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How Decentralized Exchanges Are Taking Over

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While decentralized exchanges are being heavily pushed in the cryptocurrency industry, it will take a while before they can really take over centralized exchanges.

In many ways, cryptocurrency exchanges act as the backbone of the industry. They are the medium through which an overwhelming majority of cryptocurrency is traded, they have been an avenue for the introduction of institutional support into the industry. The fortunes of cryptocurrency exchanges also reflect the current state of the industry in terms of token supply, token price, and demand for tokens. 

However, the last few years have seen a shift in the setup of many cryptocurrency exchanges. At the beginning of the industry, the most common types of exchanges were strictly centralized exchanges. A centralized exchange is one in which the funds to be exchanged are held in trust by the exchange until the trade is completed. These are kept in official exchange wallets and are dispersed according to confirmed transactions. However, the use of decentralized exchanges came with several downsides. 

The most common issue was that of hacks. In the last few years, several high profile cryptocurrency exchanges suffered hacks, including Binance and KuCoin. The customer funds which were stored in company wallets were stolen and most of the funds were never recovered. Then there was the QuadrigaCX saga in 2019 in which millions of dollars which belonged to users of the exchange was permanently lost after their CEO, who was the sole holder of the keys to the cold wallet, died unexpectedly. 

These incidents revealed a significant flaw in the current exchange system; if a single entity had custody of users’ information and funds, an attack on them might prove catastrophic if successful. This is partially where the demand for decentralized exchanges came from. 

Rise of Decentralized Exchanges

Decentralized exchanges, as the name would imply, are exchanges that do not operate as a central entity. Customer funds are not held pending transactions but instead, customers are connected on a peer-to-peer basis. The privacy of users is ensured and funds are transferred via the use of smart contracts. This has appealed to consumers who wish to maintain their privacy or are distrustful of centralized entities. 

This resulted in many large exchanges such as Binance offering decentralized versions of their exchanges and more organic decentralized exchanges popping up. Many of the newer decentralized exchanges have also 

Plutus, a rare crypto to fiat decentralized exchange with its own crypto card, recently announced plans to pursue a banking license, launch in Latin America, launch in Asia, and rapidly scale the business. They have also revealed their Pluton Liquidity Injection Programme (PLIP) which involves partnerships with five exchanges and several micro-sales.

Their native token PLU also went on sale recently to enthusiastic responses from the public. The first sale took place on their own internal platform, the PlutusDEX. PLU is being sold at $8 and the exchange has implemented several unique features that have made it incredibly successful, such as a 40% bonus – Whatever a user pledges for, they receive a 40% bonus in PLU on top, an extremely high bonus rate that you don’t see elsewhere.

However, due to increased demand, the sale was oversubscribed in just 48hrs and Plutus had to extend the sale and the cap to accommodate the demand. The sale has now ended (Oct 13), it was oversubscribed twice over in just 6 days.

The success of the sale stems down a few important and rare factors. There was a cancellation policy which means that participants could cancel their pledge if they changed their minds. Furthermore, there is a price-floor guarantee – the minimum rate of PLU on the PlutusDEX has been locked at $8 for 90 days meaning participants can sell PLU back at the same rate they purchased (limits apply).

They are also offering premium membership. This means that all participants will automatically get a 6-month free membership worth £/€9.99 per month.

Decentralized Exchanges into the Future

While decentralized exchanges are being heavily pushed in the cryptocurrency industry, it will take a while before they can realistically usurp centralized exchanges. First, centralized exchanges have had a head start for several years and as such, have been able to accrue a significant userbase. Furthermore, they offer a roster of products such as margin trading that decentralized exchanges do not offer yet, which gives them an advantage.

However, it is likely that the industry will innovate and when it does, we may very well see decentralized exchanges finally take center stage.

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Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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JPMorgan Tests Use of JPM Coin with New Blockchain Division Onyx

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By launching its JPM Coin, the banking giant aims to eliminate all the hassle of payment settlements and verification that comes with the traditional paper-based structure for its cross-border payments.

On Tuesday, October 27, Wall Street banking giant JPMorgan finally tested the commercial utility of its native stablecoin JPM Coin. This is for the first time that a major technology giant is testing global payments using blockchain-based digital currencies.

The test comes nearly 18 months after JPMorgan announced its JPM Coin back in February 2019. As reported by CNBC, the investment banking giant also announced its business unit called Onyx specifically for blockchain and digital currency projects. Takis Georgakopoulos, JPMorgan’s global head of wholesale payments, said Onyx has over 100 dedicated staffers at this point. He further added:

“We are launching Onyx because we believe we are shifting to a period of commercialization of those technologies, moving from research and development to something that can become a real business”.

As the JPM Coin went live on Tuesday, Georgakopoulos reiterated the purpose behind its launch. He also added that the bank focuses on using its native stablecoin for its wholesale payments business. The use of JPM Coin will help the banking giant in mitigating any cross-border inefficiencies that arrive with traditional payments.

Besides, the cross-border settlements times will reduce drastically to a few seconds instead of 1/2 days. Currently, JPMorgan’s whole payments division processes $6 trillion every single day across 100 countries. The use of JPM Coin will eliminate several complexities that arrive with traditional payments.

Rebranding the Interbank Information Network to Liink

Since 2017, JPMorgan has been pilot testing its blockchain-based Interbank Information Network. Today, the network consists of 400 participating banks and big corporations. On Tuesday, JPMorgan said that it will rebrand this network as Liink to validate cross-border payments before they are sent.

The Liink blockchain network will send a digital version of paper checks thereby saving a massive 75% of the costs associated with sending and processing cross-border payments. Onyx CEO Umar Farooq also said that this will also create a model of earning money for network participants. Georgakopoulos further explained it saying:

“We’re talking about hundreds of millions of checks being sent. Using a version of blockchain with the participants being the main issuers of checks and the main operators of lockboxes, it’s possible we can save 75% of the total cost for the industry today, and make checks available in a matter of minutes as opposed to days.”

Note that the commercial launch of Liink might take a few months from now. Georgakopoulos also noted that they are looking at creating new payment rails for central banks across the globe. He added:

“Look at China, you look at Singapore, they’re looking for use cases for digital currencies. If we are able to develop a model that works, we think the probability of adoption becomes very high.”

JPMorgan which has been an early critic of Bitcoin is also slowly warming up to public digital currencies. JPMorgan analysts recently told the Fortune publication that Bitcoin could triple from these levels. The bank’s optimism comes as more big players and financial institutions make fresh investments in Bitcoin.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Crypto Exchange INX Limited to Acquire Broker-Dealer Openfinance

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Investors would be able to efficiently trade security tokens on the Openfinance platform following the acquisition.

On Tuesday, INX Limited issued an official press release stating that it had already signed a term sheet for the acquisition of U.S. broker-dealer OpenFinance. The Securities Investor Protection Corporation and the Financial Industry Regulatory Authority had approved Openfinance as a registered broker-dealer.

Deal between INX and Openfinance to Bolster Capital Raising

INX is not only set to acquire the broker-dealer but also intends to acquire Openfinance’s alternative trading system (ATS), known for facilitating transactions in non-publicly-traded securities. In the deal, the company will benefit from the broker’s systems, client base, digital asset listings, and licenses. Through the acquisition, INX would bolster its position as a novel trading and capital-raising tools provider.

Blockchain Capital, a major industry venture capital firm, together with Lottery.com and Spice V.C., are some of the companies taking part in Openfinance’s listings. Provision of service and operations to Openfinance’s customer base will continue after the acquisition, as assured by INX’s representatives.

INX president and founder Shy Datika assured stakeholders that the new acquisition would boost INX’s leadership position within the digital assets’ ecosystem, saying:

“Digital securities represent a new evolution in traditional capital markets. There are massive benefits of listing and trading digital assets versus traditional equities. Openfinance has pioneered this space and earned the respect of Wall Street, the blockchain community, and U.S. regulators.”

Although there was no disclosure of the terms of the deal, Datika revealed to Reuters in a phone interview yesterday that Openfinance had managed to raise $25 million since 2017, further placing the company’s valuation at a range between $40 million to $70 million.

Investors would be able to efficiently trade security tokens on the Openfinance platform following the acquisition. Openfinance offering – a broker, operating in Chicago and with offices in Pennsylvania and New York – is a blockchain-based clearing and settlement platform that enables companies to use security tokens to raise capital.

INX Aims to Strengthen Its Position in the U.S. Crypto Market

Both accredited and non-accredited investors will trade on the platform 24/7. Custodians, brokerage houses, banks as well as transfer agents are the primary customers that will be transacting on the platform.

Jim Stonebridge, CEO of Openfinance, also praised the new deal that his company had entered with INX. He stated that both Openfinance and INX share a similar vision of the provision of a safe and regulated ecosystem that accommodates listing and trading of various digital assets.

In that perspective, Stonebridge noted:

“We believe that regulatory oversight, combined with liquidity, will make digital assets the financial instrument of choice for companies and investors seeking to access and raise capital. The consolidation of two leading platforms will be the catalyst needed to move this industry forward.”

The latest news concerning the acquisition comes amid INX’s efforts to strengthen its status on regulated activities so as to penetrate through the U.S. crypto market. In August this year, INX sought U.S. Securities and Exchange Commission (SEC) approval and launched the first security token IPO for retail and institutional investors. The Gibraltar-based firm intends to raise $117 million before the year ends by selling its 130 million virtual currency at a price of US$0.90. Finally, if INX manages to secure the broker-dealer license and get SEC’s approval, it intends to launch a crypto derivatives platform for trading swaps, options and futures.

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James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then.
An author with experience writing for tech, digital, and cryptocurrency blogs!



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This Aggregator Promises Users Best Crypto Exchange Rates

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As an exchanger aggregator, BestChange.com pools a wide list of cryptocurrency and e-currency exchanges in order to allow users to select the most suitable exchanger for themselves.

Entering the cryptocurrency market is a challenge for most newbies given the technicalities and the vast number of platforms available to buy these digital tokens. Due to this, most newcomers who want to buy crypto are driven to centralized exchanges, but there are better alternatives to purchase and sell crypto. Finding these alternatives is a challenge which may cause the buyer to spend more than needed on the purchase.

BestChange.com is an exchanger aggregator platform offering users a complete list of e-currency and digital asset exchanges listing the exchange rates of over 250+ cryptocurrencies. Newbie users wanting to find the best exchanges to trade, buy or sell crypto can directly compare exchanges on BestChange.com with a host of differences listed including liquidity, verification process, fees and other features. 

Photo: BestChange.com

Launched in 2007 as an e-money aggregating platform, BestChange.com has grown into one of the largest exchanger aggregators in the crypto space. The platform provides an intuitive user interface allowing the swift conversion, comparison and monitoring of digital currencies on multiple exchanges. 

Challenge for Newcomers in the Crypto Market 

As alluded to earlier, the cryptocurrency space is growing but new users find it challenging to find the best rates on offer. Newcomers in the field are usually disadvantaged with the current setup of exchangers whereby simple issues such as the conversion of crypto to crypto, fiat to crypto, converting digital currencies like PayPal USD to cash, and conversion of international remittances such as Western Union to liquid cash is a problem. 

Furthermore, the high commissions and fees charged by some crypto exchanges for their trading services, geographical and regulatory limitations, and barriers to entry such as verification gives an upper hand to some exchanges.

As an exchanger aggregator, BestChange.com pools a wide list of cryptocurrency and e-currency exchanges in order to allow users to select the most suitable exchanger for themselves.

How does BestChange.com Work?

The platform provides a list of exchangers allowing users to compare prices and trading fees between cryptocurrencies and e-currencies. The platform displays the assets in a table that updates the price rates every 5 to 8 seconds. The table is located on the left side of the main page once you log in with three main options – Table, List and Popular assets.

The table is split into two columns – ‘Give’ and ‘Get’. The Give option allows users to select the currency they want to sell while the Get option is the currency you’ll receive. Let’s say you wish to exchange Ethereum for some PayPal USD, Ethereum will be on the Give side and PayPal USD on the Get side.

Once you select the crypto and e-currency you want, a list of suitable exchangerwith enough liquidity will appear on the right-hand side of the table. Here, the exchangerare listed in order from the best option to the worst ranking several factors including fees, commissions, ease of purchase, and verification. Select your favorable exchanger from this list.

Why BestChange.com? 

The exchanger aggregator field is growing higher by the day with multiple platforms budding in the last few years. BestChange.com boasts of being one of the earliest exchanger aggregators in the world offering a clear and intuitive user interface allowing swift e-currency conversions, comparison and recently adding digital currencies table comparisons from multiple exchangers. 

The platform offers users a catalog of relevant data and information on the different exchangerincluding their trading volume, the volume of a given currency, and the reserve of crypto and fiat currencies that they hold. Notwithstanding, BestChange.com also offers users client reviews on the exchangers.

In case you do not find a pair or the best offers that you had in mind, you can send the BestChange.com team a message and they will notify you once an exchange meets your expectations.

Finally, the platform also includes a calculator that allows users to know the exact price that they will pay in any particular exchange before trading.

Security Question 

As the cryptocurrency market grows, there’s an increasing need to check on the legibility and eligibility of exchange before buying or selling on it. BestChange.com ensures that all exchangers that are placed on its platform are legitimate by carrying out intense due diligence before any listing. 

The intense background checks and high compliance standards maintain trust in the platform ensuring dubious and low standard exchangers are not included.

All in all, with over 13 years of experience in the aggregator field, BestChange.com is platform newbies and newcomers to crypto should consider getting the best exchange rates on their purchases or sales. 

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Andy Watson
Author: Matthias Mende

Tech consultant, entrepreneur, award-winning innovator.



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