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New Non-Custodial DEX for SLP Tokens Launching: An Opportunity for Read.Cash?

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1 year ago

With recent changes to the Ant-Money Laundering (AML) legislation in the U.K., Cryptophyl, the exchange for Simple Ledger Tokens, will have to comply and are required to conduct Know Your Customer (KYC) verification checks. While Cryptophyl believes in privacy and freedom from surveillance, there isn't a way around the legislation and will have to follow it if they want to remain incorporated in the U.K.

Source: Token24

However, Cryptophyl announced they will be launching a decentralized, non-custodial exchange that will not be required to comply with the European AML legislation:

we’re delighted to announce that we’ll be launching a decentralised, non-custodial SLP trading solution. This will be operated by a non-UK registered company under the Detoken brand. This company will not be required to comply with the European AML legislation that applies to Cryptophyl.

Cryptophyl is a trading name of Detoken Technologies Limited and Detoken will manage the decentralized exchange (DEX) as well.

The DEX's order book and account system will be "centrally managed" but users will maintain custody of their crypto.

Cryptophyl will not have access to user private keys.

The client application for the DEX will be open source and maintain transparency and security for the community.

The majority of DEXs focused on security over the user experience which in many opinions is what holds back DEXs from having the volume needed to compete with centralized exchanges. The team behind the Detoken DEX worked backward and focused on user experience first, then security, and then releasing it to the public. They are hoping to have a "similar user experience" as the Cryptophyl exchange.

The new DEX will launch in May 2020.

What Are Some of the Advantages and Disadvantages of a DEX?

Advantages:

  • Lower risk of attacks

  • Virtually no downtime

  • A higher level of privacy

  • Not restricted by regulations

  • Non-Custodial

Disadvantages:

  • Lower trade volume

  • lower liquidity

  • No direct fiat payments

  • No fiat trading pairs

  • Less functionality

  • No insurance

Cryptophyl Exchange

Source: Cryptophyl

The centralized exchange came out of closed beta back in August of 2019 and since then has seen volume growth of around 30% each month. In December 2019, the exchange traded almost $500,000 within a 4-month span.

The current exchange will be going through a new design change with an application that has been built "mobile-first" and includes changes such as:

  • User notifications

  • Multi-language support

  • Significant UI upgrades

  • Trading improvements

  • Dark Theme

  • Price charts

The new application will be rolling out by the end of February 2020

Along with the new design, Cryptophyl also announced in August 2019 of launching their native exchange token DROP. They started to do airdrops for DROP on September 21, 2019 and will run monthly for 3 years or till September 2022.

The Cryptophyl exchange will also have new trading pairs scheduled for January 15, 2020:

  • BCH/BTC

  • BTC/USDH

Possible Opportunity Knocking for Read.Cash?

Source: Unsplash

While there is another DEX that is currently in the alpha stage of development (SLPDEX), Cryptophyl seems to be doing a lot for Bitcoin Cash and SLP. Launching their DEX could be an opportunity for Read.Cash to add SLP token support. This can lead to a wider audience and larger adoption.

I am aware of the Read.Cash team already has the idea to add SLP token support as mentioned in their roadmap and with adding that support, the platform could create its own token or tokens for communities (or both) to add more value and for the Read.Cash, Bitcoin Cash, and SLP community.

By having SLP token support, this could incentivize communities on Read.Cash and allow for more growth for the platform. I've noticed that currently, the categories of content on the platform is more on Bitcoin Cash and cryptocurrencies. While that is common for a blockchain-based blogging platform that has recently launched, having more categories that have support will attract content creators that have interests in other topics.

For example, recently I was discussing Read.Cash to a friend that is a music producer. While he has interests in cryptocurrencies, that is not the type of content creation he focuses on. When he visited Read.Cash, he noticed the same thing that the type of content that gets most support is crypto-related content. He wants to focus on music content and decided to try out other platforms.

By creating tokens for communities like music, those in the community could find more support and trade those tokens on the DEX. This can lead to more liquidity and trade volume on the DEX and growth of the Read.Cash platform creating a synergy between the two.

What are your thoughts about the new DEX and the idea of adding SLP token support on Read.Cash with creating tokens for communities? Let me know in the comments below.

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Comments

Thank you for the suggestions!

Read.Cash to add SLP token support

We actually discussed that a few times and decided not to do it. First of all, there are too many tokens. 99.99% of them have no value. Second, the UI of SLP is very confusing. https://i.imgur.com/WKYYUWJ.png (there are "Dollars" that aren't Dollars, DOGE that isn't Doge, USD which isn't USD)... Frankly, we see no benefits at all and a big disadvantage for UI. A user who gets 100 USD which is not USD at all would definitely think that read.cash is one big scam...

Let's say that someone creates a token for music category in read.cash. It's value is exactly zero. No better than upvotes on Reddit. Even if your friend gets a billion of music tokens, he still has exactly zero of anything.

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1 year ago

Yeah, the market is diluted with tokens but it's up to the team behind the token and the community to give it value.

Yes SLP has misleading tokens but how would users come to the conclusion that the "fake" USD they got comes from Read.Cash?

Let's say that someone creates a token for music category in read.cash. It's value is exactly zero. No better than upvotes on Reddit. Even if your friend gets a billion of music tokens, he still has exactly zero of anything.

That depends on how the token is launched and whether or not there are any places to trade and use them. If you were to launch a Read.Cash token where token holders could receive community tokens either by airdrops or kind of an ICO where in order to get a token for communities you would need to use Read.Cash tokens. But with all that said, I can understand that the platform is built around BCH and could cause confusion.

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1 year ago

how would users come to the conclusion that the "fake" USD they got comes from Read.Cash?

You'd be surprised how often people email us asking to remove some article, because they don't agree with it and think that we support this opinion by not removing the article :) That's very easy to understand... however a user getting 100000 USD would be pretty angry, thinking that read.cash supports this token :) So, then we need to be the deciders of which tokens are worthy and which are not... we'll be lobbied night and day about each and every token... I'm afraid to imagine how much time that'd take. Frankly, as I said, it seems like a ton of hassle and nearly zero benefits. Most of these tokens are no better than if we implemented "claps" :)

There's one more thing why we don't implement claps (and tokens also) - right now users vote with money. So if you like the article - the only way to thank the author is to give him/her some money - that really stimulates the author. Imagine now there's a choice - give real money or give zero-value token you've just created :) I think we'll see zero money exchanging hands very soon. Everybody would be giving away fake tokens :)

If you were to launch a Read.Cash token where token holders could receive community tokens either by airdrops or kind of an ICO where in order to get a token for communities you would need to use Read.Cash tokens.

We can't do that, because that might be defined as a "security" and that might require us to get through very expensive processes, like the companies do before they go public. Not just that, but also do it worldwide. :) We're trying to be very careful not to create a security (as in stock market) and not to touch user's money, because these thing would require very expensive licenses worldwide.

We've experimented with doing BCH airdrops, I think it's much nicer - you're getting real money, not some zero-value letters :)

The main point is it seems implementation tokens would be detrimental to local "economy" of exchanging real Bitcoin Cash.

The only token we actually thought to support was USDH (HonestCoin), however having two ways to pay isn't really that great and we'll have to display two different US Dollars amounts, because if you have $50 BCH and $50 USDH - you can't just send $100 to yourself - you need two different addresses (or you risk sending it to non-SLP wallet, effectively burning USDH in the progress).

These are all the reasons why "SLP tokens" are in the "maybe" part of the Roadmap :)

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1 year ago

You are right in your observation that non-BCH topics get little attention, but frankly we have less than 600 users overall, most of them are BCH supporters... I think it just needs time. We have a few ideas that should improve the situation (communities being one of them, but there are a few more).

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1 year ago