Meet “Caspian”: a single platform to interact with different exchanges

Blockchain technology opened up a new universe of possibilities about how people could handle every type of information there is thanks to its decentralized nature and immutability, because of this, the industry has been on a non stop growth since its inception, not only when it comes to the monetary value of all the different crypto currencies and projects, but also in the amount of effort, ideas and people that are investing their time and energy into creating new projects with the potential to improve people’s lives, all through their particular way of implementing blockchain technology.

Since the industry is relatively new, there are constant innovations and constant changes taken part, and it could end up being challenging for those who are interested in this to be always informed about what are the latest news and events that should be taken into consideration when figuring out the best trading moves in order to achieve the best results.

On top of this, not every crypto currency can be traded on every exchange, there are multiple exchanges, all with different interfaces and ways of operating, all with different availability of less known tokens, and since the industry needs to have a lot of investments if it wants to succeed, from a general perspective, it is a good thing for there to be a lot of alternatives offering potential investors and users a different options so they can get involved and handle their assets the way they want.

However, since the speed everything advances in the crypto sphere is incredibly high, being constantly on top of every different exchange and every trading strategy being applied depending on which tokens are available on each exchange is clearly overwhelming, it could easily cause traders to decrease their efficiency and frustrate them due to the lack of sophisticated tools that could solve issues like the current fragmentation in the crypto exchanges.

Current issues affecting traders in the crypto industry

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Even though the market capitalization of most major projects is will into the billions, there could be cases of some exchanges not having enough funds to execute certain orders of a considerably big size due to potential liquidity issues, in these cases it could result in trades being executed at prices that weren’t the expected ones by one or both parties (buyer and/or seller).

Besides, given the way this industry works, there are individuals who got involved in the early stages of successful projects, allowing them to have holdings big enough to cause strong price swings simply because a single individual is moving his holdings around, this could also allow for pump and dump groups to proliferate, which is something that doesn’t bring any value to the industry and is certainly a problematic dynamic that should not be happening.

Pump and dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements | Source

Since there is no interoperability between exchanges, individuals who should take precaution measures given their amount of capital invested and their trading activities happening in several exchanges, have unfortunately no way to automatically monitor their holdings, unless manually checking each and every single one of the different exchanges, and clearly this it not something very efficient.

Regulatory procedures is another aspect that doesn’t have a standard way to be approached in the crypto industry, which forces individuals and institutions to figure out on their own how to best keep track and record every single transaction they made as well as every revenue for legal purposes, this becomes harder and harder as more exchanges are added to the trading activities.

Taking into account everything mentioned so far, it is clear there is a current need to have a platform that could help people who are participating in trading activities using different exchanges to unify their workflow into a single place.

This is where Caspian comes into action.

The Caspian solution

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Caspian is basically a platform that will integrate different exchanges already in existence into one single place, allowing people a much easier and practical way to manage their tradings and holdings without any complication and without the burden of having to constantly monitor each and every exchange they are using, currently Caspian is connected to more than 10 exchanges which are: Binance, BitFinex, Bitflyer, BitMex, BitStamp, Bittrex, GDAX, Gemini, HitBTC, Huobi, ItBit, Kraken, Poloniex, Quoinex. And in the rest of the year, they will keep adding more and reach a number as high as 40 exchanges, all compatible with Caspian.

It was developed in a way that allows for different methods of implementation to take place, so any type of trader whether it is an individual trader or large scale entities can integrate this platform in several ways to simplify their activities. This implies there is also an extensive support team ready to offer specialized help to solve doubts or issue users might encounter.

The Caspian solution can be divided in 3 sections:

Order Execution Management System

Caspian will allow its users to quickly place orders in different exchanges while using the same interface, this is possible thanks to the integration developed that allows for the Caspian platform to communicate with each exchange, and provide the resulting information in a unified way to the final user, this can allow for faster movements, and more efficient trading strategies.

The same functionalities available in common exchanges will also be present in the Caspian platform, the only difference would be the ease with which to change the operations from one exchange to another one, and in the case of organizations, there will also be the possibility of assigning roles to different users, like for example: “portfolio managers, traders, compliance officers”, | Source besides, in order to keep everything under control, there will be an “Audit report generation for all activity” | Source so every single transaction and decision will be registered for safety reasons.

There is the plan to add an extremely valuable functionality for traders called “Transaction Cost Analysis” that would take into account the available information in all the exchanges and inform the user which one has the best condition to perform a certain trade. This feature is similar to another more sophisticated one called “Smart Order Router” that will allow to place orders to different exchanges at the same time taking into consideration information related to the price, availability of the tokens and fees, with the goal of performing the trade with the most convenient circumstances. Placing a large order through several small ones in different exchanges will also be possible by using this platform.

Since cryptocurrencies are ones of the most volatile assets in the world, and it is impossible to be 24/7 checking charts and any changes in the prices, Caspian will have a built-in system of notifications or alerts, so any user can instantly be informed about any important event that could represent a reason to change his trading strategies. This is particularly important because there might be cases of extremely important news that can affect the market and traders need to take action really quickly in order to take advantage of the opportunity it represents, or maybe to avoid further damage to their holdings.

Position & Risk Management

Extensive and reliable information is always needed when doing analyses about the decisions that were made in the past and decide whether some changes are needed or not. Caspian allows its users to have access to historical data in a fully customizable interface so the platform is the one adapting to the user’s taste and not the other way around, every indicator a professional trader needs will be provided by Caspian including those from previous trades even if the exchanges used were different, and with the goal of providing further security that trades were made correctly, doing the corresponding reconciliation will be something very easy to do.

Regarding risks assessment, there will be the option to run simulations and evaluate how the particular portfolio could perform under difficult conditions, and fine tune any potential flaw that could be present in the current trading strategy, this would of course allow for anyone taking advantage of this feature to increase the efficiency of the decisions taken and in the end, this will make it easier to achieve better results thanks to the extra information retrieved from the simulation.

Compliance and Reporting

Performing trades is something that shouldn’t be taking lightly, with Caspian there will be limits that will restrict certain operations to take place based on a previous configuration from the user. This is to have complete control over any trading activity and avoid suffering from costly mistakes. The types of limits before doing a trade that can be imposed are the following:

warning limits, which can be overridden by the user; approval limits, which require a supervisor to approve the order before it can be sent to market; and absolute limits, which cannot be overridden. | Source

After a trade is done, the actions that could be triggered are notifications that inform another authorized individual about everything that is being bought and sold.

To allow for a further order in relation to trading activities, Caspian will have the possibility to provide reports about several indicators like “Orders, Executions, Positions, P&L, Exposure” Source using not only data from Caspian but also from other sources, and display that information through automatically created documents or simply through the web. This is clearly a feature extremely important for professional traders or large entities with trading activities, and will automate a lot of administrative tasks, giving free time to more productive activities.

Caspian potential impact in the crypto industry

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By allowing all types of traders a reliable way to simplify their job, achieving good results when planning a trading strategy will become something less demanding, people will have access to much more information on a single platform and that will allow them to have a better criteria and take better decisions as a result. The amount of time saved thanks to only needing to use 1 platform for trading across a wide range of different exchanges is clearly very attractive for those wanting to optimize their time as much as possible.

Trading and cryptocurrencies in general, could even become more well known as an increasing number of people realize all the available and easy to use tools there are at their disposal, if people are aware of how simple it is to get involved in this industry, and how easy it is to manage and trade their investment in a proper way with all necessary analyses and indicators in case they need it, then the adoption could keep growing even at a faster rate. We need to have in mind there are a lot of individuals who so far had decided not to get involved with cryptocurrencies due to complications associated with a lack of proper tools to manage this type of investments, but Caspian should be able to provide solutions as well as allow investors and professional traders the same level of sophistication they have in the traditional markets.

Regarding institutions, since Caspian has built-in mechanisms to facilitate audits, reports, managing limits, setting alerts, among other advanced features that are necessary for these entities, it could therefore, be the platform that might convince some of them to eventually get involved and bring new investments into the industry, because in the end, Caspian is capable of offering the highest level of sophistication there is regarding crypto trading platforms.

Use case

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Case #1: Individual investor

Charles is a guy working in Forex, he is an expert analyzing trends, and identifying which stock have a good possibility of giving a good ROI. He is of course interested in the crypto industry and decides to open a few accounts in some exchanges.

After a few weeks trying to get a handle and get use to how this new industry operates, he is starting to get frustrated due to several complications in the exchanges he is using, like for example, there are not enough liquidity which causes for the final price to be different than the one he was expecting. This happens because instead of placing several small orders on different exchanges, he is trying to optimize his time and only place one big order on one single exchange, causing the price to move more than he would want.

Luckily for him, he discovers Caspian and since he is now able to access several exchanges through one platform (which saves a lot of time), he can now see information and indicators from several places, and easily place small orders simultaneously on different exchanges to avoid causing any slippage.

Case #2: Institutions

There is a particular institution whose activities are mainly trading bonds and stocks, they are aware of the potential in the crypto industry but there is a lack of tools that could provide the features they need, mainly an automatic process that deals with audits and reports for legal reasons.

However, one director discovers Caspian and after trying it out and testing it really works as it should, the company decides to get involved in the crypto industry through the use of Caspian platform to manage their investments. This way, the company ends up increasing its revenues, and there are more resources fueling innovation in crypto projects.

The token

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The token using by the platform is called “Caspian Token (CSP)”, and although it wouldn’t be necessary to have access to the platform, it could provide certain benefits to the users who decide to acquire them. For example, fees could be covered by potentials earnings and discounts resulting from holding the token.

Since technology advances very fast, especially in the crypto sphere, there will be the option for any developer to create applications compatible with Caspian, and this type of activity will be rewarded by using the token. This will not only ensure Caspian remains a state of the art platform, but will also create a productive dynamic where third party developments are encouraged on a sustainable way.

Summary

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There is currently a strong fragmentation with the different crypto exchanges that can make activities hard to monitor for people who use several of those exchanges. The need to check one by one each and every single exchange makes it very time consuming and very inefficient, besides, there are problems related to liquidity issues when handling orders of certain sizes, and there is a lack of sophisticated tools for more experienced traders.

What Caspian is offering consists in a platform that allows users to manage their activities on different exchanges by just using the Caspian platform and interface, and there are also advanced features that can provide further control as well as automating certain administrative procedures.

Taking into account everything mentioned so far, Caspian can be a project that will certainly make everything easier to busy traders, whether they are small or big.

The team

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The people behind Caspian clearly have an extensive experience in related industries.

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Advisors

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The roadmap

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