Worried about the regulatory crackdown whip on exchanges? Xchange thinks they found the loophole.
mountainman last edited by mountainman
As more and more federal authorities seek to get their hands on the crypto currency market by banning and regulating exchanges, the community will continually look for ways to preempt the crackdowns and free the markets, allowing it's users to trade the way they want to when they want to.
Enter Xchange (XCG). Yes it's another Cryptocurrency, one you've definitely never heard of, yet they have an innovative idea that might just change the way we trade.
What Uncle Sam can never control is OTC trades. That's Over-The-Counter trading, direct person to person (P2P) trading - highly risky to do however, if you don't know the person at all. Of course to help mediate that one can always use a 3rd party escrow service - and these services are starting to pop up slowly (see the trend coming?) as a way to make P2P safe and fail proof.
This is what Xchange is doing at it's core but inside the wallet itself (intrigued?). They've actually got a patent pending from the USPTO for the in-wallet bit. So, I know what you are thinking - who cares I can get an escrow done anywhere, yeah I did too at first - until they tied in this next piece.
In-wallet auction. Wait, what? Huh? Auction?
Yes, they are essentially using the backend escrow tech to execute auctions. Think eBay for Crypto. As a seller from inside the XCG wallet, you set the coin you wish to auction off, the time you want the escrow service to hold your private keys (Goodbye exchanges that get hacked or devs that run with the keys!), and an option to set a 'buy it now' price for your coin. Oh did I mention you can select which coin you will be willing to accept as payments? The best part is, as the seller you don't even need to register on their front end web page. Only buyers will need to do that. Talk about anonymous. They are also patent pending on the in-wallet auction piece too.
The buyers will then be able to bid on any sells or 'buy it now' and pay the escrow wallet designated by the purchase. At that point the P2P transaction is completed and you've got your trade done. Regulate that!
A quote from the dev about their upcoming hybrid-exchange auction service, " Now the world wide web will be able to bid or buyout coins from miners and holder's directly. No joining fee, no max withdraw, no min deposit, no withdraw fee, no charging dev's or coin community bucket loads of BTC to list them. The power is yours, the asset is yours and we think it should be like that! No more left over coins in exchanges."
Eventually according to the roadmap their wallet will be multi-coin capable so 1 wallet to rule them all. They've also cleared the KYD process (Know Your Developer) which legitimizes the project.
As of now, they have been flying under the radar. The application for the closed beta ends today (8/24), so be sure to check out their bitcointalk, discord or twitter if you want to get your eyes on the upcoming tech.
Whether or not the crackdown happens will remain to be seen, but at least there are companies like Xchange who are hedging their bets against a potential onslaught of naysayers. The world will be watching and waiting, but until then - XCG will be one to watch.