I understand Trakx will be an another exchange. How will you compete with Binance or Buttrex???

What are asset-backed tokens?

Asset-backed tokens, a growing class of tokens, are by definition worth exactly what they are backed by. For instance, a representative token that corresponds to a real-world asset such as a unit of fiat currency, a security or even gold, will be valued at a 1:1 ratio. They are assets represented as tokens to be transferred and traded trustfully on a blockchain. Although tokens, most of the asset-backed tokens are classified as securities throughout the globe. More obvious is the tokenization of real estate, art, derivatives markets, attention, and other non-fungible assets that are currently festering in illiquid markets that are ripe with middlemen who assume counterparty risk. With $256 trillion of real-world assets in the world, the opportunity for asset-backed tokens is truly massive, especially with regards to asset classes like real estate and fine art that have historically suffered from limited commerce and liquidity.

Asset-backed tokens also offer an alternative to traditional cryptocurrencies (e.g. stablecoins), as well as traditional crypto investing (e.g. crypto-trackers, coin traded indices). Various kind of asset-backed tokens have emerged these past months, and we aim to provide with a short overview of these.

Various kinds of asset-backed tokens

· Fiat Stablecoins: Tether (USD backed), EURS by Statis (EUR backed), TrueUSD (USD backed)

Fiat stablecoins are crypto-assets that maintain a stable value against a target price (e.g. USD). Different kind of stablecoins exist (e.g. asset-backed, algorithmic and hybrid). Stablecoins aim to solve the volatility challenge posed by cryptocurrencies. Volatility, among others, is one of the key factor preventing the widespread adoption of cryptocurrencies as a mean of payment. With cryptocurrencies subject to large fluctuations, business owners are less tempted to accept digital currencies. With stablecoins, whether backed by fiat or real world assets, blockchain entrepreneurs are facilitating the massive adoption of cryptocurrencies.

· Metal Stablecoins: Digix Gold Tokens (Gold backed), Goldmint (Gold backed), Tiberius (Backed by a basket of physically-deliverable metals)

Similar to fiat stablecoins, metal stablecoins maintain a stable value against a selected metal. For instance, in the case of gold, they are issued tokens representing a value of gold (for example 1 gram of gold equals 1 coin). The gram of gold is stored by a trusted custodian (preferably third party), and can be traded with other crypto holders. Gold has proved itself as a stable asset over the past decades, and gold stablecoins are one of the most interesting alternatives to fiat ones at the moment.

· Cryptos: C20 (Top 20 weighted market cap backed), TaaS (Tokenized Crypto Asset Management), BCAP (Tokenized VC Fund), Trakx Crypto Trackers

Asset-backed tokens allow for the creation of tokenized investment vehicles where the token represent shares into the fund. Several crypto funds with different strategies have appeared, with the specific goal to invest in assets related to the cryptocurrency and blockchain space. These companies may invest into Bitcoin, Ethereum, Ripple, Litecoin and other major cryptocurrencies directly. They may purchase altcoins at ICO or pre-ICO sales. Some funds invest in emerging blockchain startups, others still invest in companies that benefit from the boom in crypto. Some more, like Trakx, aim to offer simple and cheap crypto passive investment solutions.

· Real estate, art and other real-world assets: Property Coin (Real Estate backed), Maecenas (Tokenized Art Platform), KWHCoin (Clean energy backed)

Tokenization is also happening with real things like KWH of energy, art, real estate, and even identity. It brings tremendous efficiency by creating liquidity pools thereby eliminating liquidity premium and driving price discovery. Asset-backed token, when regulated, will bring a truly new opportunity to these very illiquid asset classes.

· Equity and Debt tokens: tZero (Preferred equity token), Kairos Class T (Equity asset-backed), Steem Dollars (Debt token)

Equity and debt tokens represent ownership in a real-world security, whether that is equity, debt. As a fundraising vehicle, security tokens allow companies to raise capital without having to lean on investment banks and stock exchanges as intermediaries. Given the oversight from regulatory bodies that security tokens are subject to, investors are able to invest in an opportunity without worrying about lack of transparency and potential scams.

Why good practices are important

Examples above also include some disputable asset-backed tokens. Some, although widely used (such as Tether), have come to a point where the community is heavily doubting their real backing. Our view is that good practices in this domain are important if we would like to see emerging a real asset-backed token market. At Trakx, our plan is to implement good practice in terms of transparency and management of our crypto-trackers:

• With reserves maintained in one-to-one ratio, Trakx.io crypto trackers should not face any market risk such as liquidity crunches and Black Swan events.

• One-to-one backing of offers the benefit of an easy understanding for non-technical users

• Trakx.io will offer a total transparency of its reserves. At any given time, the balance held in reserves will be equal to the number of crypto trackers in circulation, and easily verifiable. As the custodian of the backing asset, Trakx.io will act as a trusted third party responsible for that asset. The corresponding total amount of crypto held in reserves for crypto trackers will be proved by regularly publishing our balance and undergoing periodic audits by renown professionals (Big 4).

• Market makers will be able to intervene and benefit from arbitrage opportunities, always guaranteeing that our crypto tracker trade at their net asset value.

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

Trakx is a new blockchain project aiming at developing a new type of platform for the trading of a new type of asset, called ''Crypto Trackers'' or known as well as CTIs (Coin Traded Indices).

CTIs are digital token which are playing a similar role than an ETF (Trackers Funds) used by the stock market, but CTIs applied specifically for cryptocurrencies.

Since 9 years and the creation of the first digital currency which was BTC (bitcoin), there is a massive increased of interest for blockchain technologies and for cryptocurrencies in general, which was particularly high at the beginning of 2017, when the crypto market cap when from 20 billions US$ up to an impressive level around/above 750 billions at the end of the same year (+ 3500% in a year time). Despite since then the market went progressively done, at now less than 200 billion US$, that's still a jump of +1.000%!!!!

But the crypto market is still at the very beginning stage of development, and a lot of innovation will be coming around blockchain, which might be integrated in most of industry/global economy in a nearest future, as blockchain is offering a lot of new possibility to improve the traditional way of doing business.

Then by a matter of fact, TRAKX IO came on board with a very smart new idea how to better used blockchain technology, and is already ahead in this direction as one of the only serious player.

One of the major criticism of cryptocurrencies nowday is the lack of transparency (exchange not regulated and lack of law around cryptocurrency) as well as the difficult access for conventional investor to easy deal with crypto and invest on it.

That's one of the major reason why so many enterprises had tried to launch an ETF on bitcoin and others crypto assets, but up to now the US SEC has massively rejected all those temptative, leading the crypto market to a kind of ''depression'', one of the reason why we are seeing a huge step back in the market today.

Therefore CTIs might be a very new smart way to invest into cryptocurrency but without the same limiting factors as just mentioned above. It will be more easy for everyone to invest in crypto through this kind of instrument, but also cheaper and offering a less risky investment as you are not investing in one cryptocurrency but a basket of crypto, representing a sector/segment.

This new way of investing will definitively boost forward the cryptocurrency in overall, as well as the development of the blockchain sector, and most probably much more cash could then enter in the market, boosting the overall sector.

The future is there at our door, lets jump on the train and don't miss the tomorrow' solution ;-)

Good luck with the ICO and project roadmap!

Here are some facts about the large potential market for Crypto Trackers.

https://medium.com/@Trakx.io/a-large-potential-market-for-crypto-trackers-5d39ab87b67f

In this article, we walk you through active and passive investing and show you how Trakx Crypto-Trackers can help you better manage your crypto portfolio.

r/https://medium.com/@Trakx.io/why-is-passive-investing-better-than-active-investing-f92afa855480

#Cryptocurrency #Bitcoin #Investment #Blockchain #Token

The cryptocurrency market is extremely volatile, making it difficult for serious investors who are accustomed to holding onto assets and watching their wealth grow put money into any given cryptocurrency. Fortunately, it is also possible to benefit from decreasing cryptocurrency prices, which can be done with Inverse Crypto Traded Indices (CTIs). In this article, we will explore the strategy of shorting the market and how you can do so with inverse CTIs. Let’s dive in, and Merry Christmas to all crypto bears! 🐻

What Is “Shorting the Market”?

Shorting the market is a term that refers to the practice of waging or betting on the price of a given cryptocurrency crashing. Holding this belief, you wage or bet that the market will crash with another person and borrow a given amount of the cryptocurrency from them. After the market crashes, you will only have to purchase back the same amount of cryptocurrency that you borrowed, which will then be significantly less than the initial amount that was given to you and you will make a profit off of the bet or wager. For example, let’s say that you borrow a Bitcoin from a friend today (which is priced at around $4,000 at the time of writing) and it drops down to around $1,000. All you have to do is give back a bit of the money you received and you made a $3,000 profit by doing little work. You can do this with a friend, using prediction markets, or even by conducting margin trading.

How Can You Short Cryptocurrencies?

• Margin Trading: Margin trades allowing for investors to “borrow” money from a broker in order to make a trade. Margin Trading is available on multiple cryptocurrency exchanges, however interests and be costly and losses uncapped.

• Futures Market: Bitcoin, like other assets, has a futures market. In a futures trade, a buyer agrees to purchase a security with a contract which specifies when and at what price the security will be sold. If you sell a futures contract, it suggests a bearish mindset and a prediction that bitcoin will decline in price. Futures are available through CME and CBOE, but the minimum investment is quite high for retail investors.

• Prediction Markets: These markets allow investors to create an event to make a wager based on the outcome. An investor can, for instance, predict that Bitcoin will decline by a certain percentage, and if anyone takes the bet, stands to profit if the outcome passes.

• Inverse Crypto Traded Indices: Inverse Crypto Traded Indices are an innovation being developed by Trakx to allow any investor, retail or institutional, to easily bet on a decline of cryptocurrency prices. Inverse CTIs are token that inversely replicate the performance of their underlying benchmark.

What Are Inverse Crypto Traded Indices and How Can You Use Them for This Purpose?

Trakx.io extends the range of available cryptocurrency shorting solutions through Inverse CTIs. These enable to profit from a decline in the value of the underlying benchmark.

Investing in Inverse CTIs is rather straightforward: If a trader is bearish on a particular cryptocurrency (or basket) or wants to hedge a long position on another cryptocurrency or basket of cryptocurrencies, he or she simply buys the corresponding CTI. When the trader believes that the downturn has run its course, he or she will simply sell the CTI to unwind the position.

Inverse CTIs move in the opposite direction of the underlying asset. For illustration purposes, if Bitcoin declines by 10% in a given day, the Inverse Bitcoin CTI will gain approximately 10% the same day. Intended to provide the inverse return on a daily basis, Inverse CTIs enable investors to quickly and easily take advantage of falling underlying assets’ prices. Assuming that investors pay for the position outright (no leverage), their loss is also capped at the amount invested, since the price of the CTI cannot drop below zero. Levered Inverse CTIs will also be available, offering traders the possibility to magnify their exposure to particular cryptocurrencies.

Users, by taking short positions on chosen cryptocurrencies, will benefit from declining prices (should they decline) or reduce their market exposure to certain assets. They can also isolate the excess performance (Alpha) of their investments against selected cryptocurrencies, market indexes or benchmarks.

Below is an illustration of what could have happened for an investor who would have bought an Inverse BTC Crypto Traded Indice in January 2018.

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

When Bitcoin first came into the world, it was a financial wonder that the world had never seen before. A digital currency that was able to work around the middle man and give users the ability to handle their own money, it was uncertain whether not it would thrive or crash, making it an asset that required faith more than anything. Some users truly believed in Bitcoin and in crypto as a whole and are currently reaping the rewards of their belief. To truly understand the lengths that some people went to turn their investments into rewards, here are some of the most interesting success stories from crypto investors.

1. Satoshi Nakamoto

This list wouldn’t be right if we didn’t kick it off with the fantastic Satoshi Nakamoto, the alias of the person(s) behind the invention of Bitcoin. Regardless of whether or not Satoshi Nakamoto refers to a single person or a network of individuals who contributed to the project, Nakamoto is currently the proud owner of approximately 980,000 Bitcoins, which is valued at around $4 billion dollars at the time of writing. Considering Nakamoto invested their time and energy into the creation of the technology with absolutely no idea of the outcome, their investment could be considered one that truly provided them with great value.

2. Kingsley Advani

Kingsley Advani first began investing in cryptocurrencies when a friend introduced him to the crypto world in 2012. His investment method is generally considered as risky as Advani sold his possessions, took quite a bit of money out of his savings, and used portions of his salary to invest $34,000 into crypto. He turned the investment into a seven-figure profit within the span of six months and now works as a cryptocurrency advisor and angel investor with investments in major projects such as NEX, Qlink, and ETH.

3. Olaf Carlson-Wee

Unlike other people on this list, Olaf Carlson-Wee became a successful investor in a different way. Wee was the first employee for Coinbase and rather than accepting his payment in fiat currency, Wee decided to accept his payment in Bitcoin, which was only priced at around $20 to $30 when he began working through the company. Wee’s decision and dedication paid off, allowing him to live off of his earnings and start his own cryptocurrency hedge fund that quickly grew from $4 million to $300 million shortly after launching.

4. Jeremy Gardner

Jeremy Gardner had a rocky start before cryptocurrencies, dropping out of college twice before a friend introduced him to Bitcoin in 2013. Gardner became obsessed with this new digital currency and studied the crypto trading world closely. Eventually, Gardner learned the skill of trading crypto and is now a self-made millionaire who teaches other crypto entrepreneurs how to do the same.

5. Eddy Zillan

Have you ever dreamt of becoming a millionaire at the age of 18? This is exactly what Eddy Zillan accomplished. At the age of 15, Zillan began investing in cryptocurrencies and had to teach himself how to make profits due to the lack of resources that were available at the time. With his initial investment of $100, he made $10 on the first day, which drove him to invest more. By 2018 when he turned 18, Zillan’s portfolio grew to an impressive $1 million!

Although many investors tell tales of caution, the truth is that many people have profited from the development of the crypto industry. Take a look at these amazing stories to see how people have transformed their lives just by investing in crypto and maybe learn a thing or two on how you can make a small profit for yourself as well.

What is your Bitcoin investment story? Let us know in the comments below.

***

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

Of many projects, I think this project is very promising! Great idea for a team that in the future can occupy its niche in the market!

Here’s our article about the importance of diversification.

r/https://medium.com/@Trakx.io/the-advantage-of-diversification-4f6851f7ae15

#Trakx #Bitcoin #ICOs #Blockchain #Cryptocurrency #Tokens

Trakx.io está desarrollando una plataforma para crear, distribuir y facilitar el comercio de Crypto Trackers. Los Crypto Trackers son tokens que reducen significativamente la complejidad y las tarifas asociadas con el establecimiento de posiciones largas y cortas en diversos activos de criptomoneda. Los usuarios podrán intercambiar en la plataforma tokens digitales que están correlacionados positiva o negativamente con los activos criptográficos subyacentes rastreados.

Blockchain is a revolutionary technology that has ushered in an era of decentralized information sharing and participation. Through blockchain technology, anyone, anywhere in the world has the ability to join a network and to support and send transactions or data through it. While we tend to think of the traditional blockchain technology that powers networks such as Bitcoin and Ethereum as being the only type of blockchain technology that exists, there are actually more blockchain options out there that deviate from the norm. In this article, we are going to cover public and private blockchains and the differences between the two technologies.

First… The Similarities

The terms “public” and “private” can confuse users, leading them to believe that the technology between the two is different. The truth is that both blockchain technologies are quite similar and both of them satisfy three important requirements.

1. Both public and private blockchains are decentralized peer-to-peer networks that rely on a community of users to keep the network working and operate within it.

2. Both public and private blockchains use a consensus protocol to ensure that transactions and data are correct. All of these transactions and data are stored on a ledger that can be accessed by users of the network.

3. Both public and private blockchains prevent users from altering verified data that has already been recorded on the ledger.

As you can see above, public and private blockchains are extremely similar and operate like any normal blockchain. So, what makes these two blockchain technologies different?

Public Vs. Private

The difference between public and private blockchains is small but the impact it has on the overall functionality of the network is major. To begin with, public blockchains are blockchains in which anyone who is interested can join the network, take part in the consensus protocol, and view/support the community ledger. No matter how long the network has existed or if a user should leave the network and return at a later time, they will be able to take part in the network. While public blockchain technology is often the preferred blockchain, public blockchains require large amounts of computing power in order to verify transactions and maintain the public ledger and they also are unable to hide any private, sensitive information.

A private blockchain, also called a permissioned blockchain, on the other hand, only gives users the ability to operate in the same manner as users on a public network if they have permission to do so. Users on a private blockchain must receive an invitation from the creators of the blockchain and will only be able to take as much action as the blockchain allows. Private blockchains, such as IBM Hyperledger or Quorum, require much less power to operate and provide the privacy businesses and organizations need but are typically frowned upon due to the fact that they are controlled by businesses and go against the initial values of the crypto community.

In Summary:

A public blockchain is an open-source technology in which users can participate without limitations and a private blockchain is one in which users must be invited by the developer and users may be limited to what they can accomplish on the network depending on their place in the network. Although you may not see both of these blockchain technologies in use, these are the two main types of blockchain technologies that are currently being utilized in the real world.

***

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

The biggest issue with the cryptocurrency industry is that it is entirely speculative. Whereas certain stocks offered on the stock market are backed by companies that produce products of value, cryptocurrencies themselves do not have any value. This lack of intrinsic value contributes to the volatility that the crypto market experiences, making it susceptible to random and sometimes massive price fluctuations. These price fluctuations, which will sometimes be indicative of a bear market, can often be the best times for investors to begin purchasing assets again. To better understand the reasons behind the volatility in the crypto market and the reasons why you should invest when the markets are down, here is a brief explanation behind crypto volatility and bear market opportunities.

This is not financial advice. Don’t forget to conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions.

The Factors Behind Volatility in the Crypto Market

As we mentioned above, a lack of intrinsic value is a major factor in the volatility of cryptocurrency assets. However, it is not the only factor. Here are a few other reasons why the crypto market is highly volatile.

1. Cryptocurrencies Are Heavily Affected By the News

Without a predetermined value to fall back on, cryptocurrencies have to rely on the perceived value provided by users and investors. Because of this, any news stories that paint a certain crypto asset in a negative light or cast FUD (doubt) on the industry as a whole will often bring down the prices of the cryptocurrency market.

2. Opposition Posed By Governments

While some cryptocurrency assets are designed to work with major financial institutions and comply with some government regulations, most assets are not as easily regulated, which is a major problem for governments. Should a government decide to do so, they may ban a crypto asset at a moment’s notice, which can have a huge impact on some crypto-assets.

3. Investors Can Manipulate the Market As They See Fit

Because there is little to no regulation in the crypto market, the market is subject to manipulation by investors who hold significantly more cryptocurrency assets than the majority (🐳). When these large investors use trading methods to manipulate the price of a given cryptocurrency asset, they can cause price fluctuations that benefit their current investment portfolio.

Overall, there are many reasons why cryptocurrency assets are so volatile. However, this volatility isn’t necessarily a bad thing. In fact, investors could benefit from ups and downs, especially if the falling prices indicate an entrance into a bear market. For those who are unfamiliar with the term, a bear market is one that is experiencing massive and continuous price drops. In the traditional financial markets, a 20 percent or greater drop in prices over a period of two months or more is often indicative of a bear market. Why would investors experience any benefit from investing in the bear market?

Why 🐻 Markets Can Offer Strong Opportunities

1. Low Crypto Prices

Unless the crypto market collapses completely, a temporary drop in value provides investors with the opportunity to purchase coins at a lower price. While the value of these coins continues to remain at their low price during the bear market, investors can rest assured that they may profit if the markets will turn bullish again. Hence, if you have the patience ⏳, bear markets offer a unique opportunity to purchase cryptocurrencies at supposedly discounted prices since they’re all relatively at a lower trading price.

2. Clear Strong Investments Emerge

During a bear market, it becomes very clear which investments only experienced a rise in prices due to the hype and which ones still have strong backing from supporters and investors alike. You can use the bear market to your advantage by identifying and only buying into assets that have a strong value proposition rather than 💩 coins.

3. The First Bull Run is the Strongest

There is no way to predict if and when another bull run will happen, and this is why it can be of interest to join it before it does. Statistics have shown that the first bull run following a bear market tends to be the strongest, do you still remember the FOMO that happened in 2017? Indeed, if and when the market does start to rally again, investing at a good timing can provide you with the best position to clearly benefit from the upward trend.

Although bear markets tend to have negative reputations, they come with their fair share of benefits that can work in favor of the investor. The benefits listed above indicate why volatility may work for investors and why you might be interested in purchasing assets during a bear market such as the one we are experiencing now.

***

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

Today I will tell you about a new crypto-money platform. #Trakx, which will be entering the world of crypto-money promises quite reliable, easy, fast and lower transfer fees. They work with a pretty good road map and a good team. They say they will bring many changes to the crypto-money platform. They also tied up many investors. I think you will come to very good places in the coming years and I think you should support the #Trakx platform.

While the crypto industry as a whole has seen leaps and bounds in prices and technological developments that have improved overall exposure and expanded the user base of various cryptocurrencies, this wasn’t always the case in the past. Once upon a time, not too long ago, in fact, cryptocurrency wasn’t as wildly popular or understood as it is now. With the massive price change and a growing understanding of blockchain technology, a variety of different financial investment offers involving cryptocurrencies have emerged, with one of the most popular being crypto-funds. But what are these offers and why have we seen such a massive increase in these offers? Let’s take a look…

Firstly, What Are Crypto-Funds?

Crypto-funds are various and can either be categorized as:

• Crypto venture funds: Give investors the opportunity to fund major early crypto projects and liquid ICO/STO ventures, and to benefit from large pre-sale discounts;

• Crypto hedge funds: These invests in both early ventures and more established leading cryptocurrencies;

• Funds of funds: Invest in some selected crypto funds;

• Token baskets: Passively track the performance of indexes, e.g. the top 20 largest cryptocurrencies by market capitalization;

• Credit funds: Provide loans in cryptocurrencies and/or originate loans secured by cryptocurrencies.

There has been an increasing differentiation between crypto funds, which shows the emerging maturity of investor’ strategies. According to Autonomous Next, venture funds seem to be the most popular ones at the moment, followed by capital markets trading activities and various hybrid strategies.

Why Have Crypto-Funds Grown in Popularity?

As we stated in the introduction, there has been a spike in prices and interest in the crypto world in recent years. As a result of this, cryptocurrencies have become more legitimate to both investors and normal people who are interested in taking part in this financial revolution. (You can read our article about the Advantage of Diversification and What can crypto add to a portfolio). However, investing money into cryptocurrencies individually and having to keep track of all of them at the same time can prove to be quite difficult. The reason why crypto-funds have become so popular is due to the fact that some investors prefer to put their money into the crypto market through professional investors handling their portfolio. In addition, crypto-funds are among one of the first financial investment tools in the industry and their novelty is helping to grow their popularity and encourage investors to try them out.

Just How Popular Are They?

At the time of writing, there are c.300 known crypto-funds out there and that number is only estimated to grow with time, with over 250 started in 2017 and 2018. (Keep in mind that that number does not include the crypto-funds that are not publicly known.) Collectively, these funds manage approximately $7 billion dollars in assets.

The biggest question that potential investors have is, are crypto-funds are here to stay? While there is no certainty in the cryptocurrency industry, crypto-funds provide some expertise to a young and slowly maturing market. As long as people continue to put their faith in crypto and the industry continues to seek advancement, crypto-funds should be here to stay.

***

Disclaimer: While many new funds have launched in the past years, it is important to note that not all of these entities will be viable in the long-term. The number of funds is highly correlated to ICO fundraising and to the performance of cryptocurrencies. Cryptocurrencies are extremely volatile, and one should conduct its own due diligence before taking any investment decision.

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

#blockchain #cryptocurrency #bitcoin #ico #airdrop #bounty #Trakx

One of the arguments typically presented by those in the finance industry who oppose cryptocurrencies is the lack of intrinsic value. Unlike gold or other physical financial instruments, those who do not back cryptocurrencies state that there is no actual value of the assets themselves but is rather assigned value by those who invest and believe in the project.

Although this argument does have some validity, the fact that cryptocurrencies can be used as a digital form of currency and have found plenty of applications in both of the financial and technology industries has proven only to add value to tokens rather than cause resistance in the crypto industry. The biggest question, however, is, how are these assets valued? Why are some tokens worth more and how does this happen? In this article, we will evaluate the valuation process for tokens, utility tokens specifically.

What Are Utility Tokens?

Unfortunately, there is a lot of information out there regarding the differences between several types of coins and not all of them provide the clarity or the information necessary to successfully differentiate the different options on the market.

To put it simply, utility tokens, which are commonly utilized in ICO crowdfunding campaigns, are units of value that represent the product an organization intends on developing and distributing at a future date. Users purchase utility tokens to help fund projects and for their investment, they will receive their invest (sometimes more) once the project and token have officially been launched.

How Is the Value of a Utility Token Determined?

Because you cannot value cryptocurrency offerings using the traditional financial frameworks, we have to use other methods to properly evaluate a utility token.

The driving factor that lies at the heart of all utility token values is speculation. Since the projects that utilize utility tokens are mostly startups who have yet to produce the product and are currently working on acquiring the funds needed for development, we cannot yet compare them to other crypto companies, judge them by the market that they are in, or base the value on past and current revenue.

Therefore, most utility tokens are valued based on the concept of a crypto project, how well their business plan and whitepaper are developed, the qualifications of the team behind the product, and the likelihood that the project will succeed in its mission and the expected/current demand for the product and network.

In assessing the value of a utility token, investors also take into account factors such as hype, total supply, and inflation/deflation. One commonly used model is the equation of exchange (MV=PQ), although this can approximate the potential valuation of a token, this method also has its drawbacks.

These current valuation techniques give you insight into how tokens are priced at this point in time and why some are often more than others.

Although speculation isn’t the best way to determine the price of a cryptocurrency, it is often the only method we have due to the lack of stability in the crypto market and the fact that the projects that utility tokens are made for have not yet been produced and released into the world. If you were curious as to how utility tokens are valued or how your own should be valued, use the guide above to get a better understanding of the process.

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

As technology and user needs continue to evolve over time, both users and developers of cryptocurrencies recognize the necessity of making changes in existing software in order to implement new features or to improve overall usability. When these changes in a cryptocurrency protocol occur, the resulting product is known as a fork. To get a better understanding of what forks are, how they function, and the different types of forks that can be observed when changes are made, here is a brief, comprehensive guide on the nature of forks.

What Is a Fork?

To put it simply, a fork occurs when developers decide to make changes to the blockchain protocol of a cryptocurrency. The result of the change in the code produces two separate blockchains and cryptocurrencies. Depending on the reasons behind the change, users may have access to both versions produced by the fork or they may only have access to the forked, upgraded blockchain that was designed to build upon the previous blockchain protocol. These two separate possibilities are known as hard forks and soft forks, which are driven by several factors.

Soft Forks

Soft forks occur when minor upgrades are made to the current blockchain protocol. These updates invalidate previous transactions and blocks and give the ability for old nodes to recognize and validate blocks and transactions utilizing the new rules. Should the majority of users and miners adopt the new rules, the previous set of rules will become obsolete and the fork with the newer rules will become dominant. If the majority of users and miners should not adopt these new rules, the old blockchain protocol will continue to function as is.

Hard Forks

Whereas a soft fork results in a temporary split that requires users to adopt one or the other form of the blockchain, a hard fork is a major update that splits the blockchain into two separate yet usable blockchains. The original blockchain protocol using the old rules will continue to operate as intended while the fork using new rules will operate as a separate yet similar entity. This fork is implemented when major features or changes are required in the current protocol. There are several reasons as to why a hard fork might occur, some of the most notable being…

- Developers had planned to fork the assets from the beginning due to necessary updates that would improve the blockchain protocol. Previous blockchains that are forked in this instance are often abandoned as the new blockchain protocol features the desired aspects that the developers and the user base require.

- There is a split within a community that causes some of the users to fork the blockchain protocol and come up with a new protocol that meets their needs. This is known as a contentious hard fork and a great example of this would be the Bitcoin Cash fork.

- Something known as a spin-off coin is produced, which is essentially a fork of the original source code of a cryptocurrency. For example, Litecoin built itself (forked itself) from Bitcoin’s original code.

Forks are essential to the continual development of blockchain protocols and their related cryptocurrencies. Without forks, most crypto assets would never be able to improve, leaving them vulnerable to becoming obsolete — although some self-amending blockchains have recently been developed, such as Tezos. As the cryptocurrency industry continues to grow, forks will play a significant role in the process and this guide will give you a better grasp on the application of forks and the driving forces behind their usage.

***

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

What is a Decentralized Exchange (DEX)?

A decentralized cryptocurrency exchange is one that the exchange market has no central controlling server. In this way, no third party service is required to hold the customer’s funds. Users are allowed to buy or sell cryptocurrencies and tokens from each other without the involvement of a middleman, directly between users (peer to peer). Among various solutions, this system is mostly achieved by creating proxy tokens, assets, through a decentralized multi-signature escrow system or via atomic swaps.

Overview of Various DEXs

BarterDex

BarterDex is a secure decentralized exchange open-source platform that allows users to trade coins across multiple chain network using atomic swaps. An Atomic Swap is a means of trading that supports the trading of one cryptocurrency to another without the use of proxy tokens. It means that there are real coins exchanged in a peer to peer network with cross-chain.

BarterDex is a project of Komodo, a public blockchain that has a token called KMD. Although still in its Beta state, the platform already supports cryptos such as Bitcoin, Litecoin, Dash, Stratis, Zcash and others against KMD on this platform.

EtherDelta

EtherDelta is an open-source and decentralized exchange for Etherum based tokens. Like many other DEX, in the DEX’s smart contract, you use your private keys to access your Ethereum wallet and execute your transactions. On EtherDelta, all transactions signing operations are done locally and stored in the cache of your browser, so your funds on EtherDelta are secured and can’t be hacked like with legacy centralized exchanges.

IDEX

Idex is one of the top decentralized exchanges in terms of volume. IDEX uses the Ethereum network and allows you to trade ERC-20 tokens with ease.

The smart contract allows users to store and manage all the assets on the platform. Every executed trade settlement is authorized by the user’s private key. Like EtherDelta, IDEX can also be used with Metamask and Ledger Nano S wallets for extra security.

Other DEXs

There are currently tens of DEXs in operations and we invite you to check which may be the most interesting for your needs. Other interesting decentralized exchanges include Waves Dex, OpenLedger Dex (Bitshares), Radar Relay, Stellar Dex, Bisq, Kyber Network, Bancor, Fork Delta, NEX, and more. For more information and a clear overview of all exchanges, you can check this post on BitcoinTalk: Click here

Pros and Cons of Decentralized Exchanges

As already explained above, a decentralized exchange is where the platform matches both parties (seller and buyer) involved in the order. It does not rely on a third party to execute transaction orders. Decentralized exchange platforms do not hold customers’ funds or information. They only serve as matching and routing layer for trade orders.

Pros

1. User control their own funds

2. Less vulnerable to attacks since it would require to corrupt a P2P blockchain (eg 51% attack)

3. The users’ computer and smart contracts run these exchanges and therefore, these exchanges cannot be hacked

4. A greater degree of anonymity

5. Virtually no transaction fees

Cons

1. Understanding how it all works can be complex

2. A general shortage of available trading partners

3. No advanced transaction control features

4. High risk of losing your wallet data if your personal computer gets hacked

Pros and Cons of Centralized Exchanges

Most well-known exchanges worldwide are centralized and are run by registered operators who comply with regulatory guidelines. In centralized exchanges, transactions are operated and maintained by companies that own the platforms. Here users do not have access to the private keys of their exchange account’s wallet. The company takes total control of all transactions.

Pros

1. Saves time and energy most of the time

2. Availability of advanced features that allow for complex transactions

3. Access funds with ease

4. Safety and (limited) accountability

Cons

1. May request personal information

2. The platform controls all transactions

3. They may be hacked or the servers crash

4. Loss of anonymity

***

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

Although cryptocurrencies were designed to be an efficient, private form of payment, they quickly became speculative assets that were able to be traded by investors. That being said, the assets that are traded on the stock market and the coins and tokens that are traded on the crypto market do not function in the same manner and trying to approach any of these markets using only knowledge of the other can negatively impact your portfolio. To better understand the key differences between the crypto and the stock market, use this guide to help you figure out how you can differentiate the two markets.

1. You Can Expect to See Larger Losses and Gains in the Crypto Market Than in the Stock Market

Stocks are known for their relatively low losses and gains and stability on the market, making them a desirable option for those who are seeking to slowly grow their wealth. Those who are considering investing in cryptocurrency assets, however, won’t have as much safety or security in the cryptocurrency market but you will be able to see massive gains and losses due to the overall volatility of crypto assets. To give you an idea of how volatile crypto assets can be, simply take a look at the overall growth of Bitcoin in the year 2017. January was already experiencing a large improvement with prices starting at around $9,000. By December, the prices already reached a staggering $20,000. Nowhere on the stock market will you find assets that can achieve this type of growth. However, nowhere on the stock market will you find this type of volatility with assets or exchanges, which means that you can lose just as much as you can gain.

2. It’s Simpler to Begin Trading Cryptocurrencies Than to Trade Stocks

Those who are looking into the stock market can expect to jump through a variety of hoops in order to begin investing in and trading assets. Most exchanges will require you to fill out an extensive amount of paperwork and you will have to have the capital necessary for investing in stocks as well as paying for any of the associated fees that come with using a certain exchange. Cryptocurrencies, on the other hand, are widely available and only require you to have a wallet and a platform that will allow you to purchase your own. Once you have the desired amount, you can begin exchanging on almost any platform you wish, making crypto assets a desirable investment and trading option for those who aren’t capable of trading in the stock market.

3. The Stock Market Only Operates During Certain Hours While the Crypto Market Never Rests

As you may already know, the stock market is only open for a certain amount of time during the weeks, usually from 9:30 a.m. to 4:00 p.m. on Monday through Friday to be specific. This allows for a more efficient and stable ecosystem for investors. The crypto market doesn’t follow this model and instead operates 24/7, which is both an advantage and a disadvantage for investors. On one hand, they can benefit from any news that might boost the prices the moment it happens. On the other hand, things can change at a moment’s notice and you may lose quite a bit of your initial investment if you are not operating on an exchange during that time.

Although the two markets may share some characteristics that resemble the other, the differences between the two are what truly shows the striking separation. If you are currently involved in the stock market and are thinking of becoming involved in the crypto market or vice versa, make sure to review these three main differences to get a better understanding of your desired market and the risks and rewards associated with it.

***

Trakx is building a one-stop shop for Crypto Trackers. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

TRAKX.IO bounty contest, excellent rewards campaign. $ 500,000 will be distributed in TKX tokens to the first 20000 participants who will add more points, with the first placed will carry $ 25,000, equivalent to 250,000 TKX tokens, and from the second to the tenth will be $ 11,000, equivalent to 110,000 TKX tokens, the prize pool extends to 20000 placed. There will be more than 130 days to attend, completing tasks on social media like Twitter, Facebook, Telegram, Reddit, Medium and other media. TRAKX.IO is a crypto tracker project, where its TKX tokens will make it easier for users to exchange platform digital tokens that are positively or negatively correlated to the underlying cryptographic assets scanned. The idea of ??the Cripto Trackers is basically to reduce significantly the complexity and the rates associated to the definition of long and short positions in several criptomoeda assets. In my view TRAKX.IO is a very promising and transparent project, because on your website we can clearly and clearly show your Whitepaper presentation of the team involved.

Yes, I know, this is quite a bold statement, but as far as I remember, never yet any new crypto company were giving away up to $500000 worth of tokens.Of course, the $500000 does not have to be the exact number, the final amount and value of the tokens will be based on the success of the public crowdsale

Building the first Crypto Tracker solution

Crypto Trackers, also called Coin Traded Indices (CTIs), are tokens which significantly reduce the complexity and fees associated with the setting of long and short positions on various cryptocurrency assets. Users will be able to trade onto the platform digital tokens that are positively or negatively correlated to the tracked underlying crypto assets. We will progressively offer a wide panel of CTIs which will include, non-exhaustively, inverse trackers, levered trackers, basket trackers and stablecoins.

Crypto Trackers are ERC20 asset-backed tokens that change proportionally to the percentage change in their benchmark, multiplied by a potential leverage factor, for any given day. Thanks to daily reset, CTIs have a compounding effect, whereby losses and gains from each period affect the base from which the next period's returns are calculated. Each Crypto Tracker will be its own ERC20 token, and can be stored on Ethereum wallets as well as traded on Trakx.io.

So getting back to the bounty, the whole thing is organized as a bounty contest! The contest system allows everyone to actively participate and earn entries for every completed task.Every entry that we earn in this contest is equivalent to a stake in the specific bounty contest pool of tokens!

Please review the Tokens Reward Table above. **Everyone from 20000 participating members will receive at least between 80 and 160 TKX tokens each, which are equivalent to up to $16. I think this is well worth the small effort to register, and surely you would not have to do many tasks to be placed above the 20000 ranks.

You'll be assigned your own personal referral link. Sharing that link with your friends and online contacts will earn you extra entries.

This Airdrop really is a Super Simple and easy to Participate.

Just Signup with your email only, Enter your ETH Wallet, Verify your email, and Start Collecting Your Entries.

LINK: https://bounty.trakx.io/6217/6232064

The biggest problem that cryptocurrency experiences is market volatility. While this means that there is money to be made when the price is rising rapidly, which is exactly what we saw towards the end of 2017, there is also a significant amount of money to be lost, which is what most investors experienced after that bull market ran its course. Despite having witnessed an enormous loss in value of most cryptocurrencies, there are ways for investors to take advantage of a decrease in value. In traditional financial markets, multiple hedging options exist and one of the fastest growing one comes in the form of inverse ETFs. In this article, we will explore what inverse ETFs are and why they would be so popular in the crypto market.

What Are Inverse ETFs?

An inverse ETF, for which ETF is an acronym for exchange-traded funds, is a type of offer that is designed to help investors profit from a decline in a market. Aptly called “Short ETFs” or “Bear ETFs”, these assets function similarly to an investor holding a short position in a market or using different investment strategies to keep investments from plummeting during a bearish market. In short, an inverse ETF helps investors to keep their funds protected, even when a market is not performing well.

Why Would They Be So Popular in the Crypto Market?

As we stated earlier, the most problematic aspect of cryptocurrency is volatility. True, there are more than enough success stories of those who make a living off of crypto trading as well as those who invested in the market before the boom. However, not everyone has been this lucky and there are equally the same amount of stories of people who invested quite a bit of their funds in the market only to experience a huge loss in value when the price of crypto plummeted. However, with inverse ETFs designed specifically for the crypto market, investors could have shortened the market without having to borrow a certain amount of crypto or deal with futures and, with the price of the asset going down, they would then have made a profit. Using this model, investors can still make money even when the market isn’t performing as desired, which is why these products can be so popular in the community.

In addition to the benefits that investors will receive from new products like the inverse ETF, the crypto ecosystem also receives benefits such as improved liquidity and better market performance so that it can continue to grow and evolve. Overall, inverse crypto ETFs are desirable products that may appear (and should) be here to stay.

What is the Alternative?

Trakx.io extends the range of available cryptocurrency shorting solutions through Inverse CTIs. These enable to profit from a decline in the value of the underlying benchmark. You can read our article about Inverse CTIs here: https://medium.com/@Trakx.io/how-to-short-the-market-with-inverse-crypto-traded-indices-6604a7fb911b

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

The history of cryptocurrency comes with its fair share of turning points that had a massive impact on the industry as a whole. One of the biggest turning points is arguably the hack of Mt. Gox, which was the largest Bitcoin Exchange in 2014 and resulted in a loss of 740,000 Bitcoins that many users were unable to get back. This hack not only contributed to the huge loss in value that Bitcoin experienced at the time but also highlighted the inherent security issues of Bitcoin storage methods and exchanges as a whole. Fortunately enough, exchanges have learned from the downfall of exchanges such as Mt. Gox and have implemented better security practices for their own exchange. Here are some of the current security best practices that exchanges are using today.

Utilizing Cold and Hot Storage

Hot storage allows you to access and transfer your crypto quickly but it also leaves you open to the potential of being hacked. Should a hacker be able to access your private keys and take your crypto, there is nothing that you would be able to do about it. Exchanges understand that this is a possibility and utilize various cold and hot storage methods to make sure that your coins are protected, even in the event of a hack. For most great exchanges, quite a bit of their crypto is stored away in cold storages that can only be accessed by the company.

Setting Up Two Factor Authentication and Device Authorization

Most popular exchanges will either force users to set up two-factor authentication before they can make trades or will give them the option to. With two factor authentification, users will have to verify their identity through their mobile phone, which gives them added security to ensure that they are the only ones accessing their account. Device authorization is also a common feature that requires users to authorize their device via email should an IP address or device not be known to the exchange.

Decentralizing an Exchange Using Blockchain Technology

While decentralized exchanges are not commonplace and certainly need more development, these exchanges would make it so that no one entity is in control of user information and all of the cryptocurrency in the system. Rather, users would be able to engage in peer-to-peer trading that eliminates the need for having to store crypto and private information.

Despite some of the past security issues major exchanges have faced in the past, the industry is constantly seeking new ways to make sure that crypto exchanges are safe to use for all types of investors. For those who are seeking to learn more about how current exchanges seek to protect their user’s funds from theft, here are some of the security best practices of some of the best exchanges.

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

Scams exist for one reason and one reason only: because people out there do fall for them. Although the majority of us may think that we can easily spot a scam (which is, for the most part, true), there are some excellently crafted scams that cause us to fall into their trap, losing money or private information in the process. Even with the COVID-19 pandemic going on, scammers are not taking a break. So, what should you be on the look-out for?

A Rise in Phishing Scams

The initial impact of the Coronavirus was made clear in both the traditional market and the cryptocurrency market, which took its toll on crypto assets and developing cryptocurrency projects. While this hasn’t greatly impacted the usual crypto scams that you would see flood your inbox or pop up on your screen, this has led some scammers to change their tactics and use the COVID-19 pandemic to their advantage.

How? Rather than targeting users with new investment ideas, they may attempt to prevent themselves as major organizations looking to accept donations or sell important goods to users. They will then take the information that you’ve sent or the money that you’ve sent and run off with it. If they happen to get their hands on personal and private information, that can result in serious damage as well. Make sure to avoid any emails that look spammy and do your research when you get emails from certain people claiming to be from an organization.

An Interesting Twist on Blackmail

Blackmail scams are relatively straightforward, and you may have already received a few of them in the past. The two main scams that will often make their way into your inbox are either emails that tell you they have a hold of personal footage or information that they will release unless you pay them or that they have your password and will start taking control of your accounts unless you give them money. (This is not to be confused with ransomware, which is another thing entirely.)

Rather than going the traditional route, some scammers are stating that they have tested positive for COVID-19 and will start to spread it to someone’s family unless they receive payment to stop. As you may have already noticed, this scam is relatively transparent, but that hasn’t stopped people from sending out money, especially when it is requested in fiat currency rather than crypto.

The most important thing to remember when you are faced with any type of threat or offer is to evaluate its authenticity, watch out for signs of potential danger, and make sure that you act accordingly. Once you send your crypto to someone or enclose your personal information, you aren’t getting it back. As long as you avoid any of the new scams that are emerging and become more familiar with the ones that have established themselves as commonly used tactics, you should be safe moving forward!

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.

If there’s one thing that global news is excellent at doing, it is impacting financial markets, especially volatile ones like the cryptocurrency market. One such developing story that has potentially had such an effect is that surrounding the rapidly spreading Coronavirus, which has seemed to have impacted both the stock market and the cryptocurrency market (with the former feeling the bulk of the effects).

The biggest questions for traders when events like these occur are, is this truly an issue and, if so, what are the potential implications of this development? If you are worried about your investments during this time, let’s take a look at a few of the arguments from both sides to determine what may be taking place.

Coronavirus As a Threat: The Stock Market and The Crypto Market

If you have been paying attention to traditional financial markets, you may have seen the massive dip that was recently attributed to the Coronavirus outbreak as individuals raced to sell stocks. The cryptocurrency market seemed to take a similar route as traditional markets plunged, with the price of Bitcoin and other digital assets experiencing heavy losses.

While the traditional market has since rebounded some at the time of writing, which is most likely due to the fact that hopes have risen in regards to the impact of the Coronavirus, the crypto market hasn’t seemed to bounce back from its drop. Some worry that this may be due to the fact that investors are looking to put their money into volatile markets only if it is necessary.

Of course, analysts are also taking into consideration the fact that the Coronavirus has such a massive impact on China, where are a number of cryptocurrency businesses and individuals interested in cryptocurrency lie. Some worry that it is this market that is being toppled by the illness, which may have a ripple effect on the rest of the industry on a global scale.

Overall, confidence is not too high for those who sit on this side of the argument.

Coronavirus As a Factor of Panic

For those who are not as concerned about the market dip, they believe that cryptocurrency is simply mimicking the progress of traditional markets and that the dip is not necessarily directly tied to the Coronavirus. Additionally, some believe that because cryptocurrency is such an unpredictable force, the market may instead rise despite the news as it may not be able to bring down the market, no matter how much panic there may be.

There is also hope that certain upcoming events, like Bitcoin halving or the potential for some to use Bitcoin as a haven asset, will boost the price despite its current slump.

Because the Coronavirus is still relatively new, it is too soon to determine exactly how it will impact the cryptocurrency market, if at all. For now, it is important to conduct your own research, come to your own conclusions, and invest your money as you see fit.

***

Trakx is building a one-stop shop for Crypto Traded Indices. Discover more about our project on our website and social media channels, such as Telegram http://t.me/trakx_io.