The Forex market is a multi-trillion industry. Facilitating global trade, different currencies must change hands for transaction settlement. It is estimated that the global Forex industry has a daily turnover of $5.7 trillion.
It is therefore the world’s most liquid market. Compared, the traditional Futures market has a daily turnover of $440 billion, while the US Stock market turns just over $257 billion a day. Evidently, volumes fluctuate but the liquidity depth of the FX market is virtually incomparable.
For further perspective, the total Bitcoin volumes traded on any given day don’t come close to. At $4.8 billion a day, the Forex market is in several magnitudes more liquid than a market sub-sector touted to be revolutionary and highly disruptive.
What is BridgeCoin?
Despite this, it remains bland and lacks innovation. Traders flock to this market but over and above everything, there has been no shaping innovation or no disruption. Bridgecoin seeks to change all this and be a market leader employing blockchain solution for better efficiency and cost-cutting.
By introducing an element of trustlessness via the Stellar blockchain, the billions of dollars that brokers charge as the commission will significantly drop. Through the slogan, “freedom of online trading, like never before”, incorporating blockchain eliminates high commission fees estimated to be 10%.
Bridgecoin’s main objective is to be a trusted payment gateway for the promising and inevitable Forex market. Acting as a payment gateway, its role amongst others will be to perform a variety of tasks to facilitate payment between acquiring and issuing banks. Towards that end, it will either approve or decline transactions determined by verifying the information.
Also, Bridgecoin will act as a secure gateway facilitating exchange of information between relevant parties. Brokers will at instant channel payments to market makers or liquidity providers who play a vital role of ensuring that retail traders can not only access different markets but when they do, spreads are narrow and attractive.
Associated fees in this arrangement will fall by over 75% from 5-7% to between 0.5-1 percent. To jumpstart the process, Bridgecoin has allied with several leading brokers who serve as facilitators and liquidity providers. In this arrangement, cashback bonuses will be redeemed for Forex credit which will then be used for trading the market straight from the platform’s proprietary wallet.
The BD Token and their IEO in Q2 2020
Towards that end, the Bridgecoin ecosystem is introducing the Bridge (BD) utility token. The last private offering saw the project sell 15 million BD tokens each at $0.7, raising $10.5 million. In Q2 2020, the project will carry out an Initial Exchange Offering (IEO) on a reputable cryptocurrency exchange platform.
No specific ramp has been mentioned. What is emerging is that it will be a next-generation exchange that is highly ranked by CoinMarketCap, trading over 370 pairs. Each token will retail at $1.3 and the crowdfunding executed in three stages. An IEO is practical because, after a successful raise, the token will most likely be listed by the exchange, injecting liquidity and paving the road for more exchanges to list the token.
The BD token will be based on Stellar blockchain standards. The Stellar blockchain has a partnership with IBM, a corporate that has links with the global banking sector as providers of hardware and software solution, and is scalable with near-zero on-chain fees.
Stellar is designed for speed and instant transaction settlement, an indispensable feature that comes in handy in the volatile FX market. Since 2014, the Jed McCaleb founded platform has proven its reliability and effectiveness by acting as a currency payment platform meant not for corporations only but for everyday users.
Its native currency, XLM, has a market cap of $894 million and ranked at 11th in the liquidity leader-board.
Innovative Products from Bridge
Bridgecoin plans to roll out three innovative solutions for the Forex market:
1. OneClickCopyTrade platform is where other traders can copy and execute trade positions posted by skillful-or master-traders from any broker. Different from traditional social trading platforms, through Bridge traders from any broker, trading from any location in the world can copy trades from skillful traders, opening up the trading space.
2. ONE PAMM (Percentage Allocation Money Management) is a platform where funds pooled by different investors are managed by masterful traders and artificial intelligence. Bridge will employ a rigorous vetting process to ensure that only masterful traders with proven track records have access and responsibly manage investor funds.
3. ONE PRIME will act as a prime broker where partner brokers can use this platform as leverage and purchase BD tokens at spot market rates. However, a key distinction is that nothing binds the broker. Partnering brokers will, at their discretion, continue to manage risk and profits through leverage and by determining the amount of BD to allocate to their clients.
To Cap it Up
Ultimately, Bridgecoin’s ambition is to be a reputable liquidity provider and join established firms like Saxo Bank, Sucden and LMAX Exchange by Q3 2021. Bridgecoin will consequently join the long list of blockchain firms that try to improve efficiency and slash the costs of commissions for retail traders. Establishment will mostly depend on the adoption level.
