Let’s face it, the reputation of cryptocurrencies as an investment has been pretty poor among people who are not familiar with the blockchain technology and the crypto market. There are many reasons why crypto is still seen as the black sheep by the potential investors but all of them come up to one and main problem.
Cryptoexchanges and currencies exist in the isolated environment which lacks regulation, we want to change that. In this article, we aim to cover how Tokenomica’s Digital Assets Exchange solves problems of the market and what makes our exchange special.
Security and Regulation
Over the last couple of years, a plethora of articles was released stating the main problems and risks of crypto investing. Reading through most of them, it’s easy to notice that most people see the high potential for hacks as the main disadvantage of crypto trading. In 2018 alone, over $1 billion worth of crypto assets have been hacked & stolen from centralized exchanges.
But most of these articles lack the part which seems the most important to us. What happens after users lost their funds due to this hack? What users can and should do after the hack? Were these exchanges somehow legally responsible for the funds that were held in their custody?
The sad truth is: in most cases, users lost their funds for good without any possibility to get at least part of it back and exchanges had no legal responsibility to users. This would not have happened if these exchanges were regulated which makes us believe that the lack of regulation is the main problem of the cryptomarket.
At Tokenomica, we believe that the global acceptance of blockchain technology and cryptocurrencies is possible in the regulated environment only. That’s why the main goal of our exchange is to provide traditional and institutional investors as well as a global crypto community with an opportunity to exchange their assets in a fully regulated environment that is focused on the investor protection and the quality of assets being offered to them. Along with that, we are legally responsible and not anonymous.
1) We believe that legal compliance and proper regulation is the best way to boost the acceptance of blockchain technology to a broad audience;
2) Regulation and legal compliance provides security to our users;
3) Along with that, it allows us to build a fully legal fiat gateway which will be available in the near future. Another thing that is vital for the legal fiat gateway is KYC that is required on our platform for all users.
Quality of Listed Assets
One of the great qualities for an investor is the ability to research the cryptocurrency before investing in it. The only problem is that the market is overflowed with useless tokens. Along with that, even after many unsuccessful projects, there is a tendency for most to overlook the fundamentals of the cryptocurrency and make investment decisions based on the hype. This is especially common since many do not understand the mechanics of the cryptocurrencies that they are investing in. They tend to just follow the hype. Along with that, many exchanges are ready to list as many types of assets as they can without even checking if these tokens are safe for users.
Just like many other people, we are tired of countless numbers of useless tokens. We want to provide our users with quality assets only. For this reason, we thoroughly check all tokens before approving them. Any token that is to be listed on Tokenomica needs to adhere and be qualified as Virtual Financial Assets (VFAs) under applicable laws in Malta, which should be confirmed by a legal opinion from a qualified VFA agent.
Another important problem for the vast majority of exchanges on the market is the lack of transparency. It’s a gigantic problem that consists of many parts but what we want to take a look at is the transparency of gateway services.
Gateway is an essential part of every crypto exchange but in most cases, they lack transparency. Users are not aware of the complete flows of their assets and very often do not have any information about their funds until they reach their final destination. The other problem is that users don’t know if assets that they are trading on the platform are backed with assets that were placed by them in custody of the exchange. Most exchanges create these tokens that are traded on the exchange once and have them reserved on the exchange after this. This means that users don’t have any information about the amount of tokens that are in custody of the exchange.
We settled for a completely different approach. Assets that were issued outside of Waves blockchain and traded on Tokenomica are created every time when the corresponding transaction is registered, so there is no possible way that Tokenomica runs out of them. Every single gateway token is backed 1:1 with the real non-Waves assets transferred by a user. A user receives the same amount of assets to the amount that was initially transferred to the gateway. Users can check the number of assets available on Gateway wallet at any time.
Don't miss a chance to take part in our Early Bird program! Be one of the first 1,000 users to register on Tokenomica's Digital Assets Exchange and receive 10 Waves after registration is finished! http://vfa.tokenomica.com