Meet Stox, a new Prediction Market Platform
The invest.com Group will use the Bancor protocol, a new standard for cryptocurrencies which are continuously liquid called “Smart Tokens” to launch Stox, a prediction market platform, as released by Bancor.
The invest.com team, who claims the Bancor protocol to be the best liquidity solution based on blockchain technologies, will issue its STX token with the Bancor token to be held as its reserve. The BNT was chosen as the foundation for the invest.com team’s platform, as this way it guarantees continuous and high liquidity for Stox users on ethereum. In such a way, users of Stox’s prediction market platform can, firstly, purchase STX directly with the BNT smart token using Ether, and secondly, easily liquidate STX back to Ether, with guarantee of low slippage and absence of spread.
For context, last month it took the Bancor ICO less than three hours to hold the largest fundraising campaign in the blockchain industry, raising over $153 million from 10,885 participants.
How it works
The Bancor protocol enables built-in price discovery and a guaranteed liquidity mechanism for tokens on smart contract blockchains. These smart tokens hold one or more other tokens in reserve thus enabling any party to instantly purchase or liquidate the smart token in exchange for any of its reserve tokens. Exactly this way STX holders will be able to liquidate their tokens for BNT or ETH with ease. The smart token’s contract is used for the liquidation, which is done at a continuously calculated price, according to a formula which balances buy and sell volumes.
The new platform offers a strictly peer-to-peer trading experience. Stox runs using an algorithm that assesses what the crowd thinks about a specific event. It is also dynamic – prediction patterns and assessments change based on daily occurring events. For instance, the platform could show that 80% of users believe that Jon Snow will become King of the Seven Kingdoms. But, if Jon Snow iis killed again, the crowd could change their mind. Thus, in case now only 10% of users think Snow will be King, then the platform will adjust the expected result based on changing opinion through the price of that prediction.
Bancor meets the industry’s critical need for a token able to link all cryptocurrencies to each other without need of relying on traditional exchanges. Overcoming the liquidity challenge will make it possible for anyone to create a token for their project without worrying about achieving liquidity, which, in its turn, will enable the new cryptocurrencies to emerge, which may potentially worth a lot of money.
“We are excited to collaborate with Stox and support their effort to become a pioneer member in the Bancor network. We believe that the guaranteed liquidity and the stability of STX will benefit token holders, the Stox project at large and provide a strong case study for the Bancor protocol.” said Eyal Hertzog, Chief of Product, Bancor.
“Stox is a transformative step in our journey, as it allows us to combine the power of blockchain with the array of infrastructure, technical, sales and marketing assets that are currently powering invest.com,” said Ophir Gertner, Founder of The invest.com Group.