While the RBI is clearly not comfortable with the idea of cryptocurrency as a medium of exchange, the government’s stance on this issue is not clear.
After China reiterated its hostile stance on cryptocurrency mining and transactions, the global cryptocurrency market capitalization saw a slump of about 9.26 percent. As a result, crypto investors have been flocking to DEX (decentralized exchanges) tokens, which allow for greater autonomy and control over their transactions, as compared to centralized exchanges like Binance and Coinbase.
And in an effort to boost the DEX ecosystem in Asia, Starter, an IPO (Initial DEX Offering) launchpad, incubator, and investor network that allows the interoperability of IDO launches on 7 popular blockchains announced the launch of NASDEX, an independently owned and operated decentralized exchange that allows users to trade tokenized stocks on the blockchain through a minting and trading mechanism. What is DEX?
What distinguishes DEX from other centralized stock exchanges is that they offer a peer-to-peer trading platform, minus the necessity of banks, brokers, clearinghouses, or any other intermediary, facilitating trade execution through smart contracts.
More cost-effective than centralized exchanges, these contracts are essentially mini-programs running on blockchain that are automatically executed once a certain, specified set of conditions are met. This gives the investors complete access to their crypto tokens and management of their wallets and private keys. What is NASDEX?
NASDEX, whose token will be listed for $0.025, is designed to serve as a bridge between the crypto and the equity world and mitigate the geographical limitations of traditional exchanges.
Initially, NASDEX will target tokenized Asian equities trading for investors, having a market cap near $30 trillion. The NASDEX token holders will also share in the platform revenue of NASDEX and offer governance rights to community members, so holders not just benefit from growth in revenue, but are also given the choice to add additional markets, stocks, or features.
In addition, It will allow traders and investors to sell tokenized stocks, trade 24/7, and also buy fractional shares of their favorite stocks. Additionally, NASDEX will compensate traders for their gas fees by rewarding users through liquidity rewards and minting. NASDEX has the potential to include the global equity markets, having a combined market cap of around $100 trillion.
“Cryptocurrencies, as an asset class, are growing rapidly but lack investment options offered by traditional institutions with equities and bonds,” said Lionel Iruk, Special Counsel at Starter. ”NASDEX can bridge and diversify letting users have both of best worlds as they continue on their investment journey.”
Using this platform, investing and managing both user’s equity and crypto positions across a single platform will be facilitated by simply connecting the required wallets. The rebalancing between crypto and equity portfolios will also be seamless on NASDEX.“Crypto projects are spreading from the crypto world into the real world with the corresponding expansion of total addressable market (TAM) and investment returns for all involved,” said Josh Du, Chief Investment Officer at NASDEX. “Innovations in Defi and blockchain have the ability to add brand new features onto traditional asset classes. NASDEX’s focus to bridge the crypto world and the Asian equity world will create a much-needed product for this large and untapped market.”