FN Media Group Presents Cryptocurrencynews.com Market Commentary
Bitcoin prices continue to rise after gaining nearly 15%, or $970 million, over a two week period. Publicly traded cryptocurrency companies are once again in the spotlight with interest in the sector renewed after the lengthy selloff that followed the all-time highs achieved throughout Q4 2017. These recent price changes have seen companies like HIVE Blockchain Technologies Ltd. (TSX-V: HIVE) (OTC: HVBTF), Hashchain Technology Inc. (TSX-V: KASH) (OTC: HSSHF), Global Blockchain Technologies Corp. (CSE: BLOC) (OTC: BLKCF), Riot Blockchain Inc. (NASDAQ: RIOT) and AXS Blockchain Solutions Inc. (CSE:BAXS) (FRA: C0B)drastically increase their market caps over that same period. While the majority of these companies heavily focus on cryptocurrency mining, new innovations within the industry, like Peer-to-Peer (P2P) marketplaces, are drawing significant investment from some of the sector’s largest companies.
Centralized exchanges like Coinbase, Binance, Kraken, and others have provided access to the cryptocurrency markets during the industry’s formative years. As these exchanges continue to grow, so too do their fee structures, internal regulations, and other prohibitive measures that make it difficult for investors to take part in the cryptocurrency markets. In 2017, Coinbase received a valuation of $1.6 billion when they raised $100 million, with that number reaching as high as $8 billion in 2018.
Where the popular centralized exchanges leverage their size to provide access to the crypto markets, this access comes with a price. Transactions are completed through the exchanges with no interaction between buyers and sellers, fees are high and continue to grow, and withdrawing funds can take several days to weeks. These kinds of barriers are unattractive to traders who want to trade cryptos with minimal space restrictions.
The Growing Popularity of P2P Marketplaces
Peer-to-peer marketplaces have gained traction as reliable alternatives to major centralized exchanges like Coinbase and Binance. Recently Riot Blockchain Inc. (NASDAQ: RIOT) purchased 12.5% of Coinsquare (CEX) at a valuation of CAD$430 million, adding another strategic partnership to a growing roster of joint ventures.
AXS Blockchain Solutions Inc. (CSE:BAXS), a leading blockchain solutions company, has signed a letter of intent with Blockchain Foundry to develop a new P2P marketplace that will offer safety, security, transparency, and a seamless experience as part of its core offering.
Decentralized P2P marketplaces like Paxful and Localbitcoin offer a more personalized experience than some of the larger exchanges by eliminating the need for intermediary parties. According to Paxful co-founder’s Ray Youssef and Artur Schaback, their marketplace processed as many as 8,000 Bitcoin transactions per day in 2016. However, P2P exchanges like Paxful sacrifice basic security in favor of anonymity by avoiding the use of basic verification systems like KYC. This exposes investors to additional risks that can easily be avoided by seeking out safer marketplaces to trade on.
ZUBX P2P Marketplace – Creating a Centralized P2P Crypto Marketplace
Transparency is the backbone of blockchain technology. ZUBX will be developed by Blockchain Foundry upon signing of the development agreement. Their development team was responsible for creating Syscoin, a token that is backed by technology that can process as many as 300,000 transactions per second, allows for instant asset transfers, and functions much like the eBay of P2P marketplaces.
The ZUBX P2P marketplace embraces the new P2P movement and will be offering a personalized trading experience that will include many of the security features that traders have come to expect from some of the major exchanges, but are unable to get from other P2P marketplaces. These features include:
- Instant messaging capabilities that allow users to communicate and structure the terms of any deal before they take place. Determine if a specific buyer or seller is someone that you actually want to trade with.
- Multi-coin support that will enable users to trade Bitcoin, Bitcoin Cash, and Ethereum. Additional coins may be added in future updates.
- Escrow service. Fiat and cryptocurrency validation to protect buyers and sellers.
- Unparalleled privacy and security. ZUBX holds all crypto assets in cold storage using multi-signature wallets and 2FA authentication in order to protect assets that are being traded in our marketplace. You can trade knowing that sellers actually have the coins they are selling because we verify the existence of a seller’s cryptocurrencies before any trade can take place.
- AML (anti-money laundering) and KYC (know your customer) verification in order to verify the legitimacy of users and to create a transparent trading experience.
- Fast withdrawals that are designed to allow users to instantly withdraw their money using debit cards that actually work. Withdraw funds from anywhere where a debit card is accepted.
- A comprehensive seller rating system that lets you assess the reputation of any buyer or seller that you are thinking of trading with. Seller ratings will be validated by the blockchain, providing buyers with a useful feedback tool to grade the quality of a seller.
Combining all of these features will create one of the safest and most efficient P2P crypto marketplaces to date. With Blockchain Foundry potentially heading the development of ZUBX, AXS Blockchain Solutions will be building the next generation of P2P marketplaces that provides a decentralized experience that includes the many features crypto traders want from centralized exchanges like Coinbase and Binance. Simple features such as instant messaging and ratings are attractive to traders who are interested in learning what type of people they are dealing with when engaging in a transaction. All trades on the ZUBX platform will be secure due to the fact that most of their funds are held in cold storage and require 2FA authentication. Not only does this create a secure trading experience for users, but it ensures that buyers know that the sellers actually have the cryptocurrencies they are trying to sell.
Companies Actively Investing in the Cryptocurrency Space
Companies such as HIVE Blockchain Technologies Ltd. (TSX.V: HIVE) (OTCPK: HVBTF) are working to bridge the gap between cryptocurrency and traditional financial institutions. The company has partnered exclusively with Genesis Mining to facilitate easy and affordable mining services for customers of varying financial backgrounds. By leveraging low cost renewable energy, HIVE hopes to bring cryptocurrency mining to the masses.
Newcomers in the cryptocurrency mining space, Hashchain Technology Inc. (TSX.V: KASH) (OTCQB: HSSHF), offer a variety of cryptocurrency mining services including hosted on-site mining, DASH Masternode hosting, and Node40 Balance accounting. The company’s proprietary software runs 24/7 to ensure safe and stable mining operating at full efficiency.
Riot Blockchain Inc. (NASDAQ: RIOT) aims to gain exposure in the cryptocurrency industry by offering a diversity of blockchain-based services, joint ventures, and targeted investments. The company’s acquisition of Coinsquare, a leading Canadian cryptocurrency exchange, is their attempt to further establish their presence in a burgeoning industry.
Global Blockchain Technologies Corp. (CSE: BLOC) (OTCPK: BLKCF) are working to facilitate adoption in the cryptocurrency space by enabling traditional investors to invest in a basket of holdings without a deep technological understanding of the industry. Global Blockchain hopes to become the first vertically integrated originator and manager of digital currencies.
P2P Exchanges To Challenge Centralized Competitors
With the launch of ZUBX, major exchanges are poised to lose users as they will not be able to compete with a P2P marketplace that offers the same level as security that they do. When safety, security, and transparency are equal, users will always favor the platform that offers cheaper fees, faster transaction times, and the ability to withdraw your funds as quickly as possible. ZUBX promises to offer all of these things and more in order to create a better crypto trading experience for users that want to trade, invest, hedge, and diversify their portfolios.
For a more in-depth look at AXS Blockchain Solutions Inc. (CSE:BAXS) (FRA: C0B), please read the full report on Cryptocurrencynews.com.
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