We are pleased to announce the launch of Spectre Exchange, a centralised exchange for the buying and selling of digital assets in a safe and regulated manner. These include Bitcoin, Ethereum and SXDT/SXUT, at first. SPX is a contributing asset to the DALP and the exact schedule of contribution will be published, we estimate, in 3 months from launch once enough data on flows has been gathered.
The blockchain exchange industry has been dominated by a few large players and many upstarts primarily from Asia. Many in this pack have and continue to offer an unsafe environment for traders and investors to procure and hold digital assets. With a range of hacker-incidents and other technical breaches, in our view very few, if any instil the confidence required to allow larger, institutional pockets of money to enter the space. Unethical practices such as lack of segregation of client funds, inappropriate smart contract code audits, inappropriate key-man-risk mitigation measures, lack of business continuity measures, amongst others, make many blockchain exchanges a non viable option to list one’s digital assets on.
The security problems above are compounded by unethical practices by management teams in order to gain more listings and custom. These practices include price gouging (charging millions for projects to list), no due diligence on digital assets listed, no KYC and thus, direct breach of global AML directives and wash trading facilitated by bots with the clear aim of inflating volumes in order to attract more custom.
Where SPX stands out in this regard is, it suffers from none of these problems. Every user needs to pass internal KYC and AML checks before depositing funds. Multiple technical (automated and manual) checks are conducted to ensure citizens from restricted regions such as U.S.A are not permitted access. All projects listed are heavily vetted for management quality, business model quality, business model legality, multi-year-runway (or outright profitability). No bots are allowed on SPX. And last but not least, SPX prices itself well below all exchanges for new projects to list as the goal is not to grow at all costs, but to offer an environment for traders and investors alike, to learn about, procure, sell or hold digital assets that actually offer significant long term potential of survival or growth.
SPX is centralised with significant security measures in place and will roll out a broad feature set over a 5-year period.
Year 1: Smooth, error free order handling, processing and holding of digital assets along with full payment service provider (PSP) integration to allow for fiat based procurement, deposits and withdrawals. The integration of new, high quality digital assets for vetted projects. The integration of DALP BOLR program for the ongoing SXUT mandate.
Year 2: The connection of SPX to regulated liquidity providers. The onboarding of a new global asset class; the Digital Sentiment Tracker (DST). The SPX mobile app. The exploration of issuance of digital asset rewards directly to SPX user wallets in a currency of their choice (not just Ethereum). SPX UI design enhancements.
Year 3: The connection of SPX to DMA (direct market access) providers via FIX API, thus allowing traders and investors to trade global equities, bonds, fixed income and ETFs straight from their SPX unit. The integration of SPX Portfolio Tool; a portfolio tracker tool which showcases a trader/investor their current portfolio and provides a range of analytics and financial KPIs.
Years 4/5: The application to and onboarding of key triple AAA regulatory licenses (up and above the current regulatory licensing by the KASE), thereby opening up key regions which will remain restricted for the first 3 years.
SPX is an off-roadmap development item for the firm. Yet its strategic significance is not to be underestimated and its timely launch, welcomed, given the increasingly dire circumstances of the industry. The firm will aim to build out its 5-year-plan for the exchange.
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