QRX Token Value
Part 1: the First Professional Cryptocurrency Exchange and its CEX-segment
Qurrex is the first hybrid cryptocurrency exchange that combines the functionality of both the centralized exchange node and the decentralized nodes.
Our mission is to provide access to cryptocurrency markets for over 200 million regular users and 20 thousand professionals. It is expected that during its operation the exchange will reach the turnover of 10 billion USD a day.
Qurrex is called professional due to the fact that it is relieved of “teething troubles” of the present days crypto trading. It provides all the necessary social, automation, and robotic trading tools for the retail market.
One of the essential parts of Qurrex crypto exchange is the QRX token, which allows all the infrastructure elements to function and players to interact. Developers made sure that the token will be in high demand from a wide range of buyers, during the operation a high market price will be reached as well.
It is necessary to say that Qurrex hybrid cryptocurrency exchange combines three trading systems:
- Professional centralized cryptocurrency exchange;
- Professional decentralized cryptocurrency exchange for liquidity providers, which includes thousands of mini-exchanges;
- Third generation trading terminal.
In this post we will try to highlight the value of the token for the professional centralized cryptocurrency exchange.
A discount or rather a cash-back. According to plan, 20% of the exchange income from trade commission fees will be distributed among the whole pool of QRX tokens. It will be distributed as a discount/cash-back. This possibility will be useful for those QRX exchange users who may wish to cut their expenses related to their work at the exchange.
The principle of distribution is easy to understand via an example. If the commission income of the exchange is $100, $20 of it will be evenly distributed among 100 tokens. Thus, a holder of one token receives a 20 cents discount.
For the exchange 20% of the commission fees is approximately half of net profit. According to Bloomberg, exchange commission of the World’s top-10 cryptocurrency exchanges constitutes up to $3 million a day. Which is approximately $1 billion a year.
As for Qurrex crypto exchange, the project hard cap is approximately $55 million. If we consider the commission fee and the estimated assets turnover, one can assume the potential token pay-back period within 5–12 months range. But in fact this period is slightly shorter, since Qurrex will work with the professional players, whose capabilities are higher compared to those of non-professional.
It is possible to anticipate the retail market economy estimates. In the current cryptonomy there are around 10 million users. Daily turnover equivalent to one user is approximately $1,000-$2,000. Which is $350–750 thousand a year. A regular user’s exchange commission fees expenses make $600-$1200 a year. And in order to allow such a user to get an approximate expenses refund of around $1200 a year, they must make a single deposit of around 600–1,200 QRX tokens. The market is growing, and the user may need an additional tokens deposit, but in the amount not exceeding 300 QRX.
Calculation shows that at the emission of 70 million QRX tokens the total amount of users with a stack of 1,200 QRX tokens will be limited to 58,333. For the 10 million cryptocurrency exchange users it constitutes only 0.6%, or every 180th person. If we consider 200 million users of conventional markets it is even less — 0.03%, or every 3600th user.
But the main beneficiary of the discount/cash-back will of course be the institutional players in the form of FX and traditional brokers, trading companies, liquidity providers, banks and other companies with high trade turnover volume.
We can demonstrate the possible discount by calculating an average 10,000 clients broker’s commission fee. Say, such a broker pays $6–12 million as exchange commission fees every year. Therefore, possession of 1 million QRX tokens will allow them to save $1–4 million every year. Which is 30–100% of net profit. And since for various level players the crypto market will long be considered one of the segments with highest margin, the tools which allow to make savings will become a strategic competitive advantage for those who work with Qurrex.
The value of QRX token will be even higher if we consider the possibility of financial lease. The point is that Qurrex exchange specialized trading section features provide the possibility to operate the QRX token derivative financial lease with a floating and fixed rate in order to allow the QRX token owner to make an interest rate profit nominated in highly liquid currencies, such as USD, EUR, BTC, ETH, QRX. The lessee of the QRX tokens gets a trade commission fee discount/cash-back for a certain period of time.
This allows the owners of QRX tokens who aren’t active traders to benefit from them by getting passive income thanks to secured transfer of tokens for temporary use by a third party. So, the “lease” cost is approximately 50% (at least) of the redistributed discount/cash-back for the lease period.
QRX token can as well be used as:
• An exchange tool — QRX quotes will be listed for the key crypto and fiat pairs. Therefore, the token acquires the attribute of high liquidity market goods, with a market price that is subject to a change due to exchange rate gains. This function will primarily be demanded by exchange speculators such as professional traders, hedge funds, investment banks, trading companies, etc. who profit off of expectations of the economic agents (volatility).
• A payment instrument. QRX token will become a payment instrument for any services of Qurrex exchange at the market (current exchange rate) price, and in this case we expect demand growth from tokens emitters (ICO) and HFT traders (co-location zone);
Fundamental factors that influence the market price determination of the token are the trading volume and trading exchange fee, as well as market agents’ expectations of the parameter fluctuations in future. In developers’ opinion, Qurrex will make it to the list of top-3 cryptocurrency exchanges, and it is just a matter of time.
More info on Qurrex and what we stand for:
