London-based cryptocurrency trading firm EXMO will introduce the concept of margin loans on its platform to enable traders to boost profitability on currency trading by leveraging trades on borrowed funds. Seen as an extension of margin trading, in which traders are able to buy more assets than their funds allow by borrowing from the broker’s, margin loaning from a peer network of around 700,000 active traders worldwide – growing by the day – opens up the potential for users to trade cryptocurrencies on far larger scales beyond the limits of their own funding.
The EXMO platform plans to offer a leverage of 1:2 for margin loans on the most popularly traded cryptocurrencies of BTC and ETH, as well as fiat currency USD. As demand and usage of the service increases, EXMO expects to be able to offer more options with higher leverages in the future.To build the foundations for the development of this platform and to provide the necessary needs to fulfill margin loan demands, EXMO has decided to organize a public sale for its native digital currency, the EXMO Coin (EXO).
The EXMO token sale and EXMO
While the existing EXMO platform is already a profitable product, the EXMO token sale is believed to be the catalyst for the rapid development of planned additional features, particularly that of margin loan services. As such, half of all the funding attracted will be used to cover the margin loan demands, while 25% of funds raised will go towards the overall continuing development of the cryptocurrency exchange platform.
To protect lender interests and assurances, the remainder of the funding will be used to establish a margin loan insurance fund, acquiring the licensing necessary for facilitating fiat currency transactions, as well as covering marketing expenses. As an incentive to token sale participants, all token holders will receive half of the revenue generated from margin lending activities, to be distributed in the form of monthly dividends.
After the conclusion of the token sale, EXO is planned to be listed on the EXMO Exchange in several currency pairs including EXO/BTC and EXO/ETH, with future plans to support altcoin and other currency pairs. This should then create more avenues for digital asset’s profitability.
Additionally, EXO token holders stand to benefit from a guaranteed token buyout from EXMO, beginning not earlier than April 1st, 2020, providing long-term assurances for the token sale contributor. The EXMO crowdsale begins in less than three months, on February 26th, 2018, with 300 million EXO up for sale at a base price of $1 each.