After earlier this year Finance Magnate broke the news about a new project from ThinkMarkets, today the company officially announced the launch of its multi-asset blockchain-based exchange, TradeConnect.
The firm aims to deliver to market a peer-to-peer platform that matches makers and takers of liquidity across various market asset classes. The participants will be able to trade FX, commodities, precious metals, equities, and cryptocurrencies.
The company started working on an AI-based personification for different users, making matching on the network with the right participant quick and efficient. The aim of the product is to cut trading costs by using blockchain technology for transparency and cut the settlement time.
Hardcap at $50 million
The company is preparing an alpha for April 2018 aiming to raise $50 million. The CEO of ThinkCoin, Nauman Anees, agreed to provide some more details about the project.
How do you plan to secure enough liquidity for trading on the peer-to-peer network?
As with any peer to peer network and market, it will require a certain pool of market participants to create enough liquidity and momentum for bid/offers to match at the mid-market price specified from the Oracle price feeds per the whitepaper. Prior to the exchange launching, we will secure a key pool of market makers and liquidity providers from the crypto and CFD space that will want to serve as initial participants along with ThinkMarkets.
As the pool of bid/offers increase and more peer to peer trades are matched along with auctions of the digital personas we expect a significant increase in trades matched by a diverse pool of participants versus the initial set of market makers. This will be clearly visible in the post-trade blockchain ledger where the “internal transactions” are committed to the private ledger prior to being set to the public ledger will be clearly visible.
How do you plan to support the token’s value after the ICO, and have you already planned its listing on exchanges?
The token economy we have created is scalable, has valid use cases and we expect the actual use of the token in context of the white paper that is published with a significant user base to support the token’s value and demand for it.
After the ICO one of the primary reasons apart from the actual user portfolio we have is that we expect to have a production version ready per the roadmap. Unlike many other ICOs who do not have their own trading systems and backend, we are already many months ahead in this development by leveraging our mobile platform and team in Bulgaria.
We expect to list on the exchange in May of 2018, unlike many other ICOs who list on many exchanges we are partnering with two or three larger more well-known exchanges that can support our user base and liquidity needs.
Will clients using ThinkConnect be subject to regulatory protection/requirements?
TradeConnect will be under the same umbrella of companies under our parent group in Australia once the token is on the exchange. Users in trade connect will be subject to the same oversight, compliance and regulatory process as our current user base under ThinkMarkets to trade.
How do you intend to attract qualified margin lenders and what will be the criteria for selection?
We intend to waive all network fees for trades that are classified as margin trades until there is a healthy distribution of peer to peer trades from retail participants on the network, our goal is to have over 50% of the daily volume matched by peer to peer trading before enabling charges for the margin lenders.
Can every user be a market maker/taker?
Yes, each user can be a maker or taker in any trading day. For example, a single trade can be filled by multiple participants who can be makers and also a taker on other transactions.