XTRD Breaks Down What the CEX.IO Integration Partnership Means
The XTRD Team Presents a FAQ and Community AMA
Two weeks ago we announced that XTRD would be entering into an integration partnership with CEX.IO, the global cryptocurrency exchange. In this article we will break down the basics through a FAQ, as well as present our recent Telegram Community AMA where we dive into the details about how this will functionally work.
XTRD/CEX Integration Partnership FAQ
- How did you first connect with CEX.IO and what struck you about the company and the team behind it?
We first connected with CEX.IO at the inception of the Xtrade project in 2017, where we envisioned CEX.IO as our partner in bringing institutional connectivity and liquidity to trading. CEX.IO struck us as a regulated, worldwide entity that is very serious about their responsibilities to their customers, with a strong commitment to compliance and a worldwide vision with outstanding staff, over 250 strong.
2. How does this joint venture with CEX.IO fit into the overall strategy of XTRD? Was integrating with an exchange always in the plans for XTRD?
As originally described in the XTRD white paper, we envisioned a joint venture with an exchange acting in the custody/KYC/regulated role, with us as the technology provider. This has now come to pass with CEX.IO, our first choice for this role at inception.
3. What do you believe is the most exciting part about this joint venture?
For XTRD, working with CEX.IO is a great opportunity to leverage the worldwide regulation, fiat on-ramps, products, custody, and exchange relationships of CEX.IO for joint product development. There are lots of possibilities for additional synergies in the future.
4. What types of licenses, partnerships, technology, etc does CEX.IO bring to the table and what does that mean for XTRD?
CEX.IO is registered in Gibraltar with a DLT license, as an MSB with FinCEN, and has obtained 15 Money Transmission Licenses in the US so far. As CEX.IO is able to do business in more regions, this expands the possibilities for joint XTRD/CEX.IO products.
5. What does this mean for the XTRD SPA product?
This means that the integration partnership with CEX.IO will allow SPA to be used by more customers around the world, with better fiat onramps — CEX.IO has GBP, USD, EUR, and RUB, in more regulated jurisdictions.
6. What part of XTRD will be kept separate from CEX.IO?
XTRD and CEX.IO are completely separate companies that are collaborating on products via an integration partnership, now and in the future.
7. How exactly will this partnership affect your day-to-day operations at XTRD?
At XTRD, we continue our day-to-day development work, business development efforts, and internal processes as is.
8. What does this mean for the XTRD community?
This partnership brings to fruition the joint venture for SPA with CEX.IO that XTRD contemplated in the white paper. We are continuing to develop technology which will benefit the crypto space in general, and increase the potential use cases for the XTRD community to leverage in their trading.
9. What are the goals for onboarding institutional clients?
When SPA is in production, it should help in business development and institutional client acquisition, along with the FIX API, and a few other products we have in the pipeline currently. Our goal is to develop an ecosystem around the XTRD technology, and leverage our partnerships and relationships to better serve the institutional community for trading and market data needs as the digital asset space grows.
10. Where do you hope this partnership brings XTRD by the beginning of 2020?
We hope to finish the SPA integration, and begin development of further joint products with CEX.IO.IO as the macro situation in the digital asset space develops further.
Telegram AMA from XTRD Community Chat
@max_lupey: Hello, what are the fees for using xtrd fix api?
There is a separate fixed monthly fee per exchange (Gemini, Bitfinex, OKEx, etc.) for market data, colocation, and cross connection, along with variable fees per message depending on the quantity of order tickets sent per month per client.
Yamen A.: If I’m understanding correctly, xtrd will also be listed on Cex? When is this happening?
We do not comment on listings, but there is a liquidity pool planned at CEX.IO to facilitate XTRD token purchases by XTRD product users.
@Barfood: what’s happening with CoinMarketCap? When will that accurately reflect token supply and price?
Thanks for pointing this out. We are reaching out to Coinmarketcap to confirm these numbers are accurate.
@MikeMPC: How is the liquidity pool going to work, will it be a listing on CEX.IO where clients will buy tokens from CEX.IO as they would any other token?
That is the plan at the moment, but it has yet to be finalized.
@MikeMPC: Will there be a method for clients to pay in fiat that simply market buys XTRD from the liquidity pool, similar to how Origin Trail does this on Bittrex?
Current functionality does not encompass this, but it is being contemplated at this time.
@MikeMPC: How will they redeem their tokens if there isn’t a system as outlined in #2?
XTRD tokens are redeemed for XTRD services, not the other way around.
@MikeMPC: Will there be some sort of transparency provided for the token flow be it from #2 or #3? See how Bitfinex (LEO) or Bgogo (BGG) are handling transparency with their token burns; they actually post the transactions where this happens. I know you guys aren’t burning and that there is concern WRT client confidentiality, but seriously, clients can buy tokens with a fresh wallet or an exchange account and we wouldn’t be able to tell who it is, and usage would be more transparent. I think the confidentiality aspect is an abstractable-away non-point and needs to be dealt with.
We are not burning tokens, and given confidentiality we cannot publish a client’s token usage statistics. The XTRD token is a utility for payment of XTRD services.
@MikeMPC: Will you be implementing the staking functionality (maybe you call it something else) where holding a certain quantity of tokens — or lets call it something better, purchasing a Silver, Gold or Platinum teir membership — will get discounts on services and with the spirit of #4, will we be able to see that system in action? I mean, this is ETH, we should be able to see it in action, that’s not really a question, is it?
Currently there is a 40% discount for staking 50,000 tokens for services. Again, we cannot publish a client’s token usage statistics.
@albertcamus7111913: why won’t XTRD be burning tokens?
The XTRD token is not meant for speculation and we do not envision engaging in that type of activity.
@phillywebguy: Will xtrd tokens be used to pay discounted trading fees, the way BNB is used on Binance?
Correct, the XTRD token is a utility token for payment of XTRD services. With regards to CEX services, that has not been determined at this time but we are mutually considering this possibility.
Blake A: I’m not sure if this has been answered yet. The article states that CEX.IO will host a liquidity pool for XTRD. How will the price be derived for the pool? Will it be set higher than market or will institutions be able to buy it at market price without affecting the price?
We cannot comment on the price of the XTRD token, it is not designed for speculation. Service costs are marked to market.
@RoReilly12: when is this cex partnership going live?
The partnership has been announced and is currently in the integration/technical development stages.
@Yogibear123: WHY — is this deal in the best interest of XTRD token holders & XTRD product users for CEX.IO and non-CEX.IO users
This integration partnership expands SPA for XTRD product users, as well as for CEX.IO users to leverage the SPA product.
@Yogibear123: WHEN — will Alex and Serg be in post and XTRD services be integrated/live for CEX.IO institutional customers
Per current development schedules, we anticipate the SPA product to be live by the end of 2019.
@Yogibear123: WHAT — can XTRD token holders expect in terms of both CEX.IO and standalone product development
Currently SPA is the main product we are focusing on under a joint XTRD/CEX effort, but we are looking forward to developing more products in the joint CEX.IO/XTRD ecosystem as the market matures. We cannot comment with regards to individual CEX.IO product roadmaps, however the XTRD product roadmap is available on https://xtrd.io.
@Yogibear123: HOW — will the partnership provide liquidity to the token and token access to non-institutional CEX.IO customers
The XTRD utility token will be accepted as a means for payment of services of joint institutional XTRD/CEX.IO products. There are currently plans to facilitate the purchase of the XTRD tokens for joint XTRD/CEX.IO services at CEX.IO.
@Yogibear123: WHO — will be responsible for building a pipeline of non-CEX.IO customers for XTRD given your new roles
We maintain dual roles, with a dedicated development staff that continues to be fully XTRD-focused.
@Yogibear123: Looking forward to the medium post. Given your new roles I have questions about business and technical development outside CEX.IO, token liquidity beyond CEX.IO institutional investors and effect of the CEX.IO partnership on product development for non-CEX.IO customers. The CEX.IO deal is great btw, congrats on the deal, so not trying to FUD, just curious about how it will all work.
We are continuing our regular business and product development activities as XTRD. This integration partnership is a way to bring SPA forward with CEX.IO, a regulated, trusted partner, while keeping an eye towards other products to come. Thank you for the congratulations, we are excited as well!