XTRD Update: July 2, 2018

Summary

  • XTRD FIX API Product Update — June 30th
  • What Cryptocurrency Can Learn From Wall Street
  • Hardware Wallets Poll
  • XTRD events are on crypto calendars
  • Exclusive Weekly crypto market update from Steven Aitchison
  • Upcoming events

XTRD FIX API Product Update — June 30th

Summer is usually associated with vacations, trips, and overall relaxation. But not for the XTRD team! We are using this time to be prepared for the upcoming autumn run. First of all, we released the new version of FIX API gateway with added Binance support. So now our clients can receive normalized market data and trade on this exchange through our NY4 servers. Find more details in the XTRD FIX API Product Update — June 30th, 2018 http://bit.ly/2IGa3Va

What Cryptocurrency Can Learn From Wall Street

The groundbreaking potential of the cryptocurrency space has been well-documented over the last couple years. The maverick-like nature of the new industry is refreshing, and its non-conforming characteristics appealing. Yet, even the most radical innovations and industries can learn from their more established, monolithic counterparts that have come before them. When it comes to crypto, one of the primary sectors it can model is one of the largest, stablest sectors on the planet: Wall Street.

Read about 4 of the biggest lessons cryptocurrency can take from Wall Street in our new article: http://bit.ly/2Nh5ynu.

Hardware Wallet Poll

Take part in a hardware wallet poll. The question is “How do you sign your Ethereum transactions?” Please choose one of the four offered options or add your own option in comments: http://bit.ly/2tIKQEg.

XTRD events are on crypto calendars

XTRD events are now on CoinMarketCal and CoinsCalendar. Please click these links and then click “Real” for each event, this will help us to promote the project via these channels.

Exclusive Weekly crypto market update from Steven Aitchison

Another exclusive weekly crypto update by Steven Aitchison — Youtube blogger and experienced crypto trader. This update contains weekly market overview, the most important cryptocurrency news from the last week and useful crypto trading tips. Please find more details in our blog post: http://bit.ly/2Kojiix.

Upcoming events

To increase awareness of our project and attract more clients, partners, and new community members, XTRD will participate/speak at these events:

Feel free to stop by our exhibition booths and say “hello” or ask tough questions during roundtables.

What Cryptocurrency Can Learn From Wall Street

The groundbreaking potential of the cryptocurrency space has been well-documented over the last couple years. The maverick-like nature of the new industry is refreshing, and its non-conforming characteristics appealing. Yet, even the most radical innovations and industries can learn from their more established, monolithic counterparts that have come before them. When it comes to crypto, one of the primary sectors it can model is one of the largest, stablest sectors on the planet: Wall Street.

Instead of reinventing the wheel, taking the best practices from the financial industry and tailoring them to this emerging space can truly take the technology to infinity, and that’s exactly what we’re determined to accomplish here at XTRD. Based on our years of experience in the financial sector, we are applying proven, battle-tested practices that Wall Street has to offer and integrating them into our suite of products designed for the crypto space. By unifying crypto exchanges with our software, big players such as hedge funds, financial institutions and algorithmic traders can finally get fully immersed in the industry, resulting in high liquidity and lower fees for end users.

On that note, here are 4 of the biggest lessons cryptocurrency can take from Wall Street.

1. Unification Means More Money

Unifying crypto exchanges won’t only be advantageous to the large institutions involved, it will also benefit all other parties across the board through lower fees, faster trades and much more. Additionally, with less market volatility, parties with much bigger pockets will begin to invest and trade throughout the space. With more money being circulated throughout the industry, the floodgates of the mainstream adoption of cryptocurrency will be opened. This will lead to unprecedented opportunities for individuals from all walks of life in the form of new business ventures, investment opportunities, startup funding and more.

2. With More Money Comes More Security

Unfortunately, good intentions don’t always equate to good behavior. With complete decentralization and a lack of oversight in crypto, corruption becomes much more likely. Whether in the form of unscrupulous attackers hacking into a user’s wallet or a company having the ability to charge exorbitant trading fees for their coin, little can be done given the low volume of buyers, sellers and key decision makers within the space. In fact, according to research conducted by the University of Singapore and the University College of London, out of 1 million smart contracts examined, 34,000 were found to have vulnerabilities, making it clear that security needs to be a priority for crypto.

As more financial institutions begin investing in crypto, these same institutions will want to protect their assets, and will more than likely go to extraordinary measures to ensure their assets are secure. This will likely equate to more scrutiny, technological advancements, and checks and balances put in place in order to maximize protection of a user’s coins.

3. Leveraging a FIX-based API

In 1992, Bob Lamoureux and Chris Morstatt developed a monumental technology that replaced the clunky, manual communication traditionally used in equity trading with electronic communication, beginning with Fidelity Investments and Salomon Brothers. This enabled seamless communication and allowed data to help make optimal trading decisions for buyers and sellers across different markets. FIX API is a proven method of connecting markets that has become the industry standard since its inception.

Yet, despite the widespread popularity of the crypto space, no FIX equivalent exists to bridge the gap. This is one of the problems we’re addressing here at XTRD. With our low latency, FIX-based API, crypto markets will finally be able to be connected in one convenient place.

4. These Problems Will Not Go Away

Ignoring the problem of saturation with no real order or organization altogether will not make the issue disappear. According to Investing.com, as of May 2018 there were over 1,600 cryptocurrencies listed on the market, and this number only grows larger with each passing month. Without a proper, all-encompassing solution to the high volume of coins, liquidity will continue to remain low as the number of buyers and sellers remains relatively small.

The solution here is simplicity. With simplicity and consistency in a market comes less volatility. In conjunction with lower volatility, adoption rates will increase as well, making it clear that the faster crypto exchanges are unified, the easier the industry will be able to soar to new heights.

The cryptocurrency industry is a lot of things: exciting, promising and innovative. Yet, one thing it certainly is not is streamlined, efficient or user-friendly. By the same token, the speculative nature of the market has made it clear it’s far from perfect. By applying a handful of the most reliable practices of Wall Street to cryptocurrency, the industry’s full potential will be able to be unlocked, and previously immeasurable opportunities for people across the globe will be made possible.

XTRD Product update from Equinix NY4 data center

XTRD FIX API Product Update — June 30th, 2018

Summer is usually associated with vacations, trips, and overall relaxation. But not for the XTRD team! We are using this time to be prepared for the upcoming autumn run.

First of all, we released the new version of FIX API gateway with added Binance support. So now our clients can receive normalized market data and trade on this exchange through our NY4 servers.

There are two exchanges in our “hot list” to be added in the next release — OKEx and Bittrex.

Secondly, we are also working to add more functionality, directly not related to exchanges integration.

To add more value into our real-time normalized market data feed, we decided to add crypto-related news streamed inside the same FIX session!

Information is one of the crucial components of crypto trading. NewsEdge (by AquireMedia) will provide us with real-time updates and analytics(!) about all events that might have an impact on the industry. XTRD will transform NewsEdge wire format into FIX protocol News message(35=B) and then stream to our clients.

Are you looking to build crypto-trading terminal or run trading desk? We get you covered with real-time normalized market data and news coming from the one reliable source.

Despite the fact, that most of the XTRD tech team is hard-core backend developers, we understand entirely that interactions with users are also important. Not all people enjoy black and white terminals and command line interfaces (what a shame…).

In order to provide a more human-friendly interface for the clients, we decided to improve part of the back-office application that used to perform payments in XTRD tokens.

The end goal is to make our clients’ life more comfortable when they are transferring XTRD tokens for obtained services — execution, market data, and cross-connections.

Serg Gulko tried to record a brief video from our location in Equinix NY4 data center. The idea was good but realization completely failed. The only one thing you can learn from this video is the level of noise, created by all these machines.

XTRD Update: June 25, 2018

Summary

  • Alex presentation in Israel
  • News from Crypto Rico
  • New — Lex Sokolin from Autonomous Research answers our questions
  • XTRD events are on crypto calendars
  • Connecting Crypto: Why Unifying Crypto is Beneficial For All
  • Exclusive Weekly crypto update from Steven Aitchison
  • Clarity from the SEC — Bitcoin and Ether Likely Fail the Howey Test
  • Upcoming events

Alex presentation in Israel

XTRD CEO Alex Kravets presented at the Alchemist Money Summit in Tel Aviv last week upon the invitation of Ethereum co-founder Steven Nerayoff, discussing institutional entry into the cryptocurrency markets.

News from Crypto Rico

XTRD CTO Serg Gulko reveals the mystery around recent XTRD Puerto Rico trip in a short team update: http://bit.ly/2KhS5xd.

New — Lex Sokolin from Autonomous Research answers our questions

Lex Sokolin, XTRD advisor, Autonomous Research Fintech Strategy Director and Autonomous NEXT creator has shared his opinion on what will be the catalyst and commensurate timeline for institutional capital entry into the crypto space:

“There are several layers to institutional maturity. One is the entry of institutional investors, like large ETFs and mutual funds, into the space. Think about this as manufacturing of financial product. In order for this to happen, the manufacturer needs three things: custody, liquidity and the removal of regulatory overhang. While the value chain of custodians may indeed fundamentally change in response to decentralized networks, traditional investors still need legal custody of these assets. So the industry is working on what are essentially translation mechanisms of hardware and software (i.e., hot and cold storage) into accounts on a custodian that a fund can use. Once you have this, administration, taxes, performance reporting will follow.

Second, current trading happens on about 200 exchanges and another 50 (or more) over the counter venues. This means that markets are shallow, pricing is different across venues, and large trades are hard. Projects like Xtrade and others are tackling how to build the correct layers to connect these disjointed markets. And third, institutions need to remove the fear that regulation will make these assets uninvestable. In some way, it doesn’t particularly matter how the pie is sliced, as long as the risk of something unexpected is taken away.

Even more interesting is the maturity that will allow for these manufactured financial products (i.e., ETFs, funds) to be distributed in the regular wealth management ecosystem. This, I think, is more important longer term. Funds travel a long road from exchanges to broker/dealers to financial advisors and to consumers. On this road is asset allocation software, risk assessment, manager selection, performance reporting, financial planning, and roboadvisors. But until we have the underlying instruments ready, the rest cannot move forward.”

XTRD events are on crypto calendars

Starting from this week we will submit all the XTRD related events or the events we plan to visit on several crypto calendars, such as Coinmarketcal. Please support us by clicking the “Real” button, this will help us to promote our project via these channels. For now we’ve submitted three conferences we plan to visit and present with a booth/on stage:

Please click each of these links and then click “Real” in the “Validation” block on the right side of the page.

Thank you in advance!

Connecting Crypto: Why Unifying Crypto is Beneficial For All

At XTRD, we believe that unifying crypto in a strategic way will help to address its problems and will be beneficial to all parties involved. By fusing the best practices of Wall Street, one of the most robust and stable sectors on the planet, with this emerging and exciting space, an entirely new level of potential is possible. Find more thoughts on that in our new article: http://bit.ly/2yvZRz3.

Exclusive Weekly crypto update from Steven Aitchison

Another exclusive weekly crypto update by Steven Aitchison — Youtube blogger and experienced crypto trader. This update contains weekly market overview, the most important cryptocurrency news from the last week and useful crypto trading tips. Please find more details in our blog post: http://bit.ly/2tCPrrl.

Clarity from the SEC — Bitcoin and Ether Likely Fail the Howey Test

Great new article by our friend Daniel G. Viola, Partner of Sadis & Goldberg, LLP — Clarity from the SEC — Bitcoin and Ether Likely Fail the Howey Test. Daniel is the Head of the Digital Asset and Compliance Groups at his firm and is also the founder of the Crypto Asset Webinars and the Blockchain Shift Conferences.

Upcoming events

To increase awareness of our project and attract more clients, partners, and new community members, XTRD will participate/speak at these events:

Feel free to stop by our exhibition booths and say “hello” or ask tough questions during roundtables.

Clarity from the SEC — Bitcoin and Ether Likely Fail the Howey Test

By Daniel G. Viola, Partner of Sadis & Goldberg, LLP, a New York based law firm. Daniel is the Head of the Digital Asset and Compliance Groups at his firm and is also the founder of the Crypto Asset Webinars and the Blockchain Shift Conferences.

On May 1, 2018, the Wall Street Journal reported that while Bitcoin escaped government oversight as a security, regulators were examining whether other widely traded cryptocurrencies should be regulated as securities. In particular, Ether, the world’s second most valuable cryptocurrency after Bitcoin. This analysis typically turns on whether the founders of the virtual currency exert significant influence over their value, similar to the way a company’s stock price is dependent on its management team. Critics to this position argue that the analysis depends on how decentralized the organization is. For example, with Ether, since it has become highly decentralized, it should not be deemed a security because an owner of Ether is not relying on the efforts of the founders of Ether to experience a profit from their purchase of Ether.

On June 14, 2018, Mr. William Hinman, the Director of the Division of Corporation Finance at the U.S. Securities and Exchange Commission (the “SEC”) seemed to agree with the critics and concluded that Ether , the cryptocurrency of the Ethereum network, is likely not a security and is therefore likely not subject to the requirements of U.S. securities laws. Of course, a non-security can be offered and sold in a way that causes investors to have a reasonable expectation of profits based on the efforts of others. For example, when a Bank Certificate of Deposit, which is generally exempt from being treated as a security under Section 3 of the U.S. Securities Act of 1933 (the “Securities Act”), is sold as a part of a program organized by a broker who offers retail investors promises of liquidity and the potential to profit from changes in interest rates, then this instrument can be part of an investment contract and defined as a security, as set forth in Gary Plastic Packaging Corp. v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 756 F.2d 230 (2d Cir. 1985).

Under Section 2(a)(1) of the Securities Act, a security includes “an investment contract.” See, 15 U.S.C. § 77b. An investment contract is an investment of money in a common enterprise with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others, such as a founder or promoter of a company. See, SEC v. Edwards, 540 U.S. 389, 393 (2004); SEC v. W.J. Howey Co., 328 U.S. 293, 301 (1946); see also, United Housing Found., Inc. v. Forman, 421 U.S. 837, 852–53 (1975) (The “touchstone” of an investment contract “is the presence of an investment in a common venture premised on a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.”). This definition embodies a “flexible rather than a static principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits.” Howey, 328 U.S. at 299. The test “permits the fulfillment of the statutory purpose of compelling full and fair disclosure relative to the issuance of ‘the many types of instruments that in our commercial world fall within the ordinary concept of a security.’” Id. In analyzing whether something is a security, “form should be disregarded for substance,” Tcherepnin v. Knight, 389 U.S. 332, 336 (1967), “and the emphasis should be on economic realities underlying a transaction, and not on the name appended thereto.” Forman, 421 U.S. at 849.

In order for an arrangement to be deemed an investment contract, it must qualify under all three (3) prongs of the Howey Test. See also, SEC v. SG Ltd., 265 F.3d 42, 48 (1st Cir. 2001), holding that all the factors must be present in order for an investment contract to meet the statutory definition of a “security.”

XTRD Update: June 18, 2018

Summary

  • XTRD has launched post TGE Bounty campaign
  • XTRD + OKEx Rewards Programme
  • Exclusive Weekly crypto update from Steven Aitchison
  • Upcoming events

XTRD has launched post TGE Bounty campaign

XTRD post TGE bounty campaign starts on June 18th, 2018 at midnight UTC+0, and will end on and will end on September, 09, 2018. We plan to distribute 1,904,914 XTRD tokens in this round. You can find all the rules and more details in our bounty thread on Bitcointalk: http://bit.ly/2MwxiV7.

Exclusive Weekly crypto update from Steven Aitchison

Another exclusive weekly crypto update by Steven Aitchison — Youtube blogger and experienced crypto trader. This update contains weekly market overview, cryptocurrency news and crypto trading tips. Please find more details in our blog post: http://bit.ly/2K3xgWb.

XTRD + OKEx Rewards Programme

We are happy to announce that to broaden our partnership, we have launched a rewards campaign for those who create a new OKEx account using the XTRD link. Please find more details in our blog post: http://bit.ly/2tjw0Uz.

Upcoming events

To increase awareness of our project and attract more clients, partners, and new community members, XTRD will participate/speak at these events:

Feel free to stop by our exhibition booths and say “hello” or ask tough questions during roundtables.

XTRD Update: June 11, 2018

Summary

  • XTRD Community Update — June 11th, 2018
  • New — Exclusive Weekly crypto update from Steven Aitchison
  • Post TGE Bounty campaign announcement
  • Upcoming events

XTRD Community Update — June 11th, 2018

The XTRD team recently traveled to Hong Kong for several high level meetings. XTRD CEO Alex Kravets will be speaking at Alchemist Money Summit, held in Tel Aviv, Israel, June 17–18. We are continuing to explore different partnerships and work on FIX API. Please find more details in our blog post: http://bit.ly/2LGNzFs.

New — Exclusive Weekly crypto update from Steven Aitchison

We’re happy to present you with our weekly crypto update by Steven Aitchison — Youtube blogger and experienced crypto trader. This update contains weekly market overview, cryptocurrency news and crypto trading tips. Please find more details in our blog post: http://bit.ly/2t1V2aK.

Post TGE Bounty campaign announcement

We have finished all preparations for launching the XTRD post TGE bounty campaign. All the announcements will be made later this week. Stay tuned!

Upcoming events

To increase awareness of our project and attract more clients, partners, and new community members, XTRD will participate/speak at these events:

Feel free to stop by our exhibition booths and say “hello” or ask tough questions during roundtables.

XTRD Community Update — June 11th, 2018

The XTRD team recently traveled to Hong Kong for several high level meetings, one of the most impressive organizations we met with was CoinSuper, an institutional based exchange with fiat trading capability and a highly regarded team, the CEO was President of UBS Asia.

XTRD CEO Alex Kravets will be speaking at Alchemist Money Summit, held in Tel Aviv, Israel, June 17–18. Alchemist Money Summit Tel Aviv will bring together more than 60 speakers from North America, South America, Europe and Asia Pacific. This Summit is designed for those interested in the evolution of the Blockchain economy. Event co-hosts are Internet Pioneer, Jeff Pulver and Blockchain Pioneer and ICO creator, Steven Nerayoff.

XTRD Product and Partnership Update

The easiest way to describe this is “work as usual”.

Our team is working to deliver highly-demanded Binance connector followed by Bittrex and OKEx. We discovered that we can easily handle all instruments traded on Binance in terms of managing orders books in a real-time and keeping historical market data. This means that instead of the original idea of providing only ETH, BTC vs fiat pairs for trading, XTRD will give access to the vast majority of tokens.

We are continuing to explore different partnerships that might bring more value to crypto community. One of them is possible co-operation with Blockchain Terminal. It’s still a bit premature to articulate about it’s exact nature but both companies are seeing a lot of synergies and ways how we can work together.

XTRD is looking to extend existing FIX API by providing crypto-related real-time news sourced from one of the industry-leaders — NewsEdge.

FIX protocol has special message times designated exactly for news delivery so, with market data, execution, and news coming from a single provider — XTRD might become a one-stop shop for graphical-rich trading platforms.

Lessons Learned from Titanium Blockchain — A Failed ICO

By Daniel G. Viola, Partner of Sadis & Goldberg, LLP, a New York based law firm. Daniel is the Head of the Digital Asset and Compliance Groups at his firm and is also the founder of the Crypto Asset Webinars and the Blockchain Shift Conferences.

Not all offerings of tokens are improper, and when conducted in accordance with federal and state securities laws, can be a positive source of capital for entrepreneurial start-up companies. The U.S. Securities and Exchange Commission (the “SEC”) continues to aggressively investigate fraudulent offerings and to protect investors from alleged wrongdoing. For example, on May 29, 2018, the SEC issued a press release announcing that it obtained a court order halting an ongoing fraud involving an initial coin offering (“ICO”) that raised as much as $21 million from investors in and outside the U.S. The SEC also convinced a court to approve an emergency asset freeze and appoint a receiver for Titanium Blockchain Infrastructure Services Inc. (“Titanium”), the firm behind the alleged scheme. Titanium was also the subject of a “wallet hack” in February 2018, resulting in a theft of a large supply of their token supply. Clearly, ICO issuers must impose proper security precautions to avoid site and wallet hacks. Investor confidence demands a secure environment in order to promote trust. Moreover, Titanium also highlights the importance of investor due diligence and presents a number of valuable marketing lessons that legitimate ICO issuers can learn from.

In general, ICO issuers should not use testimonials in their offering documents or otherwise. Testimonials are suspect for a number of reasons. You could easily misinterpret the tone of a testimonial or leave out important qualifications from a person’s testimony about your product or service even if you have the best of intentions. In addition, if you fail to obtain the written permission from the person providing the testimonial, then you could risk disclosing personal information about the person’s tastes or preferences in violation of privacy laws. Finally, SEC registered investment advisers are strictly prohibited from using client testimonials in their marketing materials as prescribed by specific SEC rules under the Investment Advisers Act of 1940, as amended. These rules would apply to investment advisers offering limited partnership interests or security tokens to investors.

In the SEC’s press release on Titanium, it reiterated warnings to ICO investors about the importance of conducting due diligence on ICOs and their principals and how a fraudulent ICO issuer can deceive investors using social media outlets. Note the following quotes from Robert Cohen of the SEC:

“This ICO was based on a social media marketing blitz that allegedly deceived investors with purely fictional claims of business prospects,” said Robert A. Cohen, Chief of the SEC Enforcement Division’s Cyber Unit. “Having filed multiple cases involving allegedly fraudulent ICOs, we again encourage investors to be especially cautious when considering these as investments.”

Lessons Learned: Issuers should only publish truthful representations in their marketing material, especially if they blast out their representations using social media. Issuers should also confirm, with securities counsel, the ability to market to the general public and the placement of proper risk disclaimers in their marketing material, prior to starting a marketing campaign, since some offering laws preclude an issuer from advertising the sale of securities to the general public. Avoiding testimonials and sales puffery can also help mitigate claims of offering fraud and violations of federal and state antifraud laws. Using industry logos without permission or promoting yourself as an expert without any actual certificates or degrees to support your claims will also attract negative regulatory scrutiny and will be viewed as unprofessional by prospective institutional investors. Finally, issuers must carefully consider the Howey Test when analyzing their offerings. The SEC also sued Titanium for not registering their offering or relying on a valid offering exemption. In the complaint against Titanium, the SEC requested the following sanctions: preliminary and permanent injunctions; return of allegedly ill-gotten gains plus interest and penalties; and a bar against the principal of Titanium to prohibit him from participating in offering digital securities in the future. If you have any questions, please call Dan Viola at 212–573–8038.