What is Morpher?
Morpher is a trading platform with zero fees and infinite liquidity. Its a market protocol built on the Ethereum blockchain. Morpher virtualizes trading and investing by rebuilding financial markets from the ground on the blockchain.
What is the purpose of Morpher?
Morpher´s purpose is to democratize trading and investing by making it accessible and free for anyone.
Why should I trade on Morpher?
By rebuilding the financial markets from the ground on the blockchain, Morpher has managed to introduce a lot of desired trading properties (or they did manage to cut all undesired properties of trading as it is today). These properties are
- Trading is accessible for anyone 24/7, every day
- Morpher supply infinite liquidity on their private sidechain
- Morpher does not charge any fees, ZERO costs
- There is no counterpart when you trade on Morpher (or the smart contract is the counterpart) and the counterpart can not default
- There are no middlemen that take fees
See the full pitch from Martin Froehler on YouTube
What trading features does Morpher offer?
Trading hours: You can place a bet on any listed market 24/7, even if the underlying market is closed.
Counterparty: Morpher doesn't rely on counterparties and by doing this they exclude all burdensome and costly middlemen.
Infinite liquidity: Morpher has created its own sidechain on the Ethereum blockchain where they have the power to mint and burn their own token. By doing this, they can supply infinite liquidity.
Slippage: The slippage is eliminated for the same reason described above under “infinite liquidity”.
Fractional Trading: The smallest fraction for trading is 1 Morpher token and the estimated price is $0.03.
Short selling: You can short any listed asset with Morpher and there are no extra expenses involved.
Leverage: Morpher will launch without leveraged products but this will be added, up to 10x.
Stealth trading: Trades on Morpher never affect the price of the underlying asset. This is like a perfect dark-pool
Zero Fees: There will be no fees involved with trading on the Morpher platform. The standard spread which is on all markets will take care of the transaction costs. there will not even be any Ethereum gas fees when you use the Morpher app on the sidechain.
Global markets and trading: Almost anyone can access the Morpher trading app.
Instant trade settlement: You trade is settled instantly
How will Morpher earn money?
Morpher will earn money by mint new tokens every day. So, they will mint 0.015% of the total supply which corresponds to about 5% and its similar to Bitcoin and Ethereum inflation rates.
What is the major risk with the Morpher trading platform?
You must be aware that you are always exposed to the price of the Morpher token. It's similar to when you trade stocks, you are always exposed to the fiat currency the stock price is based on.
How can Morpher offer infinite liquidity?
Morpher has the power to mint and burn token based on the performance of individual traders. A counterpart is a smart contract so there is no seller that limits the supply and therefore there is infinite liquidity. This leads us to the question, what happens if all traders are successful on the platform? Well, that is actually a jackpot for the platform since they have a crowd of people that consistently outperform the market and they can be one of the best asset managers in the world. We describe the different scenarios more under tokenomics.
ICO vs Airdrop
Morpher did choose to go to the market via an airdrop since they believe in Metcalfe's law and tokenomics. If they had chosen an ICO they would have risked getting a few investors that sold the token and left no one using the platform. Now they distribute free Morpher tokens via an airdrop to get a large community that will, hopefully, appreciate the platform and trades them.
Is Morpher Safe?
Morpher has developed a product where you keep control of your funds in your crypto wallet. The protocol is almost entirely self-sufficient and they will decentralize even more over time.
Actually, you can choose if you want to interact with their protocol or never involve their backend or protocol. You can choose to just use the live data feed. In addition, Morpher has built safeguards so that even if Morpher fails or disappears the protocol will remain fully functional on the Ethereum main chain.
What markets will be supported on Morpher?
At launch in mid-May 2020, Morpher will support over 600 markets including US stocks, commodity futures, spot forex, and major cryptocurrency pairs.
What is the tokenomics of Morpher?
Morpher believes in tokenomics and Metcalfe's law and they did, therefore, launch an airdrop. There are three different scenarios that could happen to the tokenomics of Morpher.
- Morpher can mint or burn the token and therefore the supply is not constant.
- The token price is free-floating and not pegged to any fiat currency. Any investing in Morpher involves exposure to the Morpher token as well as the underlying asset.
- There are 2 different scenarios regarding successfulness on the platform
- Traders are equally successful as on any other trading platform. This is what Morpher expect and what they have built their token on
- Traders are more successful in Morpher than in general. If the community consistently beat the market Morpher could be the largest asset manager in the world (a hedge fund).
- Traders are less successful than an average trading platform. The token will decrease in supply and the systematic demand will force the token price up.