Globitex introduces a digital currency exchange allowing everyone to trade commodities and money market instruments for Bitcoin.

Globitex was founded by a team of traders to bring their expertise and vision to the cryptocurrency industry. Globitex is a project that has raised over one million euros in venture capital funding. It is an institutional grade Bitcoin exchange that was launched in the summer of 2017 as a working prototype and they expect to release it to the public in the beginning of this year.

One of the issues they want to tackle first is the lack of liquidity that exists today in the cryptocurrency market. Thus, one of the first goals for Globitex is to launch other major currency pairs; to expand the Bitcoin-Forex order books. After that, they plan to develop cryptocurrency money markets, where eligible market participants are able to lend out their assets at specific maturities by setting market-based interest rates. They believe that by developing a money market in Bitcoin they will be able to increase the liquidity and equalise the supply and demand for Bitcoin in the spot market.

Furthermore, and as the Bitcoin liquidity continues to increase they, plan to enable standardised listing of various commodities futures and options on an open order book basis.

One thing that I like about this project is that they try to also add value to the bitcoin itself. They say in their whitepaper that “scaling the Globitex exchange will benefit Bitcoin and foster its development as a medium of exchange that is suitable for facilitating global trade”. In other words, instead of just trying to extract money from the cryptocurrency market, they want to grow together and help the cryptocurrencies achieve what it is intended to do, that is to be a

(1) Medium of exchange: money allows goods and services to be traded without the need for a barter system.

(2) Store of value: this can refer to any asset whose “value” can be used now or used in the future i.e. its value can be retrieved at a later date.

(3) Unit of account: this refers to anything that allows the value of something to be expressed in an understandable way, and in a way that allows the value of items to be compared.

Now, the GBX TOKEN

The GBX token, as an exchange token, will have the main purpose to settle trades on the Globitex exchange, serving as both a commission payment token and a token that can be used within loyalty programs. Also, Globitex claims that they will also reward the holders of GBX tokens during the GBX Token lifetime. This lifetime is predicted by them to last around 10 years. After this period they will review the use of the tokens and then make the necessary adjustments on continuation of the program.

So, in terms of future plans. In the white paper they detail their business development stages so that they can achieve their goals. But in summary they will have a Token Sale, which includes the issuance and distribution of the GBX Token, that in turn will fund the initial project development. Meanwhile they plan to obtain the appropriate regulatory licenses in one or several of the European jurisdictions.

In stage 1 — They want to
(1) allow Bitcoin to be traded against major fiat and other cryptocurrencies;
(2) Implement the FX margin trading ability; and
(3) List precious metals spot contracts.

In stage 2
(1) Develop Bitcoin money markets — BIBOR (as-known-as Bitcoin Inter-Broker Offered Rate)
(2) List cash settled commodity futures and options; and
(3) List cryptocurrency futures, swaps and options.

In stage 3
(1) List Bitcoin priced Globitex commodity index — GCOM
(2) Enable precious metals futures contracts to be physically deliverable
(3) Further develop warehousing infrastructure and expand spot commodities

If you want to know more about this project, I will leave a link to their website, ICO and white paper below. In there they examine the importance of money markets and commodity trading and why such assets should be linked to cryptocurrencies. They also include a technical description of the Globitex product. Definitely worth to read if you want to know more about this project.

• Web: https://www.globitexico.com/
• GBX ICO website: https://globitexico.com
• Globitex white paper: https://www.globitexico.com/wp.pdf

So, please let me know your thoughts on this project in the comments.

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