The security token community welcomed the STX.Swiss exchange to the market this week. The Switzerland-based platform is among the first licensed decentralized exchanges (DEX) developed to host security tokens. Now, STO investors can enjoy instant peer-to-peer trades with zero fees.
The developers behind STX.Swiss want to tackle some of the biggest issues currently facing the crypto trading sector. Specifically, the platform confronts the rise in hacks, scams, and exchange-related fund delays. To accomplish these tasks, the exchange needed to take a unique approach to the market.
The STX.Swiss exchange originated as part of the HackerOne bug bounty hosted earlier in the year. HackerOne is a cybersecurity firm that utilizes hackers to find weaknesses in corporate systems. The firm helps programmers create more secure platforms. Consequently, the STX.Swiss exchange employs a variety of strategies that make it unique.
STX.Swiss is a peer-to-peer non-custodial decentralized exchange (DEX). This platform combines a plethora of new technologies to protect your Satoshis. For one, as a non-custodial exchange, the platform never holds your tokens. Instead, your tokens remain safely in your wallet until the time of exchange. Exchange fund delays are a real problem. In the past, exchanges have held users funds when hacked or instituting KYC regulations.
Benefits of Decentralized Exchanges
Decentralized exchanges are the natural evolution of the market. Currently, exchanges represent the main concentration points in the space. Consequently, a few centralized exchanges hold the majority of crypto in trade. Unfortunately, this makes these exchanges a prime target for hackers looking to score some easy crypto.
Not surprisingly, exchange hacks are on the rise. Just this week, one of the biggest exchanges in the world, Binance, had around $40 million in Bitcoin stolen. The hack made headlines globally. As a result, Binance suspended user withdrawals. This is exactly the scenario that STX.Swiss eliminates.
Discussing the project, STX.Swiss’s Chief Developer, Michael Dietz explained how the platform functions, and why it is a game changer in the space. He cited both increased efficiency and improved security. Also, he took a moment to point out that the entire project completed in conjunction with Chain Security audits.
How STX.Swiss Works
According to Dietz, the STX.Swiss platform functions on the Ethereum blockchain. This strategy makes sense, especially when you consider that the ERC-20 token standard is the most popular in the market. This DEX utilizes an Ethereum Exchange Smart Contract known as the Uniswap protocol in combination with an On-chain Order Book.
Simply put, when a trade executes, funds exchange via the Uniswap protocol. Lastly, the trade is registered on the ETH blockchain upon completion. In this way, all transactions remain blockchain linked.
Security Token Exchange
As the security token sector continues to expand, there is a strong push towards more liquidity in the space. Security token exchanges provide this. These registered exchanges differ from traditional crypto exchanges in a couple of key ways. Primarily, users must adhere to all securities regulations when trading on these platforms.
STX.Swiss is Active
Both investors and token issuers can utilize STX.Swiss currently. The platform started accepting token requests and reached out to token issuers this week. When you consider the rate the security token sector is expanding, and the benefits the platform brings to the table, it’s hard to imagine a scenario where STX.Swiss doesn’t see success.
Siemens to Tackle Green Energy with Swarm Capital
Clean and renewable energy: The concept is simple, however, the execution is anything but. In an effort to aid the continued development and adoption of sustainable energy, worldwide tech giant, Siemens, has turned to a popular blockchain service provider – Swarm.
Today, this pairing of companies announced that Swarm has been tasked with developing an efficient, and effective, solution to facilitate the funding of energy projects in Africa. This task will be completed through use of the company’s recently announced premium tokenization service, Swarm Capital.
While details regarding the partnership are still scarce at this time, this is most definitely a positive announcement. Not only does it mark continued early adoption of Swarm Capital, but also the entrance of a global titan of industry in Siemens, into the world of blockchain.
Announced mere weeks ago, Swarm Capital is a service provider platform, offering premium services through a modular platform. This platform, which is built on the Swarm protocol, is meant to be a comprehensive solution for any company looking to tokenize an asset.
In their partnership announcement, the team at Swarm took the time to comment on why blockchain is a good fit with future energy solutions through Siemens. They stated,
“One of the most compelling use cases for tokenization is in the energy sector, which has been brought to the fore lately in public discussions concerned with energy accountability, transparency, and sustainability. The energy industry is abundant with potential use cases — from the tokenization of energy itself to the digital representation of carbon emissions.”
Swarm is a U.S. based company, which was launched in 2018. In the time since, the team at Swarm has developed a myriad of services and solutions for the digital securities sector, including specialized token standards, open protocol, and more.
Cofounders, Philipp Pieper and Timo Lehes, currently oversee company operations.
Founded in 1847, Siemens has withstood the test of time, establishing themselves as a world leader in manufacturing and tech industries. The company has done this by continually looking towards, and planning for, the future – as evident by the partnership described here today.
CEO, Joe Kaeser, currently oversees company operations.
In Other News
For a few years now, we have seen various companies attempt to integrate green energy and blockchain. We have, in the past, detailed multiple companies that fall into this camp. While integrating blockchain and green energy in a different manner than the development discussed here today, the following articles demonstrate another avenue in which the two sectors can coincide.
CoinShares Issues Gold-Backed DGLD Tokens
CoinShares made a splash across the tokenization community this week after announcing a new gold-backed token network. The network will allow investors to take advantage of the stability of gold, whilst still enjoying the added security and efficiency of a blockchain-based system.
How CoinShares New Platform Works
According to CoinShares’ executives, each token represents physical gold. To be exact, each DGLD token is backed by 1/10 Troy ounce. This gold is held by one of Switzerland’s premier precious metal traders MKS SA.
MKS SA – Swiss Precious Metals Trader
For their part, MKS SA will hold the gold reserves and allow for third-party auditing to occur. In total, the firm put aside just over $20 million in gold for the tokenization strategy. Notably, MKS SA already hosts a large precious metal trading network. Consequently, tokenizing their gold provides far more liquidity than traditional EFTs.
Speaking on the new tokenization strategy, CoinShares’ Chairman, Danny Masters explained the advantages of the maneuver. For one, gold is considered one of the most stable assets on the planet. Now combine that stability with the security of a blockchain network, and you get a frictionless trading system that has the capabilities to function internationally.
Eliminates 3rd Parties
Masters also discussed how CoinShares eliminates many of the third-party verification systems encountered when investing in Gold EFTs. Each of these verification steps adds costs and time to the total transaction. Now investors can eliminate these delays and save money on fees.
Gold on Bitcoin Blockchain – CoinShares
CoinShares decided to utilize the Bitcoin blockchain as its core anchor for the platform. This was a smart strategy as Bitcoin is the largest and most secure blockchain on the planet. To make the concept a reality, CoinShares incorporated CommerceBlock’s Ocean sidechain.
Sidechains Are the Biz
Sidechains such as Ocean, Liquid, or the Lightning Network allow users to conduct faster transactions with fewer fees. Also, these second layer protocols enable developers to utilize additional functionalities not found on the original Bitcoin blockchain.
Smart contracts are a perfect example of how sidechains benefit Bitcoin. Technically, Bitcoin’s blockchain can handle smart contracts but it’s far less capable than the robust capabilities found in the Ocean sidechain.
Partnered with BTC Wallet Provider – Blockchain
Another key component of the venture is a strategic partnership with the crypto wallet provider Blockchain. Blockchain needed to create a means for investors to store their gold-backed crypto easily and efficiently.
CoinShares’ new gold-backed token is open to both retail and institutional investors. Currently, the product is available in 200+ countries via Blockchain’s crypto exchange – PIT. Notably, the platform requires AML and KYC adherence as part of the company’s regulation-friendly approach to the market.
CoinShares is ready to provide clients with a stable alternative in the crypto sector. The firm has years of experience connecting traders with profitable tokens. Now, CoinShares wants to take its experience and enter the tokenized precious metals markets in a major way. You can expect to see more headlines from these developers as CoinShares’ strategy unfolds over the coming weeks.
VeVue Signs Partnerswith CBX for Token Launch
The blockchain-based social media platform, VeVue announced plans to host an STO in the coming weeks. The company intends to expand the platform’s capabilities with the funds raised. Now content creators have a more lucrative alternative to consider moving forward.
News of the company’s intentions first broke via an October 14 press release. In the post, the company announces its new strategy and partnership. As part of the firm’s new crowdfunding approach, VeVue partnered with the hugely popular CBX exchange.
For its part, CBX will be responsible for the sales, token issuance, and distribution of the VUE token. CBX is one of the largest crypto exchanges based in the Middle East. The firm operates a fully compliant EU exchange. Developers integrated both AML and KYC protocols directly into its trading platform.
CBX recently launched a campaign with Alibaba competitor GoJoyin in which the platform secured over $10 million in funding. The experience gained in this campaign will be critical for VeVue STO’s success.
The VeVue STO will commence on October 28, 2019, at 4 pm PST. Interestingly, the event is scheduled to only last 48 hours. CBX intends to issue 5 million VUE tokens to qualified non-US investors. Vevue also announced that there will only be 100 million VUE tokens in total available to investors. Of these tokens, 35 million are reserved for investor purchases.
Vevue and CBX Unique Strategy
CBX and Vevue have a unique strategy for their crowdfunding efforts. The company intends to host an STO monthly moving forward. Additionally, these auctions will be Dutch-style. Basically, the official token price is set after taking in all bids.
Highest-Price VeVue STO
This strategy enables the firm to receive the highest price for the total offering. For example, investors place their bids which include the price and quantity they desire. The firm will then accept the top 5 million bids for the tokens.
VUE Token Benefits
VUE token holders receive a portion of gross revenue collected via the VeVue social media app. Consequently, investors actively earn from VeVue’s ecosystem. The App provides content creators with a revenue-generating outlet. Here, users can create and monetize content such as videos easily.
VeVue Transaction Fees
Vevue charges a 5% transaction fee on the monetized content. This fee then enters into the dividend pool from which STO investors receive payments daily. Importantly, dividends are paid in VUE tokens. This unique strategy encourages users to create high-quality content to earn more tokens.
Next Level Social Media
Traditional social media doesn’t allow users the opportunity to earn from their content contributions. In fact, the current social media giants provide content creators with zero payment for their efforts.
Social Media Heat
VeVue’s timing is impeccable as social media giants such as Facebook continue to confront lawmakers over a myriad of concerns. Facebook, in particular, appears to be in the target of regulators after announcing plans to issue its own native cryptocurrency called the Libra.
A Better Social Media Alternative
VeVue appears to have unlocked a better way to social media for everyone. Providing users with an opportunity to earn tokens for their content is a smart concept that has proved to be a great alternative in the past. You can expect to hear more from VeVue in the coming weeks as its STOs hit the market.