Multi-currency and spot/futures exchange BTSE plans to host the first-ever native exchange token sale based on a Bitcoin (BTC) sidechain.
The exchange seeks to raise $50 million, Finance Magnates reports on Dec. 10, with minimum investments set at $150,000.
BTSE’s choice to host its offering on a Bitcoin sidechain sets it apart from other exchange tokens, which largely use either the Ethereum network or an in-house blockchain.
Specifically, BTSE will release its token on the Liquid Network: a federated sidechain on the Bitcoin blockchain that functions as a settlement and payments network for crypto exchanges, market makers, brokers and other financial institutions.
BTSE’s pitch deck reveals that the exchange will launch the token sale in March 2020, selling tokens at a price of $1 each, with tiered discounts and vesting options.
BTSE eyes expansion into OTC and mining markets
The exchange indicates it will use the funds raised to develop its platform and liquidity depth, expand into lending, over-the-counter (OTC) and mining markets, and to drive user growth in order to increase its overall revenue.
At present, BTSE’s revenue model depends on platform and debit card fees, OTC margins, lending and mining — the latter of which generates an expected return of 30% per annum, the document reveals. To manage circulation and scarcity, BTSE will tie its token into a buyback scheme, whereby:
“We take 30% of all revenue streams every month allocated to a liquidity pool that is then used to buy back tokens at market price until the supply has been halved.”
The pitch deck indicates that, aside from its buyback system, token scarcity will be encouraged by offering token holders incentives such as interest-bearing accounts, lower fees, and higher rebates.
Privacy features
The Liquid Network, developed by blockchain infrastructure firm Blockstream, supports privacy features such as Confidential Transactions as well as atomic swaps, which enable the exchange of one token for another without the need for a trusted third party or centralized exchange infrastructure.
As reported earlier this fall, BTSE launched Monero (XMR) futures trading, making it one of the first and only exchanges offering futures contracts on the privacy-focused altcoin.
The exchange is licensed by the Department of Economic Development, Government of Dubai and operates under the regulatory oversight of the Central Bank of United Arab Emirates, according to its website.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.