To understand the role in which STRX will serve as the native currency within our eco-system, it is important to understand the
14 Nov 2022, 16:02
To understand the role in which STRX will serve as the native currency within our eco-system, it is important to understand the three phases of development we have planned.
Phase 1 – Products (current phase)
- StrikeX Wallet
- TradeX
- TradeStrike
During phase 1 STRX remains a BSC token. Utility during this phase will be two-fold, first through discounted trading fees in our wallet based on the amount of STRX held. Secondly, and more importantly, upon launch of our tokenised asset trading platform (TradeStrike) STRX will be available as a base pair for the trading of multiple assets e.g BTC/STRX or APPL/STRX (There is an ongoing discussion about use of stablecoins to negate the potential volatility of this method of trading.)
Phase 2 – The development of our own chain.
Whilst we are firm believers in the BSC, it soon became apparent that to best serve our eco-system , a blockchain created in our own design was required. Building our own chain tailored to existing products not only allows for deeper integration throughout but also keeps revenue generated by way of gas fees within the eco-system.
During this second phase STRX becomes a native utility token like those of which many will be familiar with, such as ETH or BNB.
Phase – 3 Stock token bridge.
The missing piece of the puzzle to successfully bridge publicly traded stocks with our trading platform, on our own chain, is the development of our stock token bridge. The stock token bridge will automate transactions to & from the stock exchange by minting/burning stock tokens. This opens an automated on-chain path between our eco-system & the trillions of dollars of capital in the equity markets. Bringing this level of potential traffic to our own chain of which STRX will remain the native currency is what will give STRX unrivalled utility, the likes of which has yet to be seen in the crypto space.
Same news in other sources
114 Nov 2022, 16:03
Understanding tokenised stocks.**
Tokenised stocks are digital replicas of public stocks that can be traded on the blockchain. The types of tokenised stocks available vary depending on what (if anything) they are collateralised by. A stock token backed by a cryptocurrency is referred to as a synthetic stock, whereas true tokenised stocks are backed by a real-world asset traded on the cash markets. At StrikeX we focus on true asset-backed tokenised stocks.
To create a tokenised stock, it is not as simple as minting a token and issuing it to an exchange, an automated process bridging the blockchain to the stock exchange is required.
As you can see in the simplified stock bridge model below, there are several steps in order to deliver a fully compliant, fully collateralised stock token to the end user. This process can involve one or several parties, dependant on the licences held to carry out a particular step. This process is completely automated using smart contracts.
24/7 Trading
One revolutionary benefit of bringing the world’s stock markets on chain is the ability for the user to buy/sell their stock tokens even when the stock markets are closed. The price quoted out of hours for the stock token is dependent on three factors: demand, latency & liquidity.
*For example, if Tesla releases positive earnings after the stock market is closed, and a user is expecting the TSLA stock price to surge on market open, they could choose to purchase TSLA stock tokens out of hours. However, the price they are quoted on the exchange could be higher than the real asset's closing price if there is an increased demand on the exchange. The user would have to base their decision to purchase on the price they receive vs their expectation of the real-world asset’s future market open price. *
Market logic dictates that should the stock token price stray too far from the underlying asset’s true value, it will snap back in line closer to it when the stock markets open.
Understanding tokenised stocks. Tokenised stocks are digital replicas of public stocks that can be traded on the blockchain.
Understanding tokenised stocks.**
Tokenised stocks are digital replicas of public stocks that can be traded on the blockchain. The types of tokenised stocks available vary depending on what (if anything) they are collateralised by. A stock token backed by a cryptocurrency is referred to as a synthetic stock, whereas true tokenised stocks are backed by a real-world asset traded on the cash markets. At StrikeX we focus on true asset-backed tokenised stocks.
To create a tokenised stock, it is not as simple as minting a token and issuing it to an exchange, an automated process bridging the blockchain to the stock exchange is required.
As you can see in the simplified stock bridge model below, there are several steps in order to deliver a fully compliant, fully collateralised stock token to the end user. This process can involve one or several parties, dependant on the licences held to carry out a particular step. This process is completely automated using smart contracts.
24/7 Trading
One revolutionary benefit of bringing the world’s stock markets on chain is the ability for the user to buy/sell their stock tokens even when the stock markets are closed. The price quoted out of hours for the stock token is dependent on three factors: demand, latency & liquidity.
*For example, if Tesla releases positive earnings after the stock market is closed, and a user is expecting the TSLA stock price to surge on market open, they could choose to purchase TSLA stock tokens out of hours. However, the price they are quoted on the exchange could be higher than the real asset's closing price if there is an increased demand on the exchange. The user would have to base their decision to purchase on the price they receive vs their expectation of the real-world asset’s future market open price. *
Market logic dictates that should the stock token price stray too far from the underlying asset’s true value, it will snap back in line closer to it when the stock markets open.