I remember losing my very first Bitcoins in MtGox hack, back then wished that I somehow would have had an insurance on my coins, but well, not many knew what Bitcoin was anyway! But what if we could have an insured cryptocurrency exchange?
Sure, some exchanges do offer insurance for fiat deposits. However, logically speaking how many times have we seen USDs or Euros being stolen from an exchange? Also, some exchanges use smart risk management services, such as keeping 95% of the tokens on cold storage and having less than 5% of the token funds on the exchange wallet directly. Even though Binance is using top notch cryptocurrency risk management technique, Binance users fell victim to a phishing/API attack recently. The Binance team suspended withdrawals immediately upon noticing suspicious activity which stopped the hackers in their tracks.
What if Crypto exchanges’ risk management fail?
Cryptocurrency exchanges make very handsome amount of profit. Hence, they are able to observe a few million USD worth of hacks. However, if the hack would go over and beyond their balances, these exchanges could go down under. The only solution is to have an insured cryptocurrency exchange.
Insured Cryptocurrency Exchange
While searching for an insured cryptocurrency exchange I’ve found one called CGCX.io. They are based in Singapore and at the time I am writing this article they are also having the last day of their ICO.
I’ve had a quick glance at the Calfin Global Crypto Exchange. They are not just another ICO nor just another exchange it appears. CGCX cryptocurrency exchange already has its beta live and they have been having on average USD 3 million worth volume per day for the past couple of weeks. Their token is currently valued almost at 0.05 USD (1 ETH = 8500 CGX). They claim to be Singapore’s Insured cryptocurrency exchange. In fact, I am surprised that they have already presence in multiple countries as well and they aim to include crypto to crypto to fiat solution.
Double investment opportunity?
As usual I’ve dug inside the tech opportunity as well. From what I found out the CGCX trading platform is connected to LPs aka market makers via directly some of the biggest existing exchanges, which is likely to make them highly liquid. They have fiat options for Euro (EUR), US Dollar (USD), Korean Won, and Singapore Dollar (SGD).
So, I believe insured cryptocurrency exchanges will start becoming mainstream if one will offer it to all. And therefor, CGCX would have a good edge there with their tokens too. With their currency $0.05 ICO pricing, their token also appear to have good ROI potential. Especially if we compare them to Bancor, Binance, Okex, Huobi, and other good exchange tokens. If this exchange does deliver all of their 4 deliverables I would also expect their token price go towards $0,50 level, that is the 10X there!
Let me know what you think about the insured cryptocurrency exchange idea.
Get CGCX token: https://tokensale.cgcx.io/Account/Register
CGCX whitepaper: https://www.cgcx.io/wp-content/uploads/2018/05/Whitepaper.pdf
CGXC Beta exchange: https://exchange.cgcx.io/