Azbit is the next crypto project providing an exchange platform offering margin and algorithmic trading. As numerous similar projects have not turned into a success, Azbit needs to bring something special to the table to have a chance at succeeding. And it does. With Azbit, it is possible to invest in both cryptocurrency and traditional stocks.
Attract new money and increase adoption for cryptocurrency
In order for crypto to fulfill it’s potential, more adoption is needed and new money has to come in. However, 2018 showed us that not all new money is a step in the right direction. At the start of 2018, you couldn’t visit a party without somebody talking about cryptocurrency. At the end of 2018, hardly anybody was talking about cryptocurrency at casual gatherings.
The new money that came in from June 2017 onwards was mostly from people who were looking for quick returns and thought they found their golden ticket. A lot of this new money was put in without proper knowledge of the crypto projects, or sometimes even the blockchain. When the market started to drop, this new money was withdrawn much faster than it came in, as people took their losses and looked elsewhere for their golden ticket.
What crypto needs is new money that is backed by a long term vision an belief in at least the blockchain. Traditional stocks could be a great target market for the crypto community. A lot of stock traders tend to be much more experienced, do not expect huge returns in a short time and make educated decisions. Of course, the stock market also includes people in search for their golden ticket, but with the market being more mature, the average stock trader could be of great value in the crypto community.
Quick overview of the platform
The platform offers its own exchange, built on top of the already existing exchange BitSane. On this exchange, Azbit makes it possible to trade in both stocks and cryptocurrency. Both margin trading and algorithmic trading will be available on the exchange.
Azbit also offers banking services, making it possible to open an investment account to trade on stock and forex markets, or to apply for a loan backed by cryptocurrency.
The investment platform offered by Azbit has a community feel to it. It is easy to copy a portfolio and the transactions of successful traders, while you can also opt to put another trader in charge of your investment portfolio.
Azbit has its own identification, which will also be available on iOS and Android. This secure identification has 2FA as a standard, making your account safer from the start. Furthermore, it makes it easy to pass KYC in future crypto projects on the azbit platform: the Azbit ID will automatically take care of this.
Token use
As with all cryptocurrency projects, the token use is key to long term success. If the token is not usable, or it’s usage will not be adopted in great amounts, it is likely to decline in value. Azbit combines multiple token uses that have proven to be successful on other projects.
The main use for the token is heavily linked to the platform itself: paying exchange and platform fees at a discounted rate. Binance is the main success story here, with BNB being heavily used on a daily basis to pay only 50% of exchange fees with every trade.
If Azbit will manage to attract and retain enough users to their platform, the token use is a solid foundation for longer-term adoption.
Roger Ver as an advisor
Azbit generated a lot of attention after announcing Roger Ver as an advisor. Ver is one of the early adopters of Bitcoin and has successfully backed several projects in the past. Although he is a controversial name in the cryptocurrency world, his involvement shows Azbit has the potential to add something interesting to the cryptocurrency world.
Ver is an outspoken character and one of the reasons part of the crypto community is split in two parts: the Bitcoin believers and the Bitcoin Cash believers. This might turn people who are against Ver off from investing in and/or using Azbit. However, his track record should attract interest from a lot of people and his proven track record should be sufficient to outweigh this negative side effect.
My opinion
Azbit is a very interesting project that could help bring the financial market closer to the crypto market. I do believe this is also a necessary step for Azbit to succeed.
Whether Azbit will succeed depends on how many active traders will adopt the platform. For cryptocurrency traders there is no direct need for a new exchange, unless their algorithms provide high values and positive returns. If Azbit can attract stock traders to enter the crypto world, or use Azbit as one of their platforms to combine stock trading and crypto trading, the value of their token will go up, causing interest of crypto traders. This could be the key to success. If as their stock trading possibilities are hardly used, Azbit will be no more than just another crypto exchange with a few extra benefits. Given the competition in crypto exchanges, it will be very hard to succeed.
I would like to see Azbit succeed, as the crypto community would benefit from connecting with the traditional stock market. It would help mature the market, bring in new money and help adoption of cryptocurrency.
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