ONAM CRYPTOCURRENCY EXCHANGE ; A REVIEW

donrep (36)in #ethereum • 5 years ago

Cryptocurrency exchange is a business that allows customers and cryptocurrency holders to trade cryptocurrencies or digital assets for other assets, or conventional fiat money or other digital currencies as the situation warrants. Some of these platforms where trading takes place charge transaction commissions for their services.

It is worthy of note today that cryptocurrencies like the Bitcoin, Dash, BitcoinCash, Ethereum, Ripple, Monero, Litecoin have become a global phenomenon with their success stories presently drawing the attention of the public.

CryptoCoin Charts in 15th of May, 2018, indexed 4 635 cryptocurrencies with a total 24h volume of $15.12 billion and $406.63 billion market capitalization. Out of all the cryptocurrencies, the Bitcoin stands out with a whooping 36% share of the total market capitalization.

The Cambridge University's Global Cryptocurrency Benchmarking Study estimates that presently, there are between 2.9 million and 5.8 million active cryptocurrency wallets. At least 1 876 people work full time in cryptocurrency companies. It is evident that the exchanges have the most number of functional entities as they employ more than any other sector in the cryptocurrency space.

Basically, these exchanges operate as either centralized cryptocurrency exchanges or decentralized cryptocurrency exchanges.

Centralized exchanges are trading platforms owned and operated by a company which maintains absolute control over all transactions. Users do not have access to private keys of their exchange account wallets. Therefore, users place trust in the hands of the exchange operators to manage funds, as transactions can only be executed through already established mechanisms provided and approved by the exchange operators.

On the other hand, decentralized exchanges are not operated by companies. They utilize the blockchain technology and execute smart contracts. They do not hold of control customers' funds, positions or information. They simply play the role of matching or pairing trade orders and routing layer for trade orders.

Centralized exchange platforms are currently faced with issues ranging from long downtime periods that create unnecessary panics, security risks, long and overbearing verification procedures, high transaction charges, hacking risks, high enytry barriers and so on.

In as much as there is a gradual shift towards the decentralized technology, most global financial systems still operate on centralized platforms especially in the crypto space. Many digital asset traders depend on third parties to execute asset trading. The decentralized system provides a more acceptable and reliable platform for peer to peer trading on the blockchain, eliminating middlemen and their incessant charges.

Onam is a state of the art cryptocurrency exchange specially equipped with trading tools and special features created to satisfactorily service users and create a niche for itself in the crypto world. It is designed with the necessary requirements that solve most of the challenges confronting trading platforms today.

Many hackers have targeted their activities at the cryptocurrency space, especially exchange platforms. This is because some exchanges are unsafe and suffer security breaches.

It is on record that a whooping sum of $266 million USD has been lost just in 2017 alone, and there are projections by security experts that more could be lost in the coming years if the necessary precautions are not implemented.

The uniqueness of the Onam project is it is cybersecurity conscious and does not take for granted the safety of users' data and funds. The developers on the platform have built an Advanced Threat Prevention, Intrusion Detection and trade Surveillance system.

With this system, any irregularity or threat can easily be detected and handled squarely. A compulsory quarterly third party security audit has been put in place to guarantee funds security.

Many exchanges face the scalability limitation, this is because such cryptocurrency exchanges are not designed to seamlessly absorb the influx of new traders in the market. They lack the capacity to accommodate new crypto investors and enthusiasts flooding the market.

This also brings to bare the inadequacies experienced in matching during high trading periods. Most users also face unnecessary delays in registeration for days and weeks by some of the most popular exchanges.

Onam exchange is built on a scalable design as it offers a qualitative exchange matching engine that can carry heavy load and also admit a large number of users expected in the nearest future. The platform can comfortably execute 10 million transactions per second.

Another major challenge exchanges face bothers around market manipulations in the cryptocurrency space such as spoofing, wash trading, momentum ignition to pump and dump amongst others.

All these counter the aim of crypto assets where the forces of demand and supply are manipulated to increa and reduce prices for sentimental reasons. This is unfair, unjust, inappropriate and highly unacceptable.

Onam has installed in it the Real Time Market Surveillance, Supervision and Compliance system using machine learning to track suspicious trading activities that manipulate the market. It exposes unusually large trades, spoofing, layering stuffing and other malicious activities to keep the system safe and healthy.

Some exchanges have a very poor customer care support system where customers and their challenges are not attended to on time and to their satisfaction. Issues that concern funds loss, blocked accounts, 2FA resets ietc. Some users are made to wait for weeks before they are given audience.

Onam is customer care sensitive, hence, it has created the best customer support platform in the industry to satisfy its users on a 24 hours, 7 days a week basis. With Live Chats in several languages poised to provide immediate solutions within the first 15 minutes after creating a ticket.

Liquidity keeps every exchange market afloat and relevant. Price fluctuations in very short intervals caused by poor order books, gaps between bids and asks create room for manipulations. Today, traders and investors alike find it difficult to exit the cryptocurrency markets when prices are most profitable, this is as a result of a deficiency of adequate liquidity.

The Onam team has embarked on activities that arouse the interest of heavy investors, traders and miners. And also established an incentive system with solutions to tackle issues that concern slippage and manipulation of the market.

Individuals and major investors looking out to participate in the market are skeptic because of the absence of trust in the whole system. This is due to the lack of a regulatory body in an unstable market. Though the SEC is doing its best in checking the activities cryptocurrency exchanges Initial Coin Offerings and other activities, its duties and performances are not encompassing enough for the crypto space.

With the statement made by the SEC emphasizing on the fact that all token assets remain securities and must be treated as such. Onam will abide by the statement and ensure all the necessary licensing and legal paperwork are obtained. This will make the Onam platform fully compliant and transparent to earn public trust and attract institutional investors.

Onam has created a scalable high performance trading platform with an unparalleled risk management feature, trade monitoring, exceptional trading tools and a very secure system that serves its users on a global scale with a multi language user interface to reach a large audience.

The Onam group has created an ERC20 standard built on the Ethereum blockchain which will be issued out during a crowdsale that will accept ETH and BTC. the total token supply is pegged at 300 million Onam tokens, of which 195 million tokens will be issued during ICO. Unsold tokens are planned for destruction.

The softcap is set at $2.5 million USD while texting hardcap is placed at $15.6 million USD. With the Onam tokens, users can access every feature on the platform and also save up to 50% on trading fees.