listing, price, exchanges, market condition.
In this issue, we will analyze the issues of the exchange, the search site, criteria, our experience, what we are guided by, what determines the price on the exchange, what the market is at the moment, what to expect and much more.
The material is large but meaningful. So take 10 minutes of your attention to get useful information and be up to date.
Table of contents
- Experience: Trust, but verify
- How did we choose and choose trading platforms for Tkeycoin now?
- Аbout the state of the market
- What will the price on the stock exchange depend on?
- A bad example of a listing on an exchange. What not to do?
- What kind of market entry does Tkeycoin require and why are we preparing for it?
- Why is the company tremulously to this issue?
At the beginning of this year, our Tkeycoin team had a great understanding of the market from the technical and commercial side, but we had no idea at all how the cryptocurrency exchange market works.
One thing ICO, another thing exchange-then, it seemed to us. Exchange-a trading platform, which thousands, and sometimes millions of people trust their money. Such sites should have a positive reputation in the market and at least be controlled.
The first time we were puzzled by the issue of listing on the stock exchange, we were given recommendations by “high-ranking” people. So let’s say they did us a “disservice” by offering the EXMO platform. We have trusted. Given who the recommendations were, we had no doubts. But experience shows that Moscow is a big city, a city of opportunities and “specialists” who want to” grab “ these opportunities 🙂
The first situation with the exchange reminded us of a kind of ”setup“ for further promotion of the case at comrade major. The scheme of the series: get user’s money — and we’ll find out what to do with them, and all claims “will put that together in business.”
But the show didn’t last long. The security service conducted an internal investigation, which revealed some serious violations related to its officials and the company’s activities in the Czech Republic, Cyprus, the facts of participation in fraudulent schemes on the territory of Moscow.
Such information confirms the unreliability of the trading platform. The cryptocurrency exchange at any time can evaporate with cash. As long as the “Laundry” system works — the exchange exists, but the question is how long it will exist? Nevertheless, the facts of theft of funds from users ‘ wallets with the participation of exchange administrators also take place.
After such a situation, broken expectations of the company and users, we decided to ask for help from professionals. When you seek the services of a lawyer, you trust the opinion of a professional and listen to his recommendations. In the case of the BitForex exchange, we also listened to the opinion of experts, but, as time has shown, we did it in vain.
It is not necessary to go far, the case with the IDAX exchange speaks volumes. By the way, we it is also advised various experts.
After the events and experience, we realized that a very thorough and comprehensive approach to the selection of the exchange is required. It is necessary to pay attention to every detail.
In the first 2 weeks, we carried out work on the primary analysis of stock exchanges, as well as engaged in checking reports and various ratings and confirmation of trading volume on a particular exchange.
In a short period, a lot of work has been done, which is incomparable with the previous searches for trading platforms. The analysis and audit of transparency ratings were carried out, trading indicators, volumes, activity of platforms, interest of community and professional traders were checked.
95% of the declared trading volume is invalid, only 10 exchanges have actual real trading volume. The correlation between transparency and invalid volumes, as well as with falsified activity, was carried out.
These figures cannot fail to shock. You see, 95, ninety-five percent of the trades are screwed up. The classic stock market does not allow this.
The first list of exchanges to listing TKEY was as follows:
All of the listed exchanges have a transparency rating of A and A+.
It is worth paying attention not only to the confirmed trading volume, but also to the number of projects. A huge number of exchange are located on Islands, for example in Belize or in some other offshore.
For example, Kraken-based in the United States. The States actively regulate the activities associated with the digital asset. At the same time, if you look at how the States would not complain in terms of regulation, then their territory is an open platform for development. Follow the rules, you will be given to organize payments in retail outlets and other places.
Kraken is a popular exchange, as evidenced not only by the activity of traders, but also by the statistics of visits to the site — https://www.similarweb.com/website/kraken.com. Exchange to care about the confidentiality of information and gpg keys for correspondence is a normal practice, even such a small nuance says a lot.
Poloniex-founded in 2014, and received the support of a major American company Circle in 2018. Also located in the United States.
We could include in the list and CoinBase, but alas with Russia they do not work.
Bithumb — South Korea. In Korea, the exchange’s website ranks 323rd in terms of traffic. The Korean crypto market is considered one of the most active, so the placement on this exchange +100500 Korean capital and local traders.
Gate.io — Chinese exchange, which began its journey in 2012 under the name Bter. She was one of the first who started working with Fiat currencies. Due to restrictions by regulators of the PRC, it was transformed into an exchange Gate.io.
Each of these exchanges has its advantages, the main thing is that the platforms officially confirm their trading volume and have great prospects in the future. For example, Binance is an exchange that started abruptly and outstripped the popularity and activity of already hardened representatives of this market.
In addition to the advantages of great trading activity, almost each of these exchanges is a group of companies, such as Circle or Bithumb Global. Each of them develops different products in the field of cryptocurrencies, which further increases the stability of the exchange.
Standard to which we have paid attention:
- Confirmed trading volume;
- Cryptocurrency pairs and exchange instruments;
- Legal component (affiliates, the scheme of work and cash flow);
- Information background;
- The activity of users and traders;
- Company strategies: future prospects of the site;
- Availability of other directions of the company.
- Every detail plays a role.
About the state of the market
The user judges from his point of view. If the exchange, then a reputable company. It’s much more complicated.
There are a huge number of different cryptocurrency exchanges on the market and each of them speaks about itself “especially”, and this is normal from the position, but the numbers say the opposite. If you conduct a normal analysis, look at the figures with different eyes, it will become clear that the volume and activity of users are at a minimum and inferior to some cryptocurrency projects, not to mention stock exchanges.
The current problem of the market is its “dampness” and lack of regulation. It is clear that the cryptocurrency was created on the slogan of freedom, but at least the authors of the projects should understand the business components and be prudent. The vast majority of fraudulent projects interfere with the development of really worthwhile teams, which are few.
In Russia, the investment market is poorly developed, only in 2016–2017, the market volume was 1% when the Deposit market is thousands of times larger. Banks control funds, preventing the investment market from developing.
Due to the limited amount of information, part of the community has little experience in this area, so the user draws a classic parallel either with ready-made products, such as IBM or with projects that are on the market since 2012–2015.
This situation says a lot, classic investments suffer because of the low involvement of users, as well as the lack of understanding of the simple postulates of this market.
What can we say about the crypto-market, which broke into the “HYIP” in 2017, and we knew very little about it. Until that time, projects also experienced the path of formation, the launch of the blockchain, problems with wallets, failures in networks. They broke deadlines. For example — Ethereum carried out some updates with delays of 6–12 months.
To understand, you have to be involved in the processes. But, we do not require this from users, the work is in real-time when you all watch the UPS and downs. Mistakes, failures, missed deadlines. And this is normal, given the timing of implementation.
It was possible to go by launching a coin based on the ERC-20 template, then go to the exchange and start trading empty. The most interesting thing is that in this situation there would be no questions about legality. However, we observe this market from the inside of the business, realizing that there are a lot of fraudulent schemes due to the lack of regulation and rapid benefits.
The main factor in the formation of the asset price is the availability of supply and demand. If demand exceeds supply, the asset will rise in price. Conversely, if supply exceeds demand, the asset will fall.
Each factor is tied together: Project-Exchange, Exchange-Project.
Important synergy effect-enhancing the effect of the interaction of two or more factors.
1. Active traders, not just users, but professional traders. The exchange should provide excellent conditions for traders and give them away to earn money. A trader should trust the exchange, it follows that it does not make sense to look for traders on the exchange with a “wound” trading volume, they simply do not exist.
2. If the exchange has an active community and professional traders, the project receives an additional influx of stakeholders.
3. The project has its own interested community, some of which “hold” funds on a long-term basis, some sell at the first possible growth, someone “merges” assets at the very start and so on.
Accordingly, interested parties are required to create a balanced supply and demand. Just to help comes the active community of the trading platform, which sees the prospects and the opportunity to earn, both in the fall and on the growth of assets.
4. The company, in turn, carries out active marketing of the company as on the stock exchange and outside the exchange, creating a strong demand for the asset.
5. In addition to the marketing side of the project requires active work in terms of the dynamics of development and cooperation with various partner companies. At least you need a background, the TKey project certainly has it. But, it is required to enter the market prepared.
The current price is TKEY $1, the market perceives the price of $0.7 as fair. The news comes out that TKEY has launched mobile wallets and signed a contract to launch the platform in the UK, due to which there will be a three-fold increase in the company’s profits.
For assets, this is very positive fundamental news, so traders will try to buy them as cheaply as possible, and sellers — as expensive as possible to sell. Demand exceeds supply and buyers begin to buy at market prices, and sellers put up bids for sale at higher prices. When negative news comes out, the market reaction will be the opposite: the price will begin to fall.
Issue and number of assets in circulation
Yes, these 2 factors also have an impact.
The number of assets in circulation is the total number of assets issued by the company, and the number of assets in free circulation shows how many assets are actually available for trading. Free float assets can be freely traded on the open market at any time. When news comes out or data changes for fundamental analysis, the number of assets offered for free buying/selling may increase or decrease, as each private investor or Fund applies a set of its own criteria, acting as a trading signal, to enter and exit positions.
However, traders can roughly determine the range of values available for trading assets. If there are not many assets in free circulation, the supply is low, and less demand is required to push the price up. Conversely, if a company has a lot of assets in free circulation, the offer is large. Consequently, it will take considerable effort by buyers to significantly affect the price.
At TKEY the emission cannot exceed more than 147 000 000. Initially, the mathematical justification for this amount of TKEY was an approximate correspondence of the rate of birth of gold as opposed to the need of mankind for this gold. Our TKEY emission model consists of key reserve release factors and a cap on aggregate supply. Limited and properly controlled release of reserves increases the chances of slow demand growth driving up the price of a cryptocurrency.
The network follows the clear rules of the P2P network, determining with the help of algorithms how many and at what frequency coins should appear. Tkeycoin is created every time a user finds a new block. The number of released TKEY per block decreases geometrically, with a reduction of ~50% every 4 years. As a result, the algorithm has a well-defined schedule according to which the total number of existing TKEY will never be more than 147,000,000 TKEY.
The necessary mass of the TKEY cryptocurrency is regulated, including by the community itself, or rather using mining. If Tkeycoin at a time produced more than the market needs, the value of the coin decreases and the power of the network decreases, because some of the miners leave, due to the decrease in the profitability of TKEY production, which, in turn, entails a decrease in the production of TKEY to the required values. This situation persists until the mass of Tkeycoin on the market becomes insufficient to meet the purchasing power of users.
What you need to know about crypto assets?
Cryptocurrencies are investments with great price variability, the level of return varies from 5% to 500% in a short period. Now there are more than 3200 different digital assets on the market (this is a floating figure”+” “ -”), but most of the teams that present their projects and developments to the public are at the idea stage and do not have a long-term development strategy. And some are simply fraudulent.
In the Forex markets, you can play on the dollar with a minimum difference in price, while earning good money. Here the investor always has big risks. The greater the risk, the greater the return. These are the usual fundamentals of the market. Cryptocurrency prices are extremely volatile and can change under the influence of external factors such as financial news, legislative decisions or political events. Due to the high volatility of the price of digital currencies, time is crucial, the final rate may differ in both positive and negative direction.
“HYIP” is declining, the market is evolving, it will take 1–2 years, empty projects without real benefit will begin to die out, the cost will fall. The time has passed when you release a token to the market and get 1000x.” ©
- Choose an exchange without traders;
- To release a billion of worthless assets;
- Exit without scaling the product;
- Leave without product.
As mentioned above, the “HYIP” market subsides, traders look towards liquid assets, and if they choose new ones, they do it based on the analysis. If the project is thinking about the future, then in no case will it enter the market “empty” or “useless”.
If you enter the exchange market, then enter after the updates.
Now we are actively working on the launch of a new blockchain core TKEY 2.0, which will open new doors for us and for most companies planning to use new technologies to optimize business tasks. Read more about our multiblockchain solutions on our official website.
As they say, what is the engine for the user? Without a cool framework, it’s nothing. At the moment, we are already working on a complete change in the architecture of the Desktop application Tkeycoin Core, as well as preparing the mobile application for the official release.
Everything has to work like clockwork. Yes, it’s time to get rid of “ junk” and move to fresh interfaces with stable architecture.
What’s all this about? Based on all of the above information, there is an objective picture:
a) The exit is carried out prepared.
b) The project has prepared 2–3 “trump cards” in the form of products and information guides for the market.
c) The Listing takes place on an exchange with a high trading volume and an active community.
It’s very simple: “3 because” that explains everything:
- Because we do not care about our investors and the time we spent on the development of the project.
- Because developing the project, in addition to investors, the company gets a big “jackpot”, for which it is worth both waiting and counting every step. And do not rush headlong, throwing the asset in the “trash”, because someone wants it.
- Because we think about the future, both our own and Yours. We need to reduce the number of risks, not create them.
And finally, every successful company at the start has experienced enough victories and defeats. Today, large crypto-projects still face various difficulties, which are experienced together with the community. Small projects, run ICO, collect money, go to empty exchanges because they are not interested in the fate of users, the cache is received, the Treasury is replenished.
Learn to compare and think objectively. All patients and productive working week.
Veni, vidi, vici!