Executive Summary
Project Description
As large as the crypto market is currently, there are still some inadequacies when it comes to large volume trades. Exchanges do not have the needed liquidity to handle big transactions, and if, for example, there is a buy order for 1 million units of a certain crypto asset, before 10% of the order is filled, the demand will cause a spike in the price of the asset. In the end, the buy order price would have to be increased, and the same will continue steadily until the order is filled. This lack of liquidity causes significant “slippage” of value; experts estimate a slippage of about 5–10% per trade.
Xtrade wants to solve this problem by unifying the cryptocurrency exchange markets, thereby pooling liquidity and reducing the inherent “slippage” in large volume trades. They aim to accomplish this with the 3 platforms they are developing. The platforms include a multi-exchange FIX API, the Xtrade pro trading platform, and a cross-exchange single point of access (SPA) liquidity aggregation execution protocol.
The FIX API will be based on the Financial Information eXchange protocol used by traditional traders, and it will provide access to multiple exchanges through a single API. The pro trading platform will also cut across exchanges; furthermore, it will run on a robust, low-latency software. Lastly, Xtrade will implement, in partnership with other exchanges, the Xtrade SPA. This system will reduce the risks that comes with having accounts on multiple exchanges, and it will combine liquidity among multiple platforms.
The funds of Xtrade users will be stored on the SPA exchange, and when a particular user wishes to execute a transaction at another exchange, Xtrade will perform the transaction using their own inventory account at that exchange; they will then move the position to the SPA exchange for settlement.
Xtrade also plans to run a Dark Pool and use it to internally match clients’ orders. They plan to generate revenue through trading fees, market services, the sales of market data, software licensing of their trading program, and a Xtrade VPS. The XTRD token will be ERC20-compliant and all the fees mentioned above will be paid for in XTRD.
Hard Cap and Valuation
Xtrade set a hard cap of $45 million for 50% of their token total. The remaining 50% is shared thus: 29% is kept in reserve, 10% goes to their advisors, the team gets 10%, and the final 1% is for bounties.
Price Per Token
Each XTRD token will cost $0.10.
Important Dates
The public sale of XTRD will start on the 20th of February, 2018 (subject to change).
Marketing Power
As at the time this post was published, Xtrade had more than 15,000 followers on Medium, over 8,300 followers on Twitter, 1,750+ users on Telegram, and over 3,750 subscribers on Facebook.
Howey’s Test
According to Howey’s Test conducted by our analysts, it is unlikely that XTRD will be considered a security.
Team Members’ Areas of Expertise
Business experts
Alexander Kravets, Co-Founder.
- Managing director at Genesis capital, an investment firm, for 10 years.
Sergii Gulko, Co-Founder and CTO
- Founder and CEO of Axon, a tech company, for 12 years.
Jon Giacobbe, Co-Founder and COO.
- Analyst at Goldman Sachs for 4 years.
Marketing experts
Tom Osman
- Founder of Blocknauts, a crypto-specific marketing company.
Addison Huegel
- Managing Partner at Elevator Communications, a marketing company, for 12 years.
Legal experts
One of their advisors, Gary Ross is a partner at Ross & Shulga PLLC.
Software engineering experts
The Engineering aspect of the platform is basically under the management of Axon, Sergi Gulko’s company. The following are the experts from Axon overseeing Xtrade’s engineering:
- Aleksey Pekar
- Alexander Levakov
- Nikita Tropin
- Sergey Pogorelovsky
- Sergey Grishkin
Blockchain development experts
No team member with notable blockchain development experience.
Token sale structure experts
No team member with notable experience in token sale structure. However, one of their advisors Justin Wu works as the Head of Growth at Coincirle, and before that, he was an advisor at Unikrn during the launch of their token, Unikoingold. All these point to some token sale structure experience.
Token economics experts
Same as above.
Disclaimers:
- Nothing written in this article is a legal or an investment advice.
- Information is provided on a best-effort basis and is subject to change without prior notice. Be sure to verify everything you read with a project team.
The analysis was produced by Research Center team members: Orion Holmes, Mark Jedd, and Eugene Tartakovsky.
We are constantly working on improving our work and welcome all constructive feedback. Let us know what you think.
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Thanks for sharing yet another analysis! Xtrade is trying to raise quite some capital I see for those 50% of tokens. Not sure if they need that much, unless they want to spend it on marketing, which according to their website is only 5%. Not sure why they need 65% of the money for the SPA. Anyways, I haven't really looked into it much further.
Can I make a suggestion for your future posts? It can be interesting to include a list of projects that are focusing on solving the same problem (or at least when they have a big overlap, because everybody says they're different of course). This would definitely valuable to me and probably some other readers as well :-)
You're welcome, thank you for being with us :)
That's is definitely a good idea. We've been working on it internally for some time. It turned to be complicated to properly classify projects into verticals. Most of the time one gets either a classification that is too granular or the classification that is too broad to be useful. We decided to postpone adding that section until we can come up with something we consider useful ourselves. As soon as we do that the section will probably be added.