Leading European exchange EXMO announces token sale to fund expansion into margin trading
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First launched back in 2013, EXMO has grown to become one of the top global cryptocurrency exchanges and a leading player in Europe. Over the last year alone (2017) it saw a 142% increase in users. In order to continue this rapid growth the EXMO exchange now plans to introduce margin trading to its platform, as well as obtaining additional licenses, increasing the number of currency pairs traded, adding futures contracts, and other planned improvements.
Margin trading is when traders borrow funds so that they can trade with a larger amount of capital and therefore magnify their gains and losses. It has proven to be a popular feature among cryptocurrency traders, just as it is within traditional financial markets. The loans required by these margin traders will be provided by EXMO itself, and to fund these loans the company has announced that it will run a crowdsale for its own EXO token in the first quarter of 2018.
The EXMO exchange itself is already well established as a profitable enterprise, with some impressive milestones behind it. These include over 900,000 registered users and 90,000 daily visitors to the site, 2,000 new registrations every day and 160,000 Bitcoin in monthly volume. Throughout its 4 years in operation it has proven itself to be a secure, reliable and user-friendly cryptocurrency exchange.
Starting on 26th February 2018 EXMO will launch a crowdsale for its own EXO token. A maximum hard cap of 300,000,000 tokens will be sold during this sale, which will run for exactly one month, at a price of $1 per token.
At least half of the money raised during this token sale will go towards covering the demand for margin loans on the EXMO exchange. If the hard cap is not reached, then a larger proportion of the funds will be allocated to this purpose. Additional capital will be used to further develop and grow the platform.
The primary purpose of the token is to share the profits generated by margin trading with investors whose capital makes it possible. Half of all profits generated in fees or interest paid by margin traders will be returned to token holders in the form of monthly dividends. These dividends will start accruing to token holders soon after the end of the crowdsale, beginning on 30th April 2018.
In addition to these dividend payments token holders will also benefit from increases in the value of other cryptocurrencies held by the exchange to be used for margin loans. Given the strong performance of Bitcoin and other top cryptocurrencies over recent months this is a nice feature which may make it easier for some investors to part with their precious cryptos to invest in this opportunity.
Another benefit for token holders is a guaranteed token buyback offered by EXMO, which substantially reduces the risk of loss as a result of participating in this crowdsale.
Following the crowdsale the EXO tokens will be tradeable on the EXMO exchange, and as they are ERC20 Ethereum tokens you can also withdraw them to your own wallet for storage.
Tokens can be purchased using Bitcoin, Ethereum, Litecoin, Dash or ZCash cryptocurrencies, with the exchange rate fixed at the moment your payment confirms.
For more information about EXMO’s ambitious future plans and for the full details of the token sale please take a look at the following links: