Mandarin is a decentralized exchange, which puts an emphasis on security and complete democracy, by giving token holders voting rights for critical decisions, such as cold funds withdrawal and other functionalities which will be described in the following piece.
The project is currently running an ICO, which is due to end on September 29th.
Mandarin’s agenda, claims that the current majority of exchanges, which are centralized, are controlled by a narrow circle of people, a fact that does not meet the common standard of today’s decentralized crypto space. This type of centralized exchanges, creates:
- Irresponsible actions of exchanges’ administrations
- Profit centric exchanges which puts earning as a primary goal (instead security and reliability)
- Low level of customer support
- Opens the door for funds theft.
Mandarin believes that it is time to stop this trend by transferring the power to the people of the cryptocurrency community.
Mandarin exchange, will be governed by a distributed management, it will be done by dividing the company’s assets among all Mandarin Token (MNT) holders.
By implementing this type of asset distribution model, Mandarin hopes to solve the issues of embezzlement of investors’ funds, government’s’ intervention and regulation, hacking & cold funds theft and disagreements on new coin pairs introduction and administrative decisions.
Mandarin plans to solve these issues, by giving power to the people. Each investor who owns more than 10 MNT (Mandarin Token), becomes a member of the exchange community by gaining voting rights, which can be related to decisions on matters such as introduction of new currency pairs, addition of new features and capabilities, modifications to existing capabilities and approving cold wallet withdrawal (currently at a tentative threshold of 35%).
Top investors, who are defined by owning more than 1% of the total token supply, can access an admin panel with expanded statistics on trading, current exchange rates and exchange load monitor.
The exchange is due to be launched on October 2017, In order to attract users into the exchange, the trading fees will be standing on 0%, on January 2018, the fees will be raised to 0.05% and will be followed by a final commission of 0.1% which will take place on April 2018.
Upon launch, the exchange will support exchanging Bitcoin (BTC), Ethereum (ETH), Dash, Zcash (ZEC), Litecoin (LTC) and Monero (XMR) and on the Fiat money side, USD, RUB and CNY will paired with these coins.
The exchange will also allow users to perform margin trading, the leverage ratio allowed will depend on the amount of funds collected during the ICO. The initial plan is to provide a leverage ratio of 2:1 and to increase it in the future to 3:1. The us of margin trading will drag an increase in commission for security.
In addition to the exchange, the team at Mandarin plans to issue a personal debit card, which will allow holders to easily withdraw money from their Mandarin accounts at ATMs located around the globe as well as cashing in cryptos which are supported by the exchange. Any deficit in withdrawing Fiat currencies such as USD, will be fulfilled by utilizing the platform’s exchange module.
Like many new fields of blockchain and cryptocurrency related solutions, the field of decentralized exchanges is a super competitive one. Many teams see the need for implementing various solutions in this space, due to some reasons such as:
- A large number of different coins – in the (hopefully near) future, when people will actually use cryptos for day to day payments, there will be a need for convenient exchange services, as each person will potentially hold different coins.
- Decentralization – as discussed before in relation to Mandarin’s agenda, many believe that having decentralized exchanges (DEX), will solve many problems, such as trust, security and more.
- In store solutions – the users of cryptocurrencies will need solutions in order to pay in the retail environment, they will need to have solutions which provide high liquidity and reliability.
EtherDelta is a decentralized peer-to-peer exchange, that puts its focus on trading Ethereum tokens. The platform is already up and running, it gains lots of traction due to the its ability to allows ICO participants to trade their redeemed tokens, without signing up to any web site or service.
A decentralized exchange that wants to “Unbank the Banked” by enabling real-time, peer-to-peer value exchange and payment services. The team focused on providing point of sale solutions which will assist merchants and retailers to accept payments in the form of different Fiat currencies and different cryptocurrencies.
OmiseGo have recently announced their collaboration McDonald’s Thailand.
A project which ran through a recent successful ICO, a decentralized which acts without a global order book. Kyber works by maintaining a reserve warehouse which holds an appropriate amount of crypto tokens for purposes of maintaining exchange liquidity. This creates an exchange with relatively high liquidity which is able to provide instant transactions to users.
Kyber Network and OmiseGo’s OMG token are the only two projects which in Vitalkin Buterin, one of Ethereum’s co-founders and a highly valued founder in the blockchain industry, is currently an advisor at.
Not a direct competitor, but provides tools for other competitors, by providing a protocol for on-chain and off-chain currency exchange.
An project which offers a decentralized exchange, the team behind it focuses on three main problems:
- A lack of transparency
They plan to solve the liquidity issue, by either fulfilling orders on their own exchange, or for cases where there is no matching sell order for a buy order, to purchase on your behalf currencies from various exchanges worldwide, in a seamless manner.
A decentralized exchange which focuses on privacy, security and asset-toasset trading, meaning that the deposited funds will always sit on a private cold storage with full user autonomy and control.
Unfortunately, we cannot cover all of the competitors, as this market is huge and consists of many other solutions.
Based on the whitepaper, below are the main team members of Mandarin. The project’s CEO is Petr Orlov, a mathematician and a supporter of the free internet with a strong technical background which includes creating torrent related solutions, browser gaming and trading bots.
Alongside him you can find:
- Sergey Tsvetkov, an experienced developer and an expert in the field of server maintenance and cloud storage. He sees the high importance of security.
- Christina Zhuravleva, the team’s digital designer, in charge of website design and brand identity.
- Iliya Karetnikov, a specialist in the field of information security, worked at Kaspersky Lab until he turned his attention to the study of cryptocurrencies and blockchain systems
- Li Young, blockchain developer
- Dmitry Ivanov, a specialist in the field of game theory and stock analysis
- Alfred Paterson, marketing specialist, promoted big companies such as Mitsubishi, HP and Western Digital
- Said Shankar, a long-term strategy advisor
- Maria Kim, HR Specialist
- Tomas Taylor, Technology Advisor
- Michael Vass, Community Manager
Pros and Cons
- A well defined governance model with clear details on its basic mechanism.
- Allows margin trading.
- Puts an emphasis on decentralization and putting power at the people’s hands.
- The market which Mandarin plays at is extremely competitive and already hyped.
- No clear plan on solving liquidity issues which other decentralized exchanges talk about.
- Not enough information in regards to technical and operational plan specified on the project’s public documentation.
ICO and Token Details
Token: MNT is an ERC20 compliant token which is built on top of the Ethereum blockchain.
Supply: The token has a fixed limited supply of 1 million tokens.
Value: The value of the token will be determined at the end of the ICO, according to the number of funds raised.
Hard Cap: 70,000 ETH.
Allocation: 70% of the tokens will go to the ICO participants, 20% will be locked in the exchange, 5% for early investors and additional 5% for bounty campaign benefitors.
For more info: Mandarin’s website