The founder of the RelayX wallet, Jack Liu, has been helping investors to deal with a crisis on a cryptocurrency exchange by using Bitcoin SV’s ability to tokenise assets.
The exchange OKEx recently suspended all withdrawals because, it explained, “one of our private key-holders is currently cooperating with a public security bureau.” It hasn’t said who, or what this all about, although it has assured users that their money is safe.
In response to the crisis, Jack Liu has implemented an innovative solution which provides a case study for the potential of tokenisation on BSV.
The problem at OKEx is an unusual one, Jack points out. The exchange is still functioning normally with the important exception that users can’t withdraw funds. This has led to the kind of tokenising option that he is offering, using BSV.
But Jack says that he’s not the only one thinking along these lines: “because you can’t withdraw, there appears to be already emerging markets that allow a user with funds on the exchange to swap with a user who has funds outside the exchange.”
So how does the OK BSV token work? It first requires OKEx holders of BSV to transfer them within OKEx:“right now the funds are sitting with different users’ accounts inside OKEx. So instead of that, if you would like to have a representative token for your asset, funds are sent to a central account inside OKEx and the amount backing that is one to one issued for an OK BSV token.”
While buyers of OK BSV tokens are offered them on a one to one basis with their BSV funds, there will be a small percentage charge of one to 0.995 when you want to redeem them for BSV again.
Jack sees the BSV token as providing real practical value to some OKEx customers: “imagine you’re saving up for a wedding or to buy a house or something. And you need to close on the house next week. Even if you are absolutely certain that everything’s fine, which is exactly what the exchange is saying, you might have a liquidity issue and you just want to have some funds outside exchange now. So this option, I think, is critical, but it also just coincidentally demonstrates our new RelayX token wallet, and also our use of the RUN [tokenising] protocol on Bitcoin SV.”
For Jack, the OK BSV token is just the start of what will be possible, and not just for financial products: “traditional assets, whether it’s farmland or fruits or produce or buildings or financial assets, those don’t run on any common ledger. And so those values are very hard to transfer. You’d have to take the funds out to dollars and then wire money to somewhere else to move these assets. So there’s going to be a massive shift to tokenise every asset in the world onto a common ledger.”
Another step that would make that vision more possible would be for all BSV wallets to offer tokenising protocols – the more the merrier, Jack says: “the sooner we get to a market consensus and market dominance, the more tokenization happens. I think you need tokens for Bitcoin to take the next step in its evolution.”
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