EXMO is one of the oldest cryptocurrency exchanges, operating out of England with a user base of over 1,300,000, from across the world. Some of the notable achievements of EXMO on a global scale are:
- 7th by the number of transactions per minute
- 10th largest Bitcoin exchange
- 17th by the trading volume in USD
EXMO wants to expand its business further and provide its users with even more benefits through the release of the EXMO token (EXO). The exchange is releasing the token for two main reasons:
- Cover the demand for margin loans
- Further development of the platform
The margin trading technique is quite famous amongst the crypto traders as it allows them to buy more tokens than their personal capital. However, providing margin loans is an expensive operation for the cryptocurrency exchange.
Why it’s different
2017 has been the year of ICOs, and around 210 were conducted during the year. More than
$1,099,922,902 US was raised through these ICOs, most of which was raised in December 2017 alone. But, not all of the ICOs were successful, and only a few dozens were genuine ICOs with a strong idea backing them. Many of the ICOs were scams, and some were even elaborate pyramid schemes. The market for ICOs is booming, and investments are pouring in.
What makes EXMO’s ICO different to all the rest is that EXMO is already a leading company and it has an existing userbase of over one million.
Desmond Marshall, who is a pioneer in the cryptocurrency field and the managing director of Rouge Ventures, is acting as an advisor to EXMO, explains:
“We are not talking about a company that is just on paper. They actually have a lot of traffic, a lot of actual business running itself, so as a business itself it’s already attractive, and especially when they are running an ICO it’s even better because one of the biggest issues of running an ICO is token sustainability, how to keep a token alive after you have issued the token itself. If you are running one of the world exchanges, you’ll be listing your own token to increase the traffic of these tokens and the trading of these tokens.”
Marshall is the backbone of EXMO’s initiative to launch the EXO token. He is not alone, and others also share his vision. Margin trading is an important tool that allows professional traders to raise the stakes and make big trades.
Giovanni Lesna is another advisor for EXMO’s token crowdsale. He is an experienced financial, business and trading expert and is an advisor to Adbank and Lucyd. He believes that EXMO’s initiative to launch their own token is a requirement if EXMO wants to stand out in the crypto exchange industry. He commented:
“The EXMO Coin crowdsale’s structure is cleverly set out with some proceeds from the ICO being set aside as an insurance fund. This shows EXMO’s dedication towards creating a much-needed margin loan facility, but building in safeguards to protect against any ‘black swan’ events and handle the crypto volatility. In addition, this provides all market sides with a choice of long and short trading abilities.”
The crowdsale for the EXO token is planned to go live on September 10, 2018, The following are some of the details of the EXO token:
- Issued in total: 300,250,000 EXO
Unsold tokens will be burned
- Exchange Rate: 1 EXO = $1 US
- Hard cap (Pre-sale + Crowdsale): $300,000,000 = EXO 300,000,000
- Minimum Investment: 15 EXO
- Platform: Ethereum
The following image represents the distribution of investment if the hard cap of $300,000,000 is reached:
Distribution of investment
Along with the usual profit, investors will also benefit from investing in the EXMO crowdsale due to the following reasons:
- EXO gives out dividends
- EXO tokens are backed by an existing, operating business
- EXO rate grows with the crypto market
How the token will grow
EXO’s value is directly correlated with the performance of the exchange and the greater crypto market. Both of which are expected to grow significantly in the coming year. In their whitepaper, EXMO has provided a detailed prediction of how the market will grow in the coming 5 years.
The growth of the token is dependent on the following variables:
- Number of traders on the platform
- Number of trades completed
- Trading volume
The following image represents the growth of the EXO token that has been planned by EXMO team. However, the true growth may be different to the planned one, as the market can always react unpredictably.
EXMO predicts that the number of traders on the platform will increase to 657,135 by the year 2022 and consequently the number of trades will increase to about 6 times what they are now. This would result in EXO’s value increasing 20 times.
By the end of 2018, EXMO plans on integrating the margin loan service onto their platform, allowing their users to make bigger trades. Other functionalities that will be added by the end of 2018, are:
- PAMM account mechanism implementation
- 150 currency pairs will be added
- Licenses revived
For 2019, EXMO has the following planned out:
- Communication protocol
- Features contract is added
- Partnership with other exchanges
- EXMO to be included in the top-3 global exchanges
- Currency pairs to be increased to 300
- Shanghai office opening
- Volume of marginal loans to reach $1B per year
By 2021, EXMO aims to become the leading cryptocurrency exchange and increase their revenue from margin loads to more than $2 billion.
EXMO seems to be on the right path for expanding its business and improving the customer experience of their traders. It’s all green lights for EXMO in its journey to become the leading cryptocurrency exchange in the world.