BitMart Founder & CEO Sheldon Xia: Community Listing Markets Are The Future Of Cryptocurrency Exchanges
Too many projects fall through the cracks due to a lack of funding, liquidity, community awareness, and traction. BitMart is introducing Mission X to overcome these challenges and promote the fair distribution of funds and profits to promising projects and community-driven initiatives.
Traditional Project Fundraising
The ICO boom of 2017 taught us many things. It taught us that if anyone wanted to launch a project and needed funds, they could hold an ICO and solicit ETH contributions from investors. Successful projects often rewarded investors with hundred-fold returns on their investments, while failed projects could result in the loss of all invested funds. Project investments became a game of trial and error with investors literally throwing money at anything and everything, hoping that one project out of many would eventually succeed.
This approach is clearly inefficient and is very faulty. First of all, the success or failure of projects is often only apparent after several months, or even years, of the project launch, and generating the widespread media attention needed to successfully raise adequate funds is another challenge facing small-time project leaders and core developers. This is why BitMart, under the leadership of Sheldon Xia, is taking a more creative approach to the problem and is thinking outside the box to tackle issues of investor returns, democratic project selection, and exposure to new and improved fundraising sources.
Innovations in Exchange and Fundraising
Succeeding in the blockchain and crypto-asset trading spaces take more than charging high transaction fees and growing trade volumes. In fact, recent innovations in the online cryptocurrency exchange space have led to the development of several new models for improving the efficiency and fairness of token trading and investment. One of these innovative models, popularized by FCoin, an online cryptocurrency exchange, is the transaction-free trading model, in which the trading platform reimburses 100 percent of users’ transaction fees incurred the previous day in the form of native tokens.
This new approach to online trading has not only received widespread attention, but it has opened the door to new ways of doing things, ways that benefit individual traders and private investors instead of large, established companies and platforms.
This, in essence, is the spirit behind the recent initiatives taken at BitMart by Mr. Sheldon Xia.
The Community Listing Market
How is this being done? BitMart is pushing the envelope to create new ways and opportunities for blockchain projects and cryptocurrency initiatives to generate the funds and growth they need to bring meaningful change to the world. A large and established online exchange that has a user base of almost 500,000 and supports over 50 trading pairs, BitMart provides users with cutting-edge trading tools in Bitcoin, Ether, Tether, NEO, OmiseGo, VeChain, EOS, and more, in the form of spot trading, OTC trading, and cross-network trading as well.
Mr. Xia believes that with Mission X and the community listing market, BitMart can leverage its user base and popularity to introduce a democratic and community-driven fundraising model.
The way he explains it is as follows: Because it supports ERC-20, NEP 5, and Stellar-compatible smart contracts, anyone who wants to create a blockchain project using Ether, NEO, or Stellar can participate in the program. Projects are listed for the community to review and assess, and users can support the projects they like by investing in them using BMX, BitMart’s native token. The required limit for investment is 1 million BMX.
Projects that do not successfully raise 1 million BMX within 90 days of being pitched to the community for voting are removed from contention, and all invested funds are returned to their rightful owners.
Projects that do reach the 1 million BMX mark, however, are immediately listed on BitMart as a trading pair against BMX with a trading fee of 0.1 percent. Transaction fees generated by each pair are distributed to the project’s supporters on a daily basis. Projects whose investments fall below 1 million at any time are issued a warning and are given sufficient time to raise funds once again.
In summary, this new way of fundraising allows projects to raise funds from supporters in the form of BMX and use to list their tokens on BitMart as a BMX trading pair, and all transaction fees that the BMX market generate go directly to the users who supported the project, with successful projects entering BitMart’s main trading markets.
As a pioneering visionary in the online crypto exchange space, Mr. Xia understands that delivering user benefits is priority #1. Towards that end, Mr. Xia believes that the benefits of using a community-driven token listing and project investment initiative as outlined above will revolutionize online crypto-asset trading as we know it. Consider the following:
Democracy and merit: Because users can decide which projects they want to have listed on the exchange, only the best and most promising projects will make it to the exchange. In this way, these new project markets are self-regulated and have substantial chances of success right from project inception by generating adequate funds for the run the project and benefitting from early listing on a major exchange.
No listing fees: The community listing approach allows core dev teams and project leaders to focus on what matters: delivering value to investors, instead of focusing on reaching milestones such as exchange listings. By removing listing fees and the obstacles to being listed on a major exchange, projects can grow and develop more quickly.
Exposure and traction: This approach also gives promising projects a great deal of exposure and usage traction early on, saving on marketing costs and team overheads.
Fairness and transparency: Because trading fees are rewarded to investors, crypto enthusiasts are encouraged to perform their own due diligence before investing in projects. This not only improves the filtering of proposed projects but also improves the chances of higher returns once projects are actually initiated.
Differences Between Mission X and FCoin’s Trans-Free Mining Model
According to Mr. Xia, what is important to understand is that with the FCoin mining model, 51 % of the FCoin token supply is locked and can only be ‘mined’ via trading. When trades are executed and transaction fees are reimbursed to traders on the platform in the form of FCoin, FCoin is essentially created and the overall public pool of FCoin rises by the amount created.
With Mission X, however, the BitMart platform only uses BMX that is already available via public trading on the BitMart platform for projects. Transaction fees are still reimbursed to project supporters, but BitMart has no listing fee to begin with, and instead of a general lock-up of funds (as is true with FCoin), BMX is only locked during the fundraising phase to give projects enough runway to work on their projects and deliver milestones in successive iterations.
Mr. Xia has a team in place to screen and process applicants for project listing and selection by the general BitMart user community. If you’re interested in exploring fundraising opportunities for your blockchain project, consider Mission X and the BitMart Community Listing program.
All you have to do is submit your application by filling out the Google form here.
Because of their many benefits, there is little doubt that Mr. Sheldon Xia’s vision of community-driven trading platforms that combine the positive synergies of token economies with online exchanges are where the future of cryptocurrencies lie. Thanks to Mr. Xia’s unrelenting focus on research and development in the crypto and online exchange space and the development of Mission X, BitMart promises to deliver a democratic, fair, transparent, and efficient trading platform for projects, as well as all of the right tools, funds, and exposure needed to deliver solutions of value to the world.
To join Mr. Xia and the BitMart team in helping to grow and improve the blockchain and crypto trading spaces, we welcome you to join this ambitious initiative. Learn more at the official Website, Twitter, or the project’s Telegram.