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Exchange Consolidation: Why Africa Needs One-Stop Exchange

UTC by Andrey Sergeenkov · 4 min read
Exchange Consolidation: Why Africa Needs One-Stop Exchange

There isn’t a consolidated marketplace for investors to gain exposure to diverse assets native to the African market as well as other non-African stocks. 

Africa is seeing the rise of great blockchain innovations. Also, in terms of interest, different sectors within Africa are beginning to explore blockchain technology to solve several problems peculiar to the African business geography. One particular area is the displacement of costly mediation channels, most notably remittance.

According to recent reports, Africa ranks as one of the most promising regions when it comes to cryptocurrency adoption. With Bitcoin and other cryptocurrency ownership rates are up by 13% and 7%, respectively. Compare these figures to the world average of 7%, and you’ll see that the continent is very receptive when it comes to cryptocurrency.

With very interesting indigenous cryptocurrency projects like Yellow Card, Akoincity, Bitsika, and several others, all gaining footing, the continent is seeing new blockchain solutions attempting a hit on exciting African business problems.

This article takes a zoom into a crucial area of challenge, which is the African financial market, and the company, speaking of XTEMCoin, which is providing a market-wide solution for some of the problems like mediation illiquidity and accessibility for local and foreign investors and traders.

It is worth noting that the African crypto space has a number of popular cryptocurrency exchanges, but what is lacking is a consolidated exchange, with an exotic offering of stocks native to the African market, as well as other instruments most notably cryptocurrencies, all in one platform.

Temcoin: When to Have a Coin/Token

Beyond being a digitally generated cryptocurrency, like Bitcoin, Ethereum, Dogecoin, and others, the XTEMCoin has real intrinsic value that proves its quoted market price. Temcoin is synthetically indexed to defined commodities exchanges, indices, stock markets, and more, which is how it gets its value.

Think of Temcoin as an ETF  tracking the aforementioned assets.

Also, this project is built by an asset holding company, TE. Markets Ltd , which has a history in asset management.

According to Ian Mvula, Founder & CEO of Temcoin, “Unlike other coins, XTEMCoin is not just going to be a naked cryptocurrency but rather will have real intrinsic value… and also enjoy the full credit and might of T.E Markets Limited and its various projects.”

Consolidated exchange in Africa

Like we mentioned earlier, the African crypto space is already inundated with several cryptocurrency exchanges. However, there isn’t a consolidated marketplace for investors to gain exposure to diverse assets native to the African market as well as other non-African stocks.

TE. Markets Ltd, the provider of Temcoin, is taking a hit at this problem by synthesizing all of these instruments in its market. Currently, in its ICO phase, Temcoin is a smart contract-powered token that is the backbone of the XTEM consolidated exchange.

As far as liquidity is concerned, Africans now have a one-stop shop where they can trade almost all asset classes, especially exotic African pairs, which you won’t find on many exchanges.

XTEM and Its Plausible Use Case

A large majority of the cryptocurrency being traded in the market lack a fundamental value to back their quoted prices. In February of this year, Lee Ju-Yeol, the bank of Korea’s governor lashed out at the lack of fundamental values for several high-volume currencies. It is against this backdrop that the XTEM team worked round the clock to address many of these criticisms.

XTEM has solid fundamentals propelling it. More so, it has direct links to not only major stock markets but also commodities markets, proving yet again just how big a project this is, especially to the African crypto space.

When we think of XTEM, we don’t think about complicated algorithms, passwords, or some fancy blockchain technology, instead, we think of African’s first consolidated exchange that is buoyed by real fundamentals and intrinsic value.

Conclusion

 

Away from all the rinse and repeat cryptocurrency projects currently permeating the crypto space in Africa, XTEM is set to do something outside the box. If they were ever to achieve their goal of setting up the first African consolidated exchange, it will be a real game-changer in the African financial market.

Guest Posts
Julia Sakovich
Author: Andrey Sergeenkov

Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.

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