Meet Burstex: First Public Crowd Owned Exchange

UTC by Steve Muchoki · 3 min read
Meet Burstex: First Public Crowd Owned Exchange
Photo: Depositphotos is the world’s first crowd owned crypto exchange built on the Burst blockchain. It will be a crypto exchange where the profits will be distributed amongst the shareholders.

Burstex crypto exchange roadmap began in the first quarter of 2019 when the founders formulated the idea. However, not until the second quarter that the founders had a clear mission on what to build. Having gathered all the required information regarding the project, the founders gathered the team members during the third and the fourth quarter of the same year.

With the team in place, Burstex 1st private funding round by angel investors completed in the fourth quarter and managed to raise $2,258,500.

Having all the necessary things in place, went public on January 15, 2020. According to its whitepaper, the company prides itself as the world’s first crowd owned crypto exchange built on the Burstblockchain. Essentially this indicates that the company is owned and run by shareholders.

The official token used by Burstex is called BEX and was launched on June 15, 2020. According to the company, investors willing to purchase BEX will automatically be registered as shareholders and set to receive rewards accordingly.

This is a new way of incorporating investors directly into crypto exchanges without owning the exchanges directly.

Burstex Exchange Possibilities

Burstex is expected to compete with existing crypto giants including Binance that largely controls global crypto exchange in regards to daily recorded volume.

The cryptocurrency exchange business is one of the profitable sectors in the digital asset industry. New startups and also established crypto exchanges like Binance are said to be making more profits than the Deutsche Bank, whereby the bank recorded pre-tax profit was 158 million euros in the second quarter of 2020.

Exchanges profit mainly from collecting trading fees, this is a small percentage taken from both the maker and taker of a trade. The average combined (maker+taker) trading fee on Burstex is 0.1177%.

The company anticipates capturing 1% of the global trading volume within the first year. With the current daily trading volume standing at around $40 billion, 1% would reciprocate to the company controlling $4 billion a day.

According to the whitepaper, the company observed that the global daily volume has been rising exponentially year over year.

“Just 3 years ago the average daily trading volume was around 0.1 billion USD. Today volume being at 40 billion (taking into account the lower range) that is a 400x increase! Meaning exchanges today earn 400 times more than they did in 2017,” Burstex explained in the whitepaper. “Will this number increase by another 400x by year 2023? We believe it will,” it added.

Anyone who owns BEX token can stake it either on the Burstex exchange or in their own Burst Coin online or offline wallets.

This is using blockchain technology to solve crypto challenges, especially with exchanges. It is a field that is yet to be fully exploited and likely to capture global crypto trading in the near future.

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Steve Muchoki
Author Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

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