The Problem
The volume of cryptocurrencies launched in 2017 was unprecedented. While it has shown the world that cryptocurrencies and blockchain technology will change commerce, the high volume has also led to massive fragmentation and consumer confusion. Imagine a plethora of over 100 active exchanges with no universal, single point of access for institutions and individual users seeking to trade. That is the paradigm we are headed for unless something changes.
The Epiphany
Market competition is typically a good thing in that it allows consumers to choose which options represent the best match for their needs. However, in this case, an unprecedented influx of new cryptocurrency exchanges has created hesitancy among investors as their experience has become a highly inefficient, fractured trading process - featuring dozens of varying API’s, basic web pages subject to phishing and redirect attacks, limited order types and less than stellar infrastructure as compared to the common standards of financial systems.
The result of all of this has been a daunting scenario for investment traders: administrative snafus involving account setup and access; thin liquidity; slow execution speeds; and inconsistent trade pricing.
The Solution
In an attempt to address these issues, technology provider XTRADE.IO (XTRD), is creating a stand-alone platform with the goal of establishing a proprietary trading system for cryptocurrencies that could serve as a one-stop-shop for large traders and funds.bLaunched in August 2017, XTRADE.IO has been building out its product offerings and value proposition on the heels of a token campaign in early 2018.
The company’s flagship innovation is a universal API designed to connect the current community of exchanges, known as a FIX API (utilizing the Financial Information eXchange protocol.) This API will standardize industry technology with the same rules that have driven the NYSE and NASDAQ for over 25 years.
As a solution to the issues current institutions and investors face, XTRADE.IO will deliver basic access to every market and asset from a singular point, which will radically improve the ability to execute trades. It represents an on-ramp for large institutions to easily access markets via a familiar and proven technology, creating real value for investors seeking to stay up-to-date with trading data and market information in real time.
XTRADE.IO’s system simultaneously routes orders to several exchanges and executes them in a small amount of time while minimizing slippage. By providing SMART routing and high speed Direct Market Access as well as splitting the order into “parent” and “child” orders, XTRADE.IO estimates that execution times and slippage costs can be reduced by 96 percent.
These solutions are primarily targeted toward large players including institutions, hedge funds and quantitative firms seeking to get engaged in cryptocurrency trading. XTRADE.IO will allow them to trade in large volumes, bringing liquidity to thin markets. It will also lead to the stabilization of prices resulting in lower transactions costs for all parties, both big and small.
The Forward Vision
As with any innovative solution in a largely nascent space, a huge learning curve can been expected. Fortunately the team at XTRADE.IO has extensive experience developing trading platforms from the ground up, including solutions addressing market data, execution, clearing, high frequency trading and DMA trading infrastructure. XTRADE.IO principals and advisors have worked with assets ranging from equities and structured products to FX and derivatives, in trading firms and large financial institutions worldwide including Goldman Sachs, Deutsche Bank, Lehman Brothers, and JP Morgan.
In terms of the roadmap ahead, XTRADE.IO’s goal is to release alpha and beta versions of the trading platform launched by Q2 and Q3, respectively. By the end of 2018, the project should be fully operational. The FIX API is already in production, and the token generation event is scheduled to take place inQ1 of 2018.
“At XTRADE.IO we pride ourselves on taking a pragmatic approach,” said Xtrade co-founder Alexander Kravets. “We're not here to build an AI/VR insert ‘buzzword’ company or coin. We're looking to apply our entire career of industry experience as active investors and financial operators to solve pressing problems with proven technology that has worked for the biggest financial institutions in the world in the last 25 years.”