ICO Project Coopex
What is Coopex?
Coopex is an abbreviation for the Cooperative Exchange. The exchange markets themselves as the first cooperative decentralized exchange.
Some of the top features of the exchange is going to be profit sharing, a unique liquidity solution, transparency and cooperating with the community and free token listing.
Problems with crypto exchanges today
After a successful token sale, token-based projects struggle with getting their token listed at exchanges. It is a known fact that exchanges charge up to 500,000 USD for exchange listing, which for many companies would be detrimental for their budget.
For ERC-20 tokens, listing is still free on exchange platforms like Etherdelta and Forkdelta, but these exchanges are not user-friendly, and a lot of people are therefore reluctant to use them.
There are other problems as well, it is known that several of the big crypto exchanges knowingly ignores requests of coins they don’t find “suitable” for their exchange, and projects often find themselves waiting for weeks/months for feedback on their listing request.
A good example mentioned in the Coopex whitepaper about of how crypto exchanges can destroy cryptocurrencies is the cryptocurrency Straks.
Straks paid in total 45 Bitcoin (900,000 $ at the time) for a listing on HitBTC. Although the team paid for the listing in December, HITbtc postponed the listing until May. With no crypto exchange to exchange the token for months, the token took a tough hit. The current market cap of the project is now 700,000, which means that the project spent more for the token listing than it’s current value today.
Top Exchange Features
75% of all trading fees on the platform is used to buy back Coopex tokens (COOP), indefinitely. All bought tokens will be burned, ensuring an increased value over time for the token holders. The buyback is going to happen once a month.
BNB, Binance’s exchange token has a similar buyback program. The fundamental differences are that Binance program only consists of buying half the supply, and they buy back with only 20% of the company profits.
This both incentivizes holding the native Coopex token, as well as trading more on the platform, as the holders indirectly earn more by trading.
Free Token Listing
All ERC (Ethereum) tokens will be able to be listed on the platform for free, making sure that both small and big projects can get listed on the platform as long as the community agrees. Popular blockchains like NEO and EOS will be able to list for free as well.
For other blockchains, the fee will vary depending on how much it cost to implement it in the exchange.
The platform has decided to set the trading fees to 0.20% for the maker (making the order) and 0.25% for the taker (taking the order).
Additionally, all deposits are going to be free, and withdrawals will only charge what is necessary to send the tokens (gas).
Margin and leverage trading is planned to be released late August.
Margin trading is only going to be implemented in the most liquid markets.
The specifics of the margin trading is yet to be set, but the exchange intends to provide the ability to margin trade up to 50x.
We have all seen “dead” markets on exchanges. The coin has been listed at an exchange, but there is no volume.
To fix this, Coopex is launching their own liquidity program. For a project to be eligible for the program, it needs to sell a share of their tokens for market making. With the program, accepted projects will benefit from increased liquidity.
Giving power to the users
The exchange plans to stand out by being an exchange that cooperates with its users. Users will now be able to take part in the decisions that usually lies in the management hands, such as token listing and protocol management.
The ICO is going to last until August 3
If the project hits it’s soft cap (500,000 USD), 50% of all funds collected during the ICO will go to the marketing of the platform, while the last 50% is going to the development of the exchange.
The maximum supply of tokens is set to 12 million COOP. All unsold tokens will be burned the after the ICO.
The project has set a hard cap of 950,000 USD. This might sound like nothing compared to other projects, but the team has estimated that this is all they need to fund the development, marketing and upkeep of the platform.
Investors from the USA are restricted from participating in the token sale.