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First Nasdaq-powered cryptocurrency exchange goes live in June
DX Exchange will offer zero-commission trading for users, but will be charging a monthly subscription fee.
“The advantage of this cooperation is threefold: the brand name, the technology and the regulations,” DX Exchange CEO Daniel Skowronski told Finance Magnates.
But despite Nasdaq being a US-based stock exchange (and second largest in the world), DX will not be rolling out in the US in June, as it is still in talks with regulators. The exchange will initially open trading of the top six cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and EOS.
A preview of the platform can be seen below:
The main promise of the new exchange is that the exchange will be regulated—meaning they will ensure that no funny business goes on behind the trades. This has been a problem plaguing the cryptocurrency trading industry; allegations of manipulation by exchange companies have become rampant. One big example is Bitfinex, which has been accused of printing Tethers (USDT) out of thin air. Some allege that they are making more tokens than there are US dollars coming in. While these allegations have not been proven, it was enough to shake up the crypto-sphere.
South Korea’s largest crypto-exchange—the fourth largest in the world, is currently facing a fraud scandal accusing their top executives of falsifying its balance sheets and selling tokens they don’t have.
Nasdaq has pledged to fight back. Recently, they teamed up with Gemini for an anti-manipulation market surveillance technology: “the solution correlates real-time and historical data with detection patterns to ensure early detection of unusual trading patterns that could be potential breaches of exchange trading rules and practices,” they wrote in a release. They added that the technology focuses on detecting “manipulation techniques being used to gain a trading advantage.”
Additionally, as more tokens keep popping up by the day, most are just out to make a quick buck by hyping ICO’s up for a massive pump and dump. DX plans to curb this by screening cryptocurrencies thoroughly before adding them into the exchange.
“We are supporting blockchain technology. And the way we can help this ecosystem to progress is by vetting the tokens and making sure the good ones are promoted. We are not going to list coins, just because they pay us. Those who are worthy – will be listed,” Skowronski said.
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