We all remember the rise of ICO projects in 2017 and the decline in 2018. Nowadays, the crypto community is observing the development of IEO. On the one hand, IEO are safer than ICO, because the token is guaranteed to be listed and exchanges analyze projects by themselves to be interesting for users.
However, there are no more differences between ICO and IEO. STO may be popular in future in such circumstances. Even a legal token sale doesn't make them less risky. Most exchanges are still not regulated and can't guarantee the safety of their customers' investments. Numerous hacker attacks are a problem on the way of cryptocurrency acceptance by society.
Investors want to work with safe and regulated sites. They also need an opportunity to diversify their portfolios. Cryptocurrency owners would like to invest in more stable financial instruments.
One of the most important options for crypto investors is to buy traditional assets (gold, oil, stocks, indices and so on), but it's possible only for fiat on most exchanges. So you have to change cryptocurrency to fiat on third-side exchange services and lose on commissions. An alternative to traditional instruments is tokenized assets, which have the properties of underlying asset. However, only a few platforms offer such services nowadays. And a little amount of them are regulated.
We're going to analyze, how Currency.com — the first regulated crypto exchange of tokenized assets in the CIS — works. Now it's the only regulated platform with the ability to trade crypto and fiat, where margin trading is available. Let's slow down and talk about Currency.com features one by one.
Currency.com is the first cryptocurrency exchange in the CIS, where you can trade various tokens, including tokenized Apple stocks assets, Dow Jones indices, gold and so on, not only for fiat, but also for cryptocurrency.
The platform is regulated in Belarus, where all aspects of the cryptocurrency industry are legalized. That's why a legal framework has been developed in the country from scratch. Belarusian legislation is fully consistent with the FATF recommendations and takes the best practices of KYC / AML procedures into consideration. At the same time, there is no tax on crypto operations for individuals in Belarus.
The exchange Currency.com had been available in beta from January to May, 2019. It came out in full release in June, and 12,000 accounts had already been created in July. The number of users is growing quickly. The platform supports English, Russian, Korean and Chinese, and this list will be expanded.
Servers are located on the territory of LD4 data center, which is protected by armed guards and equipped with a video surveillance system. LD4 services are used by many of the world leading trading platforms, including Dow Jones, Nasdaq, as well as London and Frankfurt exchanges.
Currency.com supports filtering by IP-addresses, two-factor authentication (2FA), API keys, deposit / withdrawal protection, according to the security standard of international PCI DSS payment systems. User data is stored and processed with the help of cryptographic algorithms (AES-GCM-256, etc.). Data encryption through PGP / GPG is used in operations with a cold wallet.
According to international standards, asset storage is distributed between a hot and a cold wallet:
A hot wallet
is an operational storage of 3-5% liquidity of a cryptoexchange to ensure intraday execution. It's fully encrypted. It can require the participation of several authorized people for operations (multisignature procedure). It allows customers to withdraw funds from the platform to the blockchain as quickly as possible.
A cold wallet
is a distributed hardware storage, where the main tokenized asset volumes are stored. This storage is disconnected from the Internet, and it needs the employee participation with hardware multisig keys for fund deposits / withdrawals.
All smart contracts, which issue tokenized assets and initiate a multisig procedure, have been audited according to international security standards.
The cryptocurrency exchange team created a mechanism for checking blockchain transactions together with the leading global RegTech companies, such as Coinfirm, Elliptic and Chainanalysis. If a personal wallet is used to operate on prohibited trading platforms, like Hydra or Hansa, this account will be blocked. It allows to protect user`s funds from hacker attacks, and it also provides trading opportunities at a market price.
Currency.com is planning to become fully decentralized by 2023, and the team is already working on it.
The main innovation of Currency.com is the opportunity to buy / sell traditional asset tokens for cryptocurrency and fiat. Currency.com creates and provides Exchangeable Tokens, Representing Currencies. These tokens work on the principle: 1 token = 1 unit of needed currency. If we take a rubles as an example, it will look like this: 1 RUB.cx = 1 RUB. Such tokens can be traded with tokenized traditional assets, as well as be exchanged among them. For example, RUB.cx to BYN.cx.
The platform can handle impressive 50 million operations per second, while Binance, Bitfinex, Bittrex and other leading cryptoexchanges handle about 1.4 million.
The API exchanges support all operations with Bitcoin and Ethereum blockchains. The rates of the token maximum and minimum prices (candles) for a certain period will be saved in the blockchain to provide a high level of transparency.
Tokens allow to:
- make operations with tokenized tools that are quoted in currencies different from the currencies of the tokens representing them (EUR.cx, USD.cx, BYN.cx). Such tokenized tools are, for example, public company shares listed on the Hong Kong Exchange and quoted exclusively in Hong Kong dollars;
- make transactions on the exchange of ETRC for ETRC and for tokens representing currencies. For example, the exchange of HKD.cx for AUD.cx, AUD.cx for EUR.cx. Such functions are also available for operations with leverage.
Currency.com team created two smart contracts.
1. Private Link, which issues new tokens, based on OpenZeppelin.
2. Based on Gnosis and designed for multi-user transactions from Private Link.
Both smart contracts passed the QSA certification security audit from Deiteriy Co. Ltd successfully.
Profit for an investor
Сurrency, the first regulated cryptocurrency exchange in the CIS, provided 1358 tools for its users in September, 2019. This number will increase to 10,000+ in the next couple of years. These are tokenized stocks, materials, exchange indexes, cryptocurrencies and many others. All markets are real tokens, issued on Ethereum blockchain. That's why they can be withdrawn and stored on the customers' personal Ethereum wallet.
Users are presented with a wide list of opportunities for trading on the cryptocurrency exchange.
It is possible to trade both with leverage and without it;
The direction of fiat / crypto and crypto / crypto;
Crypto assets with leverage up to 1:20;
Traditional tokenized assets with leverage up to 1: 100;
Tokenized assets, using any currency, and not just the one, where the basic asset is traded;
To add the most interesting trading pairs to Favorites for quick access;
To use professional tools to minimize trading risks: guaranteed stop loss, protection from negative balance, etc.
Unlike most cryptocurrency exchanges, Currency.com allows you to trade with USD, EUR, RUB and BYN fiat currencies, but not with stablecoins, such as USDT, USDS, PAX and so on. BTC, ETH and LTC are already available for trading. BCH, XRP and other assets will be added soon.
It's also important to understand that you pay commission only when you are making a deposit with a bank card. If you don't want to pay commission costs, use a bank transfer or transfer funds in cryptocurrency.
It's planned to connect SEPA and other popular local payment systems in the nearest future.
A professional set of orders is available for users:
Currency.com is profitable for a really wide range of traders as for the commissions while trading with leverage. For example, PrimeXBT has little taker and maker commissions, but the largest overnight fee on the market. The taker and maker commissions are higher on Currency.com, however, the overnight fee is much less. The same situation can be seen in relation to other commissions.
Users can trade Bitcoin and Ethereum with the tightest spreads available — BTC from 5 cent and ETH from 1 cent spreads.
You can also buy government bonds on the platform as traditional tokenized assets. So far, only the Ministry of Finance of the Republic of Belarus bonds are available. It's possible to buy both the whole and the part of the bond. A client, who has bought the whole asset, has the right to request its transfer to his account, which is called a 'depot', at any time. Interest annual payments on tokenized bonds make up to 7% for corporate bonds and 5% for government bonds. Interest payments are occured twice a year. The maximum spread on tokenized government bonds is 0.5%, the commission for trading is 0.05%. They can be sold for USD, EUR, RUB, BYN, BTC, ETH at any time.
Currency.com has a referral program, where users receive 50% of the first level referral commissions for 6 months. When registering with the referral link of another person, you can get a 10% discount on the commission fees of the platform for the same period. An affiliate program is available for legal entities.
The editorial opinion is the following: Currency.com
is worthy of the Neironix users' attention.
We would like to note some features of this crypto exchange:
• legality of operations;
• high level of security;
• about 1,400 tools for trading;
• patented technology;
• 50 million operations per second;
• two-factor authentication;
• cold storage of 97% of the funds;
• quick and easy deposit / withdrawal of funds with justified commissions;
• convenient and simple interface;
• ability to work from the desktop or with the application on iOS and Android, etc.
After testing the work of Currency.com and comparing it with many similar platforms, we recommend the platform to traders of any level.
We also agreed with the Currency.com
team on individual terms of exchange trading for our users, so that
everyone, who signs up via
this link, receives a 12%
discount on trading
commissions, instead of the
Happy trading :)
See you in the next article, where we are going to describe the registration process on Currency.com.
Denial of responsibility
The information, provided on this page, is quite common and doesn't include any financial
Neironix doesn't guarantee the information accuracy.
We're warning that investments in cryptocurrencies are high-risk and each investor is solely responsible for any losses.