There can be no denying that cryptocurrency and blockchain asset trading has become a significant industry in its own right. This became highly evident in late 2017, where in a remarkable move, global cryptocurrency daily trading volumes matched that of the New York Stock Exchange, with more than $50 billion worth of digital assets traded in a single day. Although these volumes have since reduced in size, both retail and institutional investors are still responsible for billions of dollars’ worth of cryptocurrency trading every day.
However, although we are soon approaching the first decade since Bitcoin was created, there is still virtually no connection between cryptocurrencies and real-world blue-chip stocks – until now.
An Estonian based organization known as DX Exchange are launching the world’s first exchange that will allow users to invest in popular stocks such as Facebook, Amazon and Apple, in exchange for leading cryptocurrencies such as Bitcoin and Ethereum.
Most importantly, these asset classes have no relationship with CFDs, which is crucial, because they provide investors with virtually no legal rights to the underlying investment. On the contrary, by using the DX platform, users will own the corporate shares they invest in, without needing to go through a third party broker. Here’s why the exchange could be the next big thing.
Fully regulated in the European Union
The days of cryptocurrency exchange platforms operating in an unregulated manner are over. Global governments and international partners are either in the process of enacting legislation related to blockchain assets, or in the case of nations such as Malta, Singapore and Japan, amongst others – regulation already exists.
This is highly pertinent, as for the cryptocurrency space to gain wide-spread adoption, it must fend off its tag as a modern version of the Wild West. Recognizing the need to do everything by the book, the team at DX have received full regulatory approval from the EFIU, meaning that they are able to offer their trading services to more than 500 million users. Further regulatory collaborations are also on the cards, to include other regions.
On top of getting the green light from European regulators, the DX platform have also formed a notable partnership with NASDAQ. The U.S. based exchange will be supporting the DX platform with its industry leading NASDAQ Matching Engine, which provides the underlying technology for high-frequency trading, as well as a safeguard against manipulation.
The partnership is not only notable because of NASDAQ’s long-standing reputation in the financial services industry, but also because the exchange have expressed ongoing interest in crypto-related assets. For example, NASDAQ are set to launch its own Bitcoin futures market in the New Year, along with a range of other potential projects linked to the digital phenomenon.
A fee structure that ensures retail traders are not penalized for lower quantities
Whilst institutional involvement in the cryptocurrency industry will be highly beneficial in the long-run, it is important to remember that the vast majority of trading is initiated by the retail investor segment. As a result, the DX platform aims to offer a highly lucrative fee-structure that ensures low-level traders are not penalized for small volumes.
On the contrary, traditional third party brokers often charge extortionate fees to purchase blue-chip stocks, which are usually in the form of a percentage of the total share purchase, a fixed-fee, or a combination of the two. This can also apply when the trader attempts to offload their shares.
At the other end of the spectrum, the DX platform is offering a simple monthly subscription service of just 10 Euros, which allows users to perform unlimited free trades up to 50,000 Euros. Once this amount is triggered, additional trading fees will apply. This makes the platform ideal for those that only want to trade smaller amount.
Tokenization that represents legal ownership of blue-chip stocks
We mentioned earlier that a common method for low-level traders to access leading stocks and shares is to engage in CFD trading. Whilst this particular asset class does allow traders to get a piece of the blue-chip space, it is important to note that the trader has no legal right to the underlying asset. Instead, they are simply speculating on the future value of the asset.
This is where the DX platform stands out. In a partnership with MPS Marketplace Securities Ltd, who themselves are regulated in the E.U jurisdiction of Cyprus, DX customers will be able to purchase real-world stocks such as Intel, Facebook and Apple, with the purchase resulting in actual ownership of the asset. The innovative concept to the DX structure is that each purchase is represented in the form of a digital ERC-20 token.
For example, if you purchased $500 worth of Apple stocks, they would be replicated on a 1:1 basis as a digital token that is stored on the Ethereum blockchain – not only guaranteeing security, but ensuring that ownership is transparently represented on the blockchain ledger. At this stage, the purchaser, and only the purchaser, has control over the tokens. This also makes it an easy and seamless process should the owner want to sell or trade the blue-chip stocks, all in a fee-free platform up to the 50,000 Euro threshold.
Ultimately, buying, selling and trading leading blue-chip stocks has never been easier. Added in with the fact that trading costs just 10 Euros a month, and the digital tokens represent real-world ownership in a transparent environment, 2019 could be a very interesting year for the team at DX.
Vid App Lets Users and Influencers Monetize Personal Videos
We’re visual creatures. That’s why we’re captivated by films and shows that have great storytelling. According to reports from Insivia and Cisco, mobile video consumption doubles every year, and by 2021, videos will comprise 82% of internet traffic.
One venture believes it’s possible to make money from our personal video collection through tokenized rewards.
According to Jag Singh, CEO, and co-founder of the Los Angeles, California, based startup:
“Vid is a social app that empowers users to create beautiful videos, control their data, and monetize their memories. We use artificial intelligence [AI] to generate memories from a user’s video feed. These are then organized into an interactive calendar. The resulting video journal can be edited with a patented editing tool before users publish their captured memory.”
Privacy and Protecting Data
Publishing personal journals on public platforms is tricky. But Singh says Vid places a premium on privacy.
“We use zero-knowledge encryption as well as blockchain tech to give users complete control of their data. It also gives them opportunities to monetize their videos with brands—without interference from us or anyone else.”
Bad data practices [e.g. Experian hack] and harvesting user data without consent [e.g. Facebook] have led to regulatory actions such as GDPR [“General Data Protection Regulation”]. Vid’s solution is to encrypt data and let people select what data to make available. Moreover, the app lets users connect directly with brands that might be interested in their video journals or creative talent.
“Users who opt-in to generate video memories in conjunction with an advertiser will receive 100% of the advertising revenue,” whose app can be found at. “No cut is taken by Vid or any third-party ad marketplace.”
So what are the implications of a 24/7 connected world?
People now view one billion hours of YouTube videos each day. There are several large platforms that are capitalizing on viewing trends. With this massive shift, influencers and brands have much to gain: Audiences retain 95% of a message when delivered in video format compared to just 10% when reading in the text, according to Insivia.
Opportunity for Users and Influencers
Vid’s CEO launched the venture in December 2016. He says the app is a unique opportunity to offer a superior, privacy-protected social experience to a massive crowd.
According to Singh:
“We launched a test version in early 2018 and added more than 30,000 users within a month. We were trending up the social media application rankings before taking the app offline again for further development. No marketing dollars were spent on the test launch. It was purely organic.”
The firm has boarded more than 50 top Influencers across social channels to support the app’s public release. The Influencers have more than 250 million followers, and they know they can increase their revenue from brands by using Vid. The app has a swipe-up ad model where ad revenue flows directly to the Influencers.
The app’s target audience is younger generations [Millennials and Generation Z] since they prefer short-form video content.
“We poured more than $1.5 million of our own funds into product development and have been working on the platform since the end of 2016, we have filed seven patents for the technology underpinning our platform.”
The team consists of Jag and Josh Singh, and now includes computer scientists, engineers, financial experts, marketers, and business development professionals. Maciej Dziedziela, another co-founder, is Chief Technology Officer. He has a background working in major enterprise firms.
Before Vid, Jag and Josh launched and exited a company that grew to nearly $30 million in annual revenue over four years.
Singh also detailed about:
“Contrary to the pump-and-dump ICO and IEO models of most cryptocurrency and blockchain platforms, we have opted for a five-year rollout of the Vid native token. The details of our tokenomics can be found in our whitepaper, which is accessible from our main website.”
The Vid token pre-sale is scheduled for launch on June 14, 2019, and will conclude on August 9. There is no soft cap, and the presale hard cap is $60 million. There will be no airdrops. Smart contracts are audited by Certik.
For further details contact here.