As institutional interest in cryptocurrencies has started to rise, so has the demand for institutional-grade services. Although the big crypto trading platforms have started attempting to meet this demand, there are still barriers.
Among these barriers, security is one of the most critical. Even in 2019, centralized exchanges are glaring targets for hackers, with Binance, Bittrue, Bithumb, and Cryptopia all falling prey to attacks this year alone. While these incidents may not be enough to deter retail crypto enthusiasts, they are enough to make institutional investors think twice about using a centralized cryptocurrency exchange.
Therefore, a guarantee of safe custody has become one of the prime differentiators for exchanges wanting to attract institutional investors. Singapore-based ecxx has recognized this gap in the market and has been working hard on developing a platform and establishing partnerships that can meet the demands of the institutional, as well as retail markets.
Enhanced Security Features
Many exchanges offering security guarantees simply refer to cold wallet storage. However, this isn’t necessarily any concrete assurance that funds are safe. The case of QuadrigaCX, where the exchange founder died with the private keys for his company’s cold storage wallets, illustrates how much trust is required in the individuals operating the exchange.
Ecxx has teamed up with Ledger to offer its customers access to Ledger Vault. This means that rather than the exchange itself having control over the client’s funds, they’re held in the Ledger Vault, where only the customer can get access to them using a Ledger-issued personal security device. The service is available on an opt-in basis to institutional investors.
However, that doesn’t mean that retail users can’t benefit from enhanced security when trading on ecxx. The exchange uses multi-signature cold wallets for funds not secured by Ledger Vault, and also follows a strict process for releasing funds when any user requests a withdrawal.
To avoid hacks and theft, each time a withdrawal is requested, three separate departments within ecxx must approve the transaction. Separating approval across operational, compliance, and finance teams virtually eliminates the risk of foul play, making ecxx one of the safest exchanges on the market. It also offers 2-factor authentication with IO binding features and a high-grade SSL HTTPS certificate for online peace of mind.
Finally, as a Singaporean company, ecxx has partnered with the government portal MyInfo, which enables residents to manage their personal data when interacting with public and private organizations online. This means that MyInfo users can use their existing profile to access the exchange. This has the added advantage for ecxx in creating greater transparency for regulatory compliance.
Secondary Markets for Security Token Trading
Regulatory compliance is a high priority for ecxx for another reason. The exchange is also aiming to capitalize on another gap in the crypto markets – secondary markets for security tokens. Security tokens offer vast potential in the world of cryptocurrency, to enable digital trading of stocks, bonds, derivatives, and even physical assets. However, the lack of secondary trading venues is hampering development.
Ecxx is aiming for total regulatory oversight by the Monetary Authority of Singapore, similar to the Swiss SIX digital asset exchange. This provides the exchange with an opportunity to become Singapore’s go-to platform for anyone wanting to list a security token.
Earn Free ECXX Tokens
Like Binance, Huobi, and many other major exchanges, ecxx operates its own utility token as a means of accessing trading fee discounts and other benefits. Users stake tokens to become eligible for a sliding scale of discounts, up to completely free trading for the highest stakes.
After two private sale rounds, the ECXX token sale is now open throughout December. The exchange aims to sell 6 million tokens priced at $0.50 each. Users can actually get their hands on airdropped tokens by participating in the Token Challenge event currently running. It’s open to everyone, and users only need to complete a simple set of social networking tasks to become eligible for their share of free tokens.
With plenty of new exchanges coming onto the market, it’s becoming increasingly difficult for new entrants to differentiate from the competition. By offering institutional-grade security and exploiting the underdeveloped potential of the security token market, ecxx has a solid opportunity to carve a niche for itself in a crowded sector. Moreover, it could be that we see security tokens starting to take a more prominent role in the crypto space in future.