Newsletter 21: The Origin Story Part 2
“Overcoming fear and loss. Onward, fresh and learned eyes.” — H
Before we embarked on this project, we were involved in initial coin offerings (ICO). We would spend hours going through whitepapers, putting in the time running through our analysis and getting to know the projects prospects. It was the most popular way to make gains back in the day. We took on this new challenge of identifying among hundreds of projects what were good short and medium term investments.
Entering a market in its infancy armed with little experience was in hindsight not the smartest of strategies. But such is the case when there’s opportunity, and history has taught us that success stories are made of sterner stuff.
We had invested in a score of them. Most were successful, a few were substantial stop losses, and a couple more have yet to be listed on exchanges. Then there were those few in the portfolio that had all the capital raised and still had not delivered. Those were the worst. I mean how can a project raise millions and not have anything to show for it?
This crypto winter has not only added fuel to the skeptics, it has seeded doubt into the global community. For more than a year, it completely crushed the initial world opening to cryptocurrencies and many still reel from its after effects. No doubt then, that you read about Orbyt Tokens and have your concerns. Well that’s why we shared this page in our history with you. Because we know why people invested in projects, how many went all pear-shaped and having to deal with the consequences of those decisions. So if we can learn from those mistakes, take the knowledge that we have now and couple it with that of experience and assessment, we become wiser as such. Once we have learned from the past and cast aside the baggage of failed investments, we can open our eyes and see new opportunities from a fresh perspective.
Some important questions from the public:
Why would the Orbyt Token security token offering (STO) be any different from ICOs?
Why not wait till later to see BitOrb revenues start to increase before getting involved?
Why not purchase tokens after Orbyt Tokens are listed on the spot exchanges?
So let’s address these together. The Orbyt Token is a security token that promises its token holders that any profits (net profit after tax) declared by the entire BitOrb exchange operation is shared to all of them. 20% of the profits has been tokenised to enable token investors who have funded our future marketing and expansion programme to reap rewards for their contribution. Profit share that would otherwise be unavailable anywhere else. The Orbyt Token offers benefits to investors that include trading fee discount, access to advanced trading tools, and profit share paid out in Bitcoin. As far as we know, and we’ve been around quite a bit in the crypto scene, this combination is a world’s first.
So yes, the Orbyt Token sounds interesting. That said, those who have heard similar stories about exchanges sharing revenue during the ICO days (they end up just distributing more of their tokens or other tokens with low liquidity) would be skeptical of exchange performances since there are up to a thousand crypto exchanges and many hundreds have failed since 2018. There are however, distinct differences.
BitOrb is a crypto derivatives exchange. There are only a handful of derivatives-focused exchanges in the world. Especially less so for those that offer high leverage. Whilst there are an increasing number of hybrid spot exchanges that offer margin trading as well, their systems are not built to handle high-frequency trading that caters to high leverage and very high volume trading. Some spot exchanges can offer up to 20x leverage. BitOrb offers 100x leverage. Some exchanges we have identified as key competitors likely handle 500–1000 matching order transactions in a second. BitOrb can handle 10,000–100,000 matching order transactions per second. In addition, unlike spot exchanges that are very much dependent on a bull market, derivatives perform two functions (hedging a net wealth position, and trading) that still generate trading volume in a bear market. The daily trading volume for the largest market leader in 2018 averaged USD 2–4 billion per day, with an annual volume that surpassed USD 1 trillion. So when compared to the spot exchange ICOs of the past (where the top 20 spot exchanges volume was not larger than even one derivatives exchange) the BitOrb derivatives exchange is far more likely to generate revenues in a market that is still young and with massive industry potential.
The crypto community are in the “post”-ICO era. Those remaining have experienced the detrimental effects of irresponsible ICO promoters that either abandoned their projects or have delayed delivery of their platforms or products to such an extent, the investors have yet to see even the tokens issued over a year later. Such opportunity costs of having funds locked in for months on end has raised many concerns about new investment projects.
For BitOrb and its Orbyt Token, there is a difference to its proposition: For one, as an investor you can communicate directly with the BitOrb management and get to know us. Second, it is a chance for investors to gain profit share in a derivatives exchange. No such opportunity exists right now that is transparent and simple; the auditors for BitOrb accounts will be announced soon, and they are one of the top firms in the world. Third, the BitOrb exchange will go live at the end of this year. We will deliver on our promise of launching our exchange by the end of 2019.
The initial phase is to build on our user base and market ourselves as a superior choice for a derivatives platform. In 2020, we plan to declare profit share. Once the finance department and audit services are able to get a good handle on the accounts, we would like to offer profit share on a more regular basis, and if possible, as frequent as a monthly declaration. So with all this going on, and our commitment to building the user base and in the interest of protecting investors interest, we plan to list the Orbyt Token on secondary markets only after we have generated revenues. Since Orbyt Tokens are securitised by profit share, an expected declaration would indicate token prices in future would be at an expected fair value. The difference is, only at this time, is there opportunity to get bonuses. For those who see a long term investment with BitOrb, they can see that earning profit share is better than what the conventional financial system offers today. Thus far, our investors see long term gains in prices as the bonus and not the gain, and see the bonus received in profit share as the gain.
Although we are unable to advise you on your investments, but you are able to research as much as you can on the future of cryptocurrencies, the financial tools available such as futures, options and warrants, and the financial system. You may come to the same conclusion that BitOrb is indeed an investment worth looking at for now and the future.
Investor Updates:
We’re pleased to announce that there has been an increasing interest from parties wanting to invest USD 10,000 and above. Thank you, and we look forward to meeting your expectations.
Latest News:
We have been given a STABLE rating on icorating.com! This is one of the best rating and review sites in industry. They have taken the initiative to see our demo and will review the current rating once we have opened the BitOrb exchange testnet for the public to try. This site will continue to monitor our progress and will change the rating appropriately.
We managed to be in the top 15% of new projects reviewed by icorating.com. As we continue our exchange development and the promotion of our STO, we will strive to raise the rating higher in the near future.
That’s it for now and thank you so much for investing in Orbyt Tokens!
For more information, visit BitOrb.com or find us on social media
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This blog was originally posted on https://www.bitorb.com/newsletter-21-the-origin-story-part-2/
