Just in the last few days, Binance and Poloniex were all the subject of alleged hacking rumors and it was announced that startup DDEX received an investment from Reddit co-founder Alexis Ohanian. These exchange platforms are an integral element of growth and mainstream adoption of the cryptocurrency movement, but not all are created equally.
While each platform offers a different user experience and list of trading pairs, the lack of truly innovative features has left a lot to be desired. What’s more, most exchanges suffer from little to no of transparency, limiting any real cross-talk between those in charge of implementing platform features and the trading community. As cryptocurrency trading becomes more mainstream, there is an opportunity for new exchanges to make a name for themselves.
One emerging exchange primed to take a significant market share is trade.io, a next-generation blockchain trading platform that aims to democratize the financial markets and redistribute wealth back to investors and companies, through reducing and eliminating fees and inefficiencies by utilizing its innovative trading platform.
Trade.io’s platform boasts a number of exciting features, including a unique liquidity sharing system where Trade Token (TIO) holders can contribute a selected amount of the assets contained within their wallets to a shared, P2P liquidity pool in return for 50% of the daily revenues generated by trade.io. Furthermore, to kickstart this liquidity system, trade.io intends to seed the pool with approximately $50 million cash, as well as 50 million Trade Tokens
With aspirations of becoming a full-fledged investment bank, Trade.io aims to set itself apart from other blockchain asset exchanges. In this investment bank model, Trade.io will assist companies in becoming “tokenized” or listing on the trade.io platform. Trade.io has already partnered with a number of early adopters who are committed to utilizing their technologies or intend to ICO/IPO on the trade.io exchange.
Given the current crypto exchange regulation talks, trade.io has taken a very conservative approach in each step of their development to assure compliance. They are currently pursuing the proper licensing for the variety of services they intend to offer, including AML/KYC regulatory requirements and a FINMA license.
With trade.io’s launch slated for April/May, we look to highlight the key features that will help set their platform apart.
Interested in trade.io? Here’s a quick rundown of the project:
Platform & Development
The trade.io platform was designed for a customizable and intuitive trading experience. Here are the major platform features, as detailed in the trade.io white paper:
- Instant account verification
- Industry’s only fully customizable trading platform
- Intuitive user interface, built on scalable infrastructure
- Low fees and no deposit fees
- 24/7 support in multiple languages
- Wide range of most popular instruments, chosen by platform users
Trade.io guarantees that they will resolve any support ticket within 24 hours. As a comparison, we’re still waiting for a response to our support ticket on the HitBTC exchange from weeks ago. These types of overlooked nuances can make all the difference for a new exchange.
The trade.io platform token is the Trade Token (TIO), which is an ERC-20 token. TIO has two major use cases:
- As a requirement to participate in trading on the trade.io platform.
- As a membership coupon that grants access to the trade.io shared liquidity pool. Those who lock up their TIO tokens (at least 2,500) will be able to contribute fiat, crypto and eventually other listed assets to the pool. There are multiple tiers of token locking, each with an increasing asset contribution maximum and accompanying % return on pool profits.
Those who contribute their tokens and assets to the liquidity pool can expect daily payouts that come from the following platform revenue sources:
Spreads: All trades have a difference in asking price and selling price. This is called the spread. 50% of the earnings made by the platform through spreads will go into the liquidity pool.
Commission: When spreads are very tight, the little room for profit margins in spreads means that the broker cannot earn profitably while making deals. This leads to a commission based incentive. Again, half of all the commissions that platform makes will go into the pool.
Aggregation: The platform combines all unmatched orders into one single large order before execution so that unprocessed transactions can be executed and a good spread and commissions are earned on it.
Risk Positions: Risk management is done using propriety algorithms and leveraging on the micro and macro level, maximizing profit potential for the liquidity pool.
Loan Interest: Users can earn by loaning their wallet assets to others and earn interest on it. Same as all above, half of the profit earned goes into the liquidity pool.
It is important to note that there is a possibility that the trade.io platform will operate at a loss at times, and for any rewards to be paid out, the platform actually needs to be profitable.
From a technical standpoint, the trade.io platform features three major elements.
Web 2.0 Layer
Cloud server & data storage
The Web 2.0 layer will be hosted on the Azure cloud platform with a mix of decentralized and Web 2.0 technologies for file and data storage.
Trade.io is currently researching several blockchain platforms to expand the capabilities of the trade.io exchange in the near future.
After reviewing the upcoming milestones on the roadmap, the most important date is the much anticipated April/May platform launch. It has been stated that there will be over 200 cryptocurrency and other assets available on the platform at launch. The second important date to keep track of is the integration of established trading systems onto the trade.io platform. This is part of trade.io’s plan to offer Forex and derivative trading options for precious metals, oil, commodities, indices and global equities.
Trade.io is led by an experienced team with significant backgrounds in blockchain technology, capital markets and financial systems. Here are a few of the key team members:
- CEO Jim Preissler, a former investment banker and private equity investor with over 20 years of international business experience.
- CTO Charles Voltron, a blockchain developer with over 16 years of experience as a developer. He’s a serial entrepreneur who has held CTO & CEO roles.
- Chief Strategy Officer Manmohan Singh, a pivate equity investor and entrepreneur involved in various technology companies specializing in the fintech sectors.
- Chief Data Officer Ravi Condamoor, a blockchain & AI expert with significant background in fintech, retail, industrial internet and healthcare.
Trade Token (TIO) currently has a market cap of ~$20 million with a circulating supply of 84,285,536 TIO and a total supply of 223,534,823 TIO. Their low market cap offers a unique opportunity when reviewing the valuation of other exchange tokens, including Binance ($810M market cap) and KuCoin ($320M market cap).
Trade.io is primed to make a significant impact with their platform launch in April/May. The combination of their strong team, expansive platform offerings and unique liquidity system makes trade.io a definite project to watch going forward.
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Disclaimer: The author(s) 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.