There’s a new kid on the block, a new wave of cryptocurrency exchanges designed to improve the overall experience of using a cryptocurrency exchange.
folleX, claims to be the ‘worlds first regulated social crypto exchange’, but what does this mean?
Well, folleX have outlined what they believe are a few problems with the way exchanges are run at the moment. They believe that when first time traders join exchanges, they are over faced with a confusing and daunting format. New traders are often left to figure everything out on their own, folleX refer to the current format of exchanges as sterile, meaning that there is no opportunity for new traders to interact with experienced traders.
They believe that for many, the success of their first few interactions with the exchange will be down to luck, folleX want to change this.
The social regulated format of folleX means that new users are able to follow and copy more experienced traders within the folleX exchange. The system automatically sets funds and limits based on how the other users you are following are setting their accounts. The idea is that you as a new user can sit back and watch your trades happen, based on the system following the actions of experienced traders. The social element allows communication to happen on all levels, turning the exchange into something more like a social network.
At present, folleX holds over 100 different cryptocurrencies, 34 FIAT currencies, is available in 24 languages and is a government regulated exchange. Moreover, within folleX, transaction fee’s can be waived for a folleX set, folleX’s own token (based on an ERC-20). These tokens are then passed back to the top traders within the exchange to reward them for supporting other new users.
Whilst it does initially sound like a way for new users to piggy-back off the hard work of committed traders, the platform does seem to offer the experienced traders an incentive for helping other users out via the SET tokens, the value of these is disputed at the moment but as this is a new idea, it will take time for a solid value to level out.
This idea of social regulated exchanges invites an element of creativity into trading. By opening up a friendlier forum and a space to learn from the experts, I do expect other similar exchanges to open up off the back of folleX, provided its platform proves to be a success.
So, what will happen as a result of this?
I believe this is going to contribute to the market boost as simply it will allow more, slightly nervous traders to start getting involved. It will take a while for social regulated exchanges to make a difference but as (if) more open up, the levels of activity within the blockchain will increase. The more people that get behind cryptocurrencies, the bigger the market will get. I don’t think social regulated exchanges are a catalyst for change but I do think they will help add fuel to the fire that is the ever growing cryptocurrency industry.
Featured Image Source: Pixabay