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Blockport: World’s first social crypto trading platform?

 

ICO data

 

Blockport is a Netherland’s based Blockchain enterprise that aims to democratize crypto-trading and investments. The company hopes to create a sense of inclusion globally where literally anyone can start trading on cryptocurrencies irrespective of their knowledge or experience. To this effect, Blockport aims to create a hybrid social-based platform that essentially works like a digital currency exchange. In 2018, according to InWara’s ICO+STO database, Blockport managed to raise over $15 million through an ICO, to help build its hybrid platform.

 

Blockport essentially aims to assist newbies in the crypto market space, invest in cryptocurrencies. The company’s website has clear indications of these goals, as it offers digital guides on ‘how to buy’ various cryptocurrencies, broken down into simple steps which are clearly targeted at newbies.

 

Social structure on Blockport

 

Blockport claims its users can leverage its social architecture to connect with others traders online, enabling a conducive environment for bilateral knowledge sharing. Users can even mimic the trading portfolios of other Blockport users, thus allowing newbies to learn from the pros.

 

Centralized or decentralized architecture?

 

Blockport claims to bring a unique proposition to the table, a hybrid of a centralized and a decentralized exchange platform, that could bring users the benefits of both technologies.

 

A decentralized platform is impervious to cyber attacks as, hackers can’t possibly breech a peer-to-peer network due to its inherent traits, preventing any outside interference but these type of exchanges regularly face liquidity issues though. Centralized exchanges, on the other hand, are plagued with security risks. According to a report by Reuters one in every three bitcoin exchanges have suffered attacks. Perhaps the best example to demonstrate the risks associated with centralized exchanges is the infamous Mt.Gox attack in 2014. Mt.Gox was the largest Bitcoin exchange at the time and lost an estimated $460 million as a result of the cyber attack. Despite these fatal risks, centralized exchanges have some benefits like they seldom face liquidity problems as each trade is made off-chain through third-party exchanges.

 

Blockport claims to bring to the table, the benefits of both centralized and decentralized exchanges without the inefficiencies of either, through its hybrid exchange architecture that takes inspiration from these both these technologies.


You might also like this article: Polymath launches Security Token Blockchain

 

Top five cryptocurrency exchanges by volume

Top 5 cryptocurrency exchanges by volume

1-Huobi,3-ZB.com,4-Binance,5- Bitfinex, 8-Okex

Source: InWara’s crypto exchange database

 

Despite the obvious risks associated with centralized exchanges, the top five crypto exchanges work on centralized architecture.

 

Blockport to conduct an STO

 

Blockport quite recently announced its intention of raising funds through a Security Token Offering-STO, which is set to launch in March 2019. Participants will get the opportunity to buy Blockport Securities and the company aims to raise between 15 to 30 million Euros through this sale. Blockport has sought the help of Tokeny, a token issuing platform, to facilitate its STO, which will have two offerings. One for accredited investors in the US and the second for participants in Europe and other jurisdictions.

 

Key partnerships

 

Blockport has partnered with ARK to provide functional assistance to the company’s marquee asset, its hybrid exchange platform. Blockport’s platform claims to have a unique architecture that enables decentralized storage of funds on multiple Blockchains without any liquidity issues. Through this partnership, Blockport hopes to increase connectivity between Blockchains for enabling value transactions.

 

As Sebastiaan Lichter, founder and chief product of Blockport was quoted saying “Together with its community, ARK has developed the ACES project, which connects multiple Blockchains and allows for value transfers between them. Therefore, we’re exploring the possibilities of integrating ARK’s Blockchain services.” ACES integration with the current Blockport’s platform expected to happen during the initial months of 2019.

 

Competition on the horizon

 

Blockport is not the only crypto exchange out there, to realize the potential of creating a conducive environment for regular people to get into the crypto trading. The crypto market space is flooded with enterprises aiming to on-board regular people into the crypto market space, as the potential for growth is massive.

 

Coinbase is a digital currency exchange based out of California, that facilitates easy buying, selling and trading of major cryptocurrencies on its platform. Blockport’s main competition comes from Coinbase, as the latter aims to make its platform as easy and user-friendly as possible. Coinbase has also been aggressively acquiring enterprises that can improve the functionality and user-friendliness of its platform. According to InWara’s M&A database, Coinbase has done eleven acquisitions till date, the latest being the acquisition of Blockspring. To understand more about Coinbases’ strategic acquisitions check out InWara’s article.

 

Blockport could also face competition from existing crypto exchanges such as Binance, Okex etc which can easily implement some of the social trading features into its existing platform. While already some existing players like Bitstamp, Kraken and Gemini already offer peer-to-peer trading features.


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