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All about Europe’s Premier Exchange: Eterbase

ETERBASE — Initial Exchange Offerings and Launchpad

First-wave exchanges like Bitfinex, Bittrex, and Binance are failing in several key areas. Often times systems cannot keep up with demand, offer slow trade execution, poor customer service and lack proper regulatory compliance. European-based Eterbase aims to move beyond these issues…and is set to launch very soon! Let’s dig deeper into what makes this second-wave exchange tick.

WEBSITE | WHITEPAPER | EXPLORER | TELEGRAM | GITHUB | CMC

Eterbase — a project overview

Curious to see what the premier European exchange is all about, and is going to be? You’re at the right address then. Let’s skip the whitepaper, telegram, and all medium posts. You will find everything you need to know in here, packaged in a convenient overview designed just for you. So let’s not further dilly-dally about the “why” and “how” of it all and directly go into detail about what this project is all about!

Eterbase exists of two parts, the exchange, and the token. We’ll discuss both.

Disclaimer: the main purpose of this article is to inform and educate, not to promote. This should not be considered investment advice.

Table of contents

PART 1: The exchange
· Adoption through regulation
· Negative trading fees
· IBAN and FIAT integration
· Core engine specs
· Initial exchange offerings and launchpad
· …and more!

PART 2: The token
· From ERC223…
· …to Eterbase Core
· Tokenomics

PART 3: Should you invest in it?
· Feature comparison

PART 1: The exchange

Eterbase is a high-performance scalable centralized exchange hosted in Europe. While centralization is often times frowned upon within the wider blockchain community — there are several key benefits of having a centralized exchange while staying true to the ideals of decentralization.

Decentralized exchanges often lack the capacity of high-volume trading and most importantly lack regulatory compliance. Which means bad actors can profit from decentralized exchanges as well. Most of you know the hassle of trading on IDEX by now. It has poor UI, is unacceptably slow and frequently fails to keep up in periods of high demand. Speed should not have to suffer for safety. A trustworthy centralized exchange can do both.

You may have already noticed there is a need for regulation in the cryptocurrency space as well. Calls for regulations echoes across Europe, with both the European Union, high-ranking ministers and board members of larger banks in Europe publicly crying wolf. Market manipulation, operational and security failures, and liability gaps are one of several key issues. A much-needed paradigm shift needs to be occurring in today’s market should we aim to pave the way for mass adoption. Eterbase has been designed with both the customer and the future in mind.

While there are several features worthy of discussion, I consider the following to be the most important and relevant for you from an investor’s point of view.

Adoption through regulation

Most exchanges lack licenses and regulations, which makes them untrustworthy at best. Hence why many exchanges are hosted in legally grey areas of jurisdiction. Having an exchange backed by licenses and regulation provided through a national government aims to solve a number of these trust issues.

Eterbase adheres to comply with all laws and regulations within the EU, such as GDPR and AMLD4/AMLD5. Full licensing and registration to AMLD5 will be done by the Ministry of Finance of Slovakia and National bank of Slovakia as soon as the transposition of the EU directive is completed in the country’s national legislation (2020).

AMLD stands for Anti-Money Laundering Directive and is a set of measures aimed at minimizing the laundering of money for criminal purposes. Member states of the EU are obliged to comply with AMLD-4 (the fourth directive). However, with AMLD-5 massive legislative changes are made to allow cryptocurrencies to prosper as well. Under AMLD-5 virtual currencies can be seen as legal tender.

Important changes under AMLD-5 is a further reduction of anonymity on AMLD-5 compliant exchanges. For those that view this development with apprehension, remember you can not have adoption without regulation.

Eterbase is pre-emptively complying with AMLD-5 before the legislative changes become an obligation for all EU member states.

Part of the vision of Eterbase is to adhere to the highest regulatory standards in Europe and are in the process of applying to become an ‘Electric Money Institution’.

A market maker’s paradise — introducing negative trading fees

Eterbase is different from most other exchanges by introducing negative trading fees for all market making orders executed by premium 5 and higher membership tiers. Premium memberships come with locking a set amount of Xbase tokens — the exchange token of Eterbase.

Having the highest premium membership would mean all trading fees are collected by you.

Premium members will be rewarded in trading fees from both executed buys as well as sells. This makes Eterbase exchange an attractive playground for market makers, ensuring liquidity for all.

Rewarding the locking of Xbase tokens would mean increased scarcity as well, which in turn is positive for the token value.

Direct access with IBAN and FIAT integration

Eterbase will allow full IBAN functionality to all clients of Eterbase who are EU residents and have passed bank-level KYC. IBAN functionality is provided through Eterbase’s partnership with Majestic Omnibank. You won’t have to transfer your tokens out of an exchange to Coinbase/Kraken ever again. Cheaper and faster trading by allowing direct entries and exits with all G20-currencies (e.g. EURO).

Done trading? Just transfer back to your bank account. Easy as that.

IBAN/EURO integration will be implemented by late August/September. The technical implementation is already done and tested via API.

Core engine specs

  • Infrastructure agnostic multi-node architecture: Great single node performance that can be run from both public or private clouds. Can partition and is Fault Tolerant.
  • Order-matching component: up to 15 million trades per second on a single node.
  • Messaging solution: up to 20 million messages over the network between two nodes.
  • Extremely scalable DB engine: Maximum performance only limited by cost.
  • Latencies well under 100 microseconds, even under high load.

While most solutions only focus on the number of transactions per second (TPS) they often forget the latency as well, which is the delay in the time it takes for information to travel from one point to the next. Having high TPS is great but means nothing with low latency. Widely acknowledged messaging systems have latencies as high as 50–100 milliseconds with each hop, or even higher under high load. Which means frustration among traders as orders get executed too slow. Eterbase recognizes these constraints and aims to ensure high-frequency trading practices are possible.

Initial exchange offerings and Launchpad

To make Eterbase attractive for entry-level projects, Eterbase has decided to follow into the current trend of Initial Exchange Offerings through their very own launchpad. Having a fully compliant exchange administers the ICO on behalf of the project is a great next step to further improve trust within the cryptocurrency space.

To participate, token issuers must pay a listing fee, including a percentage of the tokens sold by the project. This should be an incentive for marketing operations of the token issuers as well. Eterbase is actively creating partnerships with projects that plan to sell tokens directly for fiat.

REBELLIOUS pre-listed on Eterbase
In addition, Eterbase has chosen to pre-list REBELLIOUS (REBL) on their exchange. You can read more about the project here. If you are interested in pre-listing your project as well, you can!

I have asked one of the REBL team members what drew them to Eterbase exchange. One of the major reasons, in this case, was the wish of the REBL community to list there. Apparently, REBL has a lot of token holders who are eyeing the development of Eterbase as well and seemed interested in the whitepaper. Hence REBL won Eterbase’s first Nomination Campaign.

…and more!

Besides the features mentioned above Eterbase is also working on:

  • Regulated derivatives for major cryptocurrencies in the form of perpetual contracts within the legal framework of MIFIDII
  • Eterbase is engaged with multiple regulators and central banks to test the issuance of security tokens and secondary trading.
  • Multilateral Trading Facility (MTF) and Organized Trading Facility (OTF) are some of the licenses Eterbase is pursuing to increase compliance even more.
  • Debit and Prepaid Cards
  • and Masternode hosting!

PART 2: the Token

From ERC223 blockchain…

Eterbase Coin (XBASE) is considered a utility token following the ERC223 Ethereum Network standard and has been audited by several external parties for security risks.

ERC223 has 3 main advantages over ERC20:

  1. Eliminates the problem of lost tokens.
  2. Reject non-supported tokens.
  3. Energy efficiency and lower transaction fees.

Furthermore, ERC223 tokens are compatible with ERC20 tokens. Everything designed with ERC20 in mind also works on ERC223. Hence, ERC223 is like ERC20 — but more secure.

… to Eterbase Core DAG

While the current ERC223 blockchain standard should suffice, for now, Eterbase is exploring options to move beyond the constraints of blockchain technology and move on to a future based on Directed Acyclic Graph (DAG).
The benefits of a DAG over the blockchain are:

  • DAG is blockless. DAG projects have no blocks. All transactions can be stored anywhere in any random order. There only needs to be a check if none of the addresses in the ledger contain negative balances.
  • DAG can be scaled easily. For each transaction submitted, two must be validated. Each user is thus considered a miner, the more people use the network, the more transactions get confirmed. This would enable both an endlessly scalable and extremely fast network.
  • No Mining Fees. If all users are miners, then no fees should be taken from anyone. No miners means no block generation time, which equals an extremely fast network.
  • Quantum-Proof. PoW-based transaction confirmations have the danger of running into major problems as soon as quantum computing is advanced enough to break cryptography. DAG-networks are quantum resistant.

Xbase is a utility token and is not legally affiliated with the Eterbase exchange. Its main goal is to promote the use of the Eterbase exchange through Premium Memberships.

Of the current total supply, 270.000.000 are “strategic reserves” and 50.000.000 is meant for technical development.

Premium Memberships enable a number of bonus features on the exchange and can be obtained by holding a set amount of Xbase.

PART 3: Should you invest in it?

This question can only be answered by you the reader. To help you in your analysis I will provide a comparison of other exchange tokens. Do note this is not a limitative list.

*data for BTMX is incomplete at cmc, in that case taken from CoinGecko

This is a small comparison on the potential upside of the market cap of the token when comparing against similar exchange tokens. Especially Dgtx, NEXT, and COSS seem somewhat similar in nature with Eterbase. Compared against either of these the market cap of Eterbase seems within normal bounds. The market cap of Digitex would be a potential target to shoot for, with the absolute max being that of BNB.

Bitmax at first seemed like an exchange token that had everything going for it during their latest uptrend, however, on closer inspection, the supply seems…off, with only 13.7 M of 10 B circulating. The market cap is on the low side as well compared against other exchange tokens.

Feature comparison

While the concept of negative trading fees is not unique for Eterbase it does seem more attractive compared to other exchanges. Digitex, for example, has no trading fees but COSS returns 50% of all trading fees back to COSS holders. Negative trading fees are reserved for higher-end Xbase holders only and mainly serve as an incentive to attract market makers and traders.

Regarding licensing and regulation is where the waters get murky. Even while doing due diligence among each respective exchange and sometimes personally asking admins/CEO’s — most cannot specify which licenses or regulations their exchange is compliant with (or is going to be) besides basic KYC/AML. It seems Eterbase is unique in being transparent which licenses they are aiming for but NEXT is following the developments closely as well and seems adamant on being as compliant as possible too.

Digitex apparently does not need licensing at all…based in Seychelles this does not seem surprising. Most exchanges choose to register somewhere with minimal legal constraints applicable.

While Eterbase does not seem unique with having a FIAT-gateway, a masternode hosting feature could make up for that. Furthermore, Eterbase has mentioned exploring a derivatives trading option. Much like Digitex does right now, as Digitex is mainly a futures-exchange. Eterbase will allow both asset-based and derivatives trading at one point. In essence, then, Eterbase will be the one-stop-shop for all.

Closing statement

In conclusion, Eterbase is a promising second-wave exchange offering multiple features combined in a single exchange. Being based in Europe and being transparent in pursuing all of the necessary licensing makes it seem like a trustworthy exchange. All of this combined could lead to more upside of their exchange-token (Xbase) as well. However, the success of Eterbase is dependent on having a successful launch and attracting necessary liquidity. The exchange is going live very soon and the team is actively working on making sure all features go live as soon as possible. FIAT gateways will be ready shortly after launch.

Disclaimer: Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins, etc.) entails a substantial risk of loss and is not suitable for every investor. You are responsible for the risk and the financial resources you use to trade crypto. The content in this article is mainly intended to inform and/or educate and should not be considered financial advice.

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