Bancor, which recently raised about $150 million to enable continuously liquid cryptocurrencies, announced today that the invest.com Group will use its protocol to launch Stox, a prediction market platform. The Group is well known in the online industry for its CySEC-regulated brokerage subsidiary.
Stox will deploy its smart token STX using the Bancor protocol to guarantee liquidity on Ethereum, while holding BNT (Bancor’s native cryptocurrency) as its reserve.
Users of Stox’s prediction market platform can purchase STX directly with the BNT smart token using ETH, as well as liquidate STX back to Ethereum, with low slippage and no spread.
“We are excited to collaborate with Stox and support their effort to become a pioneer member in the Bancor network. We believe that the guaranteed liquidity and the stability of STX will benefit token holders, the Stox project at large and provide a strong case study for the Bancor protocol,” said Eyal Hertzog, Chief of Product, Bancor.
Stox is meant to offer a peer-to-peer trading experience. The developers say that the platform is based on blockchain technology, crowdsourced information, and runs using an algorithm that assesses what the crowd thinks about a specific event. The platform is also dynamic, meaning prediction patterns and assessments change based on events occurring daily.
“Stox is a transformative step in our journey, as it allows us to combine the power of blockchain with the array of infrastructure, technical, sales and marketing assets that are currently powering invest.com,” said Ophir Gertner, founder of The invest.com Group.
The example they give to show the diversity of the options is taken from the popular series Game of Thrones: the platform could show that 80% of users believe that Jon Snow will become King of the Seven Kingdoms. But, if Jon Snow is killed off again, the crowd could change their mind. If now only 10% of users think Snow will be king, then the platform will adjust the expected result based on that changing opinion through the price of that prediction.