In less than a week Tokenbox will introduce a unique solution for the cryptomarket: an ecosystem perfectly uniting funds, traders and investors. Why is it safe, why would one trust a system like that, and what are its main features?
As for the crypto-funds, they keep popping up on the market. We honestly think, that the world needs more of these, since they benefit the entire market. There is of course the issue of legality: it's hard to legalize them completely. We're planning to solve this problem within Tokenbox by registering an umbrella fund, that would sublicense to other funds and individual traders.
There is, however, an issue of trust and individual security in the whole system. Our approach is aimed to solve it. Unlike eToro platform, where anyone can start a fund or become a trader, the Tokenbox team will ensure that those traders and funds who would like to get in, will have to pass a KYC verification. These procedures will include uploading IDs and various database checks. We are also in agreement with a number of KYC providers that can perform such checks.
Now, on the tech side of things. It's obvious that terminals like MetaTrader, which are used in classic trading, aren't suitable for crypto-trading. Thus, we have our very own trading terminal, that is currently under development in partnership with Tradingview.
Trading terminal will be developed according to the needs of various market participants - fund managers and traders.
It will give a gateway into the global digital currency economy and hundreds of currencies on leading exchanges from a single account. Also - access more than 75 technical indicators and trade directly from the chart on all favorite exchanges.
Tokenbox plans to develop price trigger alerts with SMS, E-Mail & In-Browser as well.
Portfolio managers will get an opportunity to re-balance portfolios in accordance with the parameters set beforehand, by making transactions with a few assets. This will cut labor costs. Also, the software will allow automatic reports generation for portfolios via messengers (using bots), etc.
Further development of the trading terminal capabilities also involves connecting accounts with third-party services that help traders.
There's also the issue of liquidity. Crypto exchanges set rather tight input/output limits, even after KYC checks - can be as low as $25,000. When we're talking about large players that want to be in the business, this amount is laughably tiny, and this is a real problem that we are set to solve.
The Tokenbox platform traders will be able to use corporate accounts, which have an increased limit of operations.
Liquidity aggregator will allow the funds to make deals on several market exchanges simultaneously, getting access to a bigger amount of liquidity through a single interface.
The platform’s inner liquidity will provide a high speed of dealing without necessarily inputing or withdrawing assets to at external exchange market. Thus the transaction expenses go low. There’s also lower risk of impact of glitches and delays in blockchain nets work during transactions.
Of course, there's a global issue of fiat money input and banking transactions within the economy. We're planning to solve that, too.
As for the tokenization, we have tokenized our funds, the way it already works at The Token Fund.
Each fund will be able to create its own token which will be an equivalent of a share in the fund. The process of issuing and redeeming tokens is fully built on Ethereum smart-contracts.
What are the advantages of tokenized funds? They can be open, close, corporate or private, with any management strategy. The fund can invest in any tokenized assets. The rights to investors’ shares are certified in the form of fund tokens. Receipt of investors' funds, issue of tokens and reverse process of payment of funds, the fund commission - everything is fully automated. Payment processing is connected with the fund's smart contract. The value of assets that are stored on fund accounts, exchange accounts, including funds reserved for execution of orders, is also calculated automatically.
These are certain things that already exist and that can be successfully transfered to the cryptomarket. What we need to work on is the legal functionality, like creating entities that will enable issuing sub-licenses to traders and funds that want to use the platform, this is what people's been asking quite a lot for. And in the end, tarting up the UI of it all. We’re aimed to become a cross-platform solution that works on all operating systems and all phones.
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