XChangeRate Overview (MaTa)
In the past few weeks XchangeRate developers have been hard at work getting our latest upgrade ready for the crypto token economy. Previously we had developed a platform that helps traders trade intelligently as well as a robot that can trade round the clock in different market conditions. Now we are bringing more people into our ecosystem with our all new Market Maker/Taker (MaTa).
In the next few posts, we will be introducing you to XchangeRate MaTa — an all inclusive platform that serves all stakeholders in a token economy. We will dive into the concept gradually, and slowly unveil your importance and how you benefit from the set up.
The distribution chain in a traditional setting parallels the token economy in a peculiar way. While demand is what drives the distribution chain, use case is the primary driver of the token economy. However, the peculiarity of the token economy is the finiteness of the tokens which makes it worthy of note.
Exchanges, Token Owners, Market Makers and Traders are the main players in the token economy; they ensure the free flow of tokens down to where it serves its use case. These players fulfil their roles in ensuring liquidity.
Exchanges represent the market place. They provide the framework, platform and conditions that govern and facilitate trading. A simple principle of trading on exchanges is that the lowest ask is closest to the BUY option while the highest bid is always next to the SELL option. This principle makes the execution of demand and supply orders predictable from a logical perspective as well as orderly and fair, for the most part.
Tokens represent an offering or a project. The finite nature plotted against market demand for a token impacts on its value. The use case(s) of a token describes its real life application. More simply put, when a token is limited in number and high in demand, the prices tend to go up.
Market Makers: At the early stage of a project where adoption is still in its infancy or when a token is newly listed on an exchange, the role of the market maker seems indispensable. The market maker undertakes to buy or sell tokens to anyone that approaches the exchange at all times. This ensures liquidity and maintains the relationship between the token owner and the exchange in good standing.
Traders function like retailers in a traditional marketplace because they buy for the purpose of making profit.
Subscribers or Users: The use case (main purpose) for the token is its main driver. The real life application of the project in which the token is used attracts and retains users who form the bedrock of the whole economy, Growth in the user base of a token impacts the whole token economy significantly.
In our next post, we will discuss “XchangeRate Approach to Token Liquidity” Stay tuned!
