How Token Issuers And Holders Benefit From Quoine

in #quoine5 years ago (edited)

Various services and projects are being built on Blockchain technology. This has resulted in the creation of over a thousand crypto tokens by the project owners who need people's assets to facilitate their projects. In order to raise the needed funds and have a system where each party involved (project owners/token issuer and investors/token holders) gain mutual benefits from the projects, project owners have to give the job to ICO campaign managers who are in charge of creating these crypto tokens and distributing them to the investors according to the plans laid by the project owners.

As soon as these new tokens are launched and hit the market, the token holders can start trading them. And if things go according to the plans, the tokens should have great liquidity which will allow it to continue to rise in value. However, there are lots of challenges that are facing the cryptocurrency industry, and preventing the set-goals from being easily achieved.

The challenges to token issuers

Token investment is becoming the way of venture investment these days. 2018 has been a very important year for the cryptocurrency industry as many ICO campaigns have been launched successfully and it is only a matter of time before this innovation campaign becomes the real way of fundraising. The first half of the year 2018 has seen more than three times of the total ICO projects that were done throughout 2017. What is more, these ICO projects raised more than four times of what was raised in 2017, therefore showing the strength of using ICO for fundraising and how this keeps growing. But many of these tokens that are being created are not doing so well in the markets due to the lack of liquidity. This is a great concern for both the token issuers and holders who have their assets tied in these projects.

Lack of liquidity is a general challenge in the crypto industry. However, as regards newly-issued tokens, it is in a higher degree. For instance, Avinoc token was valued around $0.5 when it was launched a few months back but surprisingly, it dropped to $0.1 in the next few hours. Just 24 hours after launch, this token became so volatile that traders had to keep away from making sale or purchase orders. You check the token price now and see $0.04 and in the next few minutes, you see it rises to $0.15 and vice versa. This volatility has kept the token in the downtrend for months after launch and as much as it has a huge side effect on token holder’s assets, it is not healthy for the issuers as well.

Volatility is caused by a lack of liquidity in the market. And since newly issued tokens are very weak and cannot stand what comes at them on exchanges due to lack of liquid, they become so volatile.

How Quoine provides aid for token issuers

One of the exchanges built by Quoine is QRYPTOS, a "crypto-only" exchange which has the potential of solving the liquidity challenges for tokens in the markets. The information below is extracted from Quoine's Liquid whitepaper, telling us about how token issuers can leverage on the benefits of this exchange;

QUOINE will open its Crypto-only exchange, QRYPTOS, to token holders and token issuers except for Crypto Tokens that would be categorized as securities or some other regulated financial products that QRYPTOS cannot handle with will not be listed in QRYPTOS

Token issuers can benefit from the QRYPTOS exchange as this exchange has the ability to support the newly-issued tokens and provide liquid for them. Not only that, Quoine's Liquid platform has highly functional technologies such as World Book with its Engines (Matching Engine, Cross Currency Conversion Engine, and Smart Order Routing) and Market Data Services, coupled with specialized market-making strategies. All these will allow market-making for the newly-issued tokens and in turn, the creation of liquidity and fair pricing.

How the token holders benefit from Quoine

As we already know, token holders acquire their tokens by giving out their digital assets, and sometimes, they purchase these newly-issued tokens with fiat currencies. These assets are tied to the newly acquired tokens and whatever happens to these tokens happen to the holders' assets. In as much as this is how it is, the benefits enjoyed by token issuers on the Liquid platform and QRYPTOS exchange will benefit the token holders as well. Liquid platform will provide liquidity and market stabilization for these tokens and hence, their value will rise; which is what token holders want in the first place.

As much as traders can put their QASH tokens to some work on Liquid, so also can they lend out other tokens on QRYPTOS. When they do this, they make profits as their tokens are loaned out to bring in returns for them. This will also increase liquidity for the tokens and will benefit all parties involved in trades.

Another benefit for token holders on Quoine is that they can liquidate their tokens without affecting the tokens markets (regardless of how big their shares are) or using third party services; which can lead to information leakage. The Liquid platform is empowered with tools needed to liquidate tokens and this will prevent unnecessary information leakage, hence making their digital assets more secure.

How innovators and the general society will benefit from Quoine

The new wave of innovation in the finance world is Fintech. This system that Quoine brought on Blockchain technology will pave way for a totally revolutionary financial services system. With this, the over 2.5 billion people that do not have access to banking services across the globe will be banked by Quoine. Financial services have been made accessible to the general public without any regard for class or status. No more restrictions, no more closed doors.

The established relationships between Quoine and high-profile banks, and big establishments, the highly-secure frameworks, multi-functional technologies and other resources that distinguish Quoine from all others in the industry will benefit the finance world, the innovators who are bringing new services onto Blockchain technology, the crypto enthusiasts who trade and invest on tokens and the world economy as a whole.

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Disclaimer

The information contained here shall not be used as a guide in your next crypto trade. The writer is not a financial advisor but a crypto trader just like you. Information presented in this post is for educational use only.

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