“ Individually, we are one drop. Together, we are an ocean.”-Ryunosuke Satoro, Japanese Poet
The markets may be in red but the crypto community continues to grow every day. Given the young age of the cryptocurrency markets, there is a long road ahead for markets to mature as well as grow in size. With that in mind, it becomes pertinent that markets do not fall prey to a ‘us vs. them’ mentality when it comes to expanding user base, and accepting that traditional traders and institutional investors can be nudged to trade cryptocurrencies, provided they are accommodated in the right way.
The traders of the traditional global market are yet to fully embrace cryptocurrencies as an investment instrument and a contributing factor towards this is the lack of choices current exchanges offer, in terms of both product offerings and platform functionality. I have talked about interfaces and simulated trading environments in my last two posts and how our trading ecosystem is addressing the issues around these two aspects. In this post, I would like to talk about how a derivatives marketplace with easy accessibility for large trading firms can help attract more traders and expand the participation pool.
Indirect exposure to cryptocurrencies via derivative instruments like Futures, spreads and butterflies can serve as a great starting point for traditional investors. On a consolidated marketplace for crypto-based derivatives, traders who have dealt with these types of financial instruments for decades can trade with the comfort of familiar territory and lower risk as opposed to direct buying and selling of coins/tokens. In case of Proprietary Trading Firms, who employ several hundred professional traders under their umbrella, a Master Account System will prove to be very fruitful. A master account enables the creation of ‘trade-only’ sub-accounts that cannot be used to make deposits or withdrawals. Thus, at the helm is the master account under control of the firm as they can decide when to enter or exit the market, while sub-accounts trade freely to reap in the profits. More so, by enabling collection of trading fees from the sub-accounts, new crypto trading firms can be encouraged, further cementing the entry of more players into the trading landscape.
The introduction of a Master Account System on the idap.io trading platform will enable us to foster partnerships with trading firms looking to enter crypto trading while also providing entrepreneurs with an opportunity to establish new trading firms, furthering adoption and overall market growth.
The pre-sale for IDAP tokens is live now and ICO contributors can get tokens at 25% bonus. To fuel the steady growth of the token demand, we have taken many steps to maintain the circulating supply. ICO contributors are incentivised to hold on to their tokens in order to avail lucrative discounts on trading fees on the platform once it goes live. Contributors with 20,000 tokens or more will not have to any trading fees for their entire lifetime. Those who buy 1.25 million tokens or more can avail the Master Account for free. Moreover, any trading fees paid in IDAP token will get a 50% discount. This way, a good percentage of tokens will be blocked. Moreover, we will be regularly burning 20% of all tokens received as various kinds of fees until we reach the supply of 500 million tokens.
By following a reference price model, the minimum reference price for the IDAP token upon its listing will become 1.5 times its current value, i.e. 4.5 cents from 3 cents, ensuring that when trading fees are calculated using this reference price, ICO contributors bear no loss in the case the spot price falls below 4.5 cents. In the light of all these factors, there is a good potential for the token price to grow with time.
Considering that the idap.io exchange is tailored for traders, the pre-sale is a great time to become an early adopter of the project and contribute to the development of the platform if you are looking to trade on the platform upon launch. We are trying to make this platform as accessible and inclusive as we can and hope that the live exchange will see a diverse user base, with old-school traders feeling right at home with the idap.io trading ecosystem.