Cryptocurrencies are considered a very distinct asset class. The immense ease that blockchain technology has given in launching tokens has meant that there are numerous coins and tokens in the market. Current exchanges list only a fraction of the tokens available in the market. Of those listed, trading pairs mean even further low interactions.
With the current tokenization rate, exchanges will be forced to have hundreds, if not thousands of trading pairs. Liquidity, especially for institutional investors who are looking into the derivative market, will be an issue.
LXDX is a digital asset exchange that primarily focuses its services on cryptocurrency and digital assets derivatives. The exchange allows for speculative and hedge trading on cryptos with very little entry and trading costs when compared to traditional and other digital exchanges. It has looked at the top digital exchanges in the world and pointed out some major issues that these exchanges usually fail to address:
- Liquidity: Even with a high number of trading pairs or products, liquidity is a major factor that players and investors see in a exchange. If an investor or trader knows that he or she cannot liquidate their asset and pull out of the market with ease, they would never invest in the product or the exchange.
- Reliability: With all trades happening virtually and no shut down time for the market, digital exchanges are prone to down times and technical issues. Even traditional exchanges are more reliable when compared to their decentralized asset ones. One major reason LXDX identifies is that in digital exchanges, engineers and programmers are usually not from exchange backgrounds and have not worked with such critical systems.
- Security: With every single aspect of digital exchanges online, right down to their APIs, security is the greatest biggest threat they face. Even the smallest of vulnerability can lead to thousands of tokens being stolen.
- Surveillance: Most exchanges do not oversee market manipulations, such as dumping, flipping and other activities. These can seriously harm the repute of the platform and eventually hurt the traders, who might lose millions.
What LXDX Does
LXDX, as a crypto derivative trading platform, caters for the above-mentioned issues to ensure that traders get the best of experience by:
- Increased Liquidity: By attacking the liquidity challenge from multiple fronts, LXDX increases liquidity for traders by many folds. It employes tactics such as decreased latency, developing active relationships with high volume traders, efficient contract designs and many others.
- Redundancies and Tests: To increase the reliability factor, LXDX not only uses cloud services to ensure always online concept, but utilizes modular hardware design for its platform in which each part is strictly tested to withstand the vigorous stresses of trading volumes.
- Security: LXDX has used external, third party security audit companies to test and ensure its platform is fool proof. Furthermore, it also has two teams, red and blue, which constantly do attack and defend practices on the platform’s coding to find vulnerabilities and close them.
- Real Time Market Surveillance: The platform keeps a constant eye on all trades happening, looking out for suspicious activities and putting a stop to them. All trades are further scrutinized at the end of the day to make sure nothing evades detection.
Signing Up on LXDX
LXDX has opened its doors for traders to start signing up on the platform. With the launch within a month, it gives traders the opportunity to register and follow up on the AML and KYC checks so that they are cleared to take advantage of the platform’s services when it comes online.
“Crypto needs trading venues that give traders the option to both speculate on volatility, and also hedge against price movements in the opposite direction,” Joshua Greenwald, CEO of LXDX said, “We’ve seen recently a large downside devaluation that the majority of investors have had no way to protect themselves from. The addition of derivative products will surely make our crypto markets healthier. We’re excited to be opening our doors to traders on the LXDX platform for account creation and early access.”
Stephen Thomas, the CTO, is very confident on the platform and its security systems, “We built LXDX from the ground up in highly optimized C++ on proprietary hardware configurations that allow for system execution latencies orders of magnitude faster than what’s out there today. Our asset storage solutions use combinations of cold and hot wallets protected by multi-layer security frameworks and protocols”
The LXDX platform is one of the few digital exchanges that is launching a digitized security through its Security Token Offering. The tokens are ERC 20 compatible and are fully compliant with Malta regulations.
The LXDX tokens will be available at a rate of 1 LDXD for 1 Euro and will have a market cap of 5 million Euros. The tokens are a type of restrictive smart contracts that are designed to be compliant with secondary market trading.