Decentralized Exchange with Open API To Facilitate Security Token Trading

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by Andy Watson · 4 min read
Decentralized Exchange with Open API To Facilitate Security Token Trading
Photo: BaseCore

Cryptocurrency exchange platform launches proprietary protocol that leverages Protocol Labs Solutions to develop a stable security token backed by real-life assets of private IT companies.

BaseCore, a parent company to the security trading platform of the same name, has launched their minimum viable product (MVP), Excalibur, a decentralized crypto exchange. With this MVP, BaseCore moves into the market, aiming to remove barriers associated with investing in private IT companies with the potential to become unicorns. Through this partnership, a proprietary BaseCore security token, backed by real investments in these companies, will allow investors to make a profit from the capitalization and growing rates of private startups that could become the next Revolut or UiPath.

At the heart of BaseCore’s new concept lies the BaseCore token, a stable security token backed by strong startup portfolios with proven competitiveness and sustainability in the market. The BaseCore token features two main components: investment, based on high-yielding returns of private IT company assets and security, provided by a stable rate, based on real-life investing in other financial assets, providing immunity to unpredictable volatility in the cryptocurrency market.

A user-friendly decentralized exchange protocol

Existing exchanges are not fully decentralized and have basic problems regarding availability and security on a server’s interface. EtherDelta, for example, lacks basic UX (user experience) elements, making the platform challenging to navigate. BaseCore’s Excalibur merges UX with adaptive mobile design concepts into an intuitive, single-page application reportedly utilizing the most modern and secure iteration of IPFS (Interplanetary File System) from Protocol Labs for maximum product decentralization.

IPFS is a P2P (peer-to-peer) file-sharing system that seeks to change how information is distributed across the globe. According to BaseCore team, it allows users reliable and fast access to the interface, regardless of server performance while also preventing potential DDOS attacks. To exclude source code spoofing, Excalibur features a unique hash each time a new IPFS is released. Excalibur is currently available in closed alpha testing on the Kovan Test Network.

Following the launch of the protocol, BaseCore will utilize Excalibur’s open API on their own trading platform where certified investors that successfully pass AML/KYC procedures will be able to create their own security tokens on BaseCore, perform crowd sales using their security tokens, engage in trading ERC20-standard tokens and margin trading, invest using fiat currencies, and create personal security token pools.

BaseCore, founded by Alex Krakovskiy, is currently working on adding new features to the trading platform. The roadmap highlights a dashboard that presents detailed balances, brand new analytics tools, the ability to perform private exchanges and automatic order executions, a mobile and native desktop version of the BaseCore app, as well as the ability to make fiat deposits.

Crypto assets are coming of age with the rise of STOs

Crunchbase Data mentions 23 unicorn startups so far this year with a combined valuation nearing a quarter-trillion dollars. However, micro-investors are deprived of the chance to purchase shares when traditional IPOs launch. These investors have turned to the cryptocurrency market, where there is relatively unrestricted access to established assets and new ICOs. In the absence of clearly outlined rules and regulations, one of the main challenges affecting the cryptocurrency market is high volatility. Following the SEC’s ruling that ICO tokens are deemed as securities in the US, Robert Jackson, (SEC) Commissioner, added earlier this year that “investors are having a hard time telling the difference between investments and fraud.” In 2017, many investors have been deceived by unregulated ICOs, triggering a need for a better investment alternative.

Crypto assets are coming of age with the rising trend of STOs (security token offerings). With the theBaseCore token, BaseCore looks to bridge the market gap between traditional startup IPOs and cryptocurrency with a security trading platform that is backed up by real-life assets, such as the portfolios of private IT startups. Just like stocks, security tokens are better regulated, allowing startups and company founders to legally implement an STO in the US, as well as in other countries where cryptocurrency crowdfunding has been forbidden.

Blockchain News, News
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