Cryptocurrency has been an exploding industry. In 2017 alone, it had 1200% of an increase in terms of market cap. The blockchain industry has made it look attractive to invest in, but most of the traditional investors are currently not in the market. Here are a few reasons why: lack of regulations, security, liquidity, volatility, and usability.
Not only does a traditional investor need their accounts to be KYC/AML compliant before they can enroll their money into an investment, the cryptocurrency world is also a bit too chaotic and small for them to be enrolled into right now. These are investors with traditional assets ready to jump into the cryptocurrency market. One of their accounts could easily be a whale or seaman in the cryptocurrency market. So currently, the only options for traditional investors to benefit from blockchain technology is to invest in stocks such as AMD or NVIDIA, and we could see that those stocks have already benefited greatly from cryptocurrency. Another way for traditional investors to get involved is to be involved in a dark pool.
Dark pools are for anonymous trades that happen without affecting the market. In the traditional market world, it is done in block trading so the large amount of trade could happen without triggering a volatile rise or fall in the price of the stock. In the cryptocurrency world, this is done via cross chain atomic swaps. Atomic swaps allow the exchange of coins without the need for a centralized third party
There are more investors looking to trade their traditional assets into cryptocurrency, however their assets could cause volatility into the market. Let’s look at the numbers of market cap comparison:
- Cryptocurrency at its peak: $700 billion
- Dotcom bubble at its peak: $3 trillion
- Gold: $7.7 trillion
- Global stock markets: $73 trillion
- Global real estate: $217 trillion
- Derivatives: $544 trillion
Without dark pools, traditional assets entering the cryptocurrency market could cause a volatile amount of movements. However, the success of these dark pools could mean that traditional assets are entering the market. And yet, there is a lack of platforms where an investor could trade stocks and cryptocurrency simultaneously. This is due to the anarchism in the traditional cryptocurrency market. In fact, Bitcoin was started due to the financial crisis and the lack of trust in the Wall Street. However, as time goes on, there are more investors who steer away from the anarchism mentality and are in the market purely for profits. Who can blame them? However, there is currently no platform that allows users to trade cryptocurrency and stocks so traders could trade simultaneously in financial and cryptocurrency markets.
This means that we need an exchange to open the floodgate for the traditional assets ready for the cryptocurrency market. An exchange that allows traders to simultaneously trade cryptocurrency for stock or vice versa without waiting days or a couple of weeks in between. This would not only make it more convenient, trades to be more liquid, but would catch cryptocurrency and Wall Street up with the times. This could mean that billions of traditional assets could enter into the cryptocurrency market and if it could be sustained, it could help every early adopter in the market. Not only that, Zeus Exchange will be the most secured platform cryptocurrency has ever seen by utilizing technology from NEM for multi-signature to ensure the safety of traders’ asset. Zeus Exchange will be opening the floodgate for whales and sea men, so watch out!
lllustration by Marina Demchenko (Mamihlapinatana Studio)