No matter if you’re looking to trade cryptocurrency or just make an investment, you can’t avoid a crypto exchange. They come in all shapes and sizes, each with its advantages and disadvantages. If you are serious about your investment, you’ll certainly have accounts on more than one exchange. Here’s where Evgeniy Grachev’s Tokenplace can come in handy and become your one place for all operations on crypto-exchanges from start to finish. As the co-founder and business development executive of the platform, he’s joining us today for an interview, so let’s hear him out!
Hello, Evgeniy, it’s great to have you here! To get started, your trading platform will act as an aggregator for exchanges that allows you to choose the best deals on the market. I bet many crypto traders need something like this! Can you tell us more about your project?
We’re entering the market at a time when the technology has matured. Our team designed a great product that will be a cryptocurrency trader’s homebase from start to finish. In the bigger picture, we hope products like ours will drive faster acceptance of digital assets as a class. This goal is reflected in our funding model, which ties the digital token to real-world valuation through a cross-coin architecture. But of course, the most important thing is building a community. Our tools will become truly powerful once there is a great group of users.
What’s the status of Tokenplace? What has been released, and what new features are in development right now?
We’re looking to have people start using our product in the coming weeks. In terms of fundraising, we are continuing to make connections with investors and advisers, and we’re planning a crowdfunding campaign in the coming weeks. The key factor is forming a strong community of users and backers.
It seems that you’re going to build your project in four stages. What is the first stage and what exchanges will initially be integrated? How difficult is it to add a new exchange?
We’re starting the process by bringing our product to market. Eight exchanges are already on board: Binance, Bitstamp, HitBTC, Huobi, Coinbase Pro, Poloniex, Bitfinex, and Bittrex. We originally planned to launch with five, so we’ve exceeded our expectations.
The next goal for stage one will be to attract a community of users who already have exchange accounts, so they can start to manage them in one place in a cost-effective way. They’ll generate an API key on the exchange and just copy/paste. Once we get the ball rolling, we’ll start adding exchanges and expanding our toolkit. Aside from more exchanges and increasing liquidity, stage two will introduce a terminal wallet for easy withdrawals and deposits, as well as an atomic swap engine that enables quick transfers between cryptocurrencies without an intermediary.
The most exciting feature is the common KYC procedure – as we understand it, you have to validate your identity only once on Tokenplace then you’ll be able to trade on all the supported exchanges without the need for individual accounts. What should I do to pass your KYC validation, what documents will be required?
Yes, one of the challenges facing traders today is the laborious and repetitive KYC process on multiple exchanges. This functionality will be fully realized at the final stage of our roadmap, at which point Tokenplace will truly become an aggregator in the full sense of the word.
In essence, we will be able to offer our users access to the liquidity of the entire market. What really gets us going is the idea that all of this is under the hood, and the user simply gets behind the wheel of a comfortable, powerful machine. We want our community members to be able to focus on trading without having to worry about the inner workings. The KYC process itself will involve a pretty standard set of steps for user verification.
Your users are executing the trades themselves, directly from your interface. But how are you executing the orders on exchanges? Do you have a pool of liquidity on every exchange instead of sending funds back and forth? Can you explain the process in simple, less-technical terms?
There is a pool of liquidity in our primary account, as well as on each of our corporate exchange accounts. Our Token Trade smart engine tracks prices on all exchanges and facilitates trade-splitting to get the best prices for high-volume orders. It is also responsible for maintaining an optimal balance between the different pools of liquidity. Smaller orders may be executed through the primary account, while larger orders or those with less common trading pairs will go through the exchange accounts.
The intermediary between all the accounts is TOK. Our global multi-currency trading engine is the heart of the project, and TOK is what allows it to operate nimbly within the network of exchanges by acting as a transport cell between liquidity pools. It’s a powerful tool that is now on the verge of coming to life. We are already doing a lot and are confident that our roadmap timeline is on the conservative side.
You are introducing a new strategy, the “Cross-Coin Architecture” which will ensure that your users can stay on top of market shifts. Can you tell us more about the functions of TOK and TOP tokens in this new model?
The aim of the strategy is to create a system where everyone has an interest in the growth of the community. The cross-coin architecture links the price of TOK, the utility token, to the real-world valuation of the company. This stabilizes the asset, de-linking it from the volatility of Bitcoin. It also brings the digital asset value in line with the real-world valuation of the company, which is mostly a function of the size of the user base.
So TOP is the security token that represents the company’s real-world value, and the cross-coin architecture balances TOK with the help of TOP. A large portion of TOK is held in reserve to provide liquidity for the system. Holders of TOK are eligible for discounts on trading. The more the community grows, the greater the usefulness of TOK, and its link to TOP’s real-world valuation makes it more attractive as a cryptocurrency.
The TOP security token will act as the primary funding source for Tokenplace. Is it as profitable for potential investors or is it for you as a company?
We value our investors, and we are doing everything we can to provide them with great returns. We’ve already had productive feedback from our early investors, and we’re currently tailoring our strategies to meet their needs. Everyone should have a voice, and everyone should benefit. TOP offers a great opportunity to invest in a stable company operating in a red-hot industry.
Tokenplace is set to grow rapidly, with future mobile apps announced and a trading program prepared for your users. What other future plans do you have, anything exclusive that you can share with us?
Something we haven’t delved into in our public documents so far is TOK’s potential as a digital currency. Imagine if even a small portion of users in the gaming industry adopt TOK as a payment method and a convenient way of bringing fiat money in and out. The Tokenplace platform can be a hub for payments and fiat conversions for gaming.
I have a very strong sense of TOK’s potential in this area, and I get goosebumps thinking about such possibilities.
The token has a great technical team behind it, and we’ve already designed state-of-the-art capabilities for post-quantum cryptography. A new generation of infrastructure needs to emerge around this technology before we bring it online, so we’re waiting for the right opportunity to launch that aspect.
Crypto trading is a trend that mostly started in 2017. Anyway, with every year we are seeing more professional traders joining the market. When do you think we can consider the cryptocurrency market as being mature?
I would frame the issue more broadly. A wide range of assets are being digitized, which naturally follows the trend of the past decade in which offline services of all kinds are being offered through digital platforms. It’s clear that the time for the market is now. But the question is a regulatory one; how to organize all these processes and create a legal framework? I’m certain that the denial phase on part of the regulators is long over with.
Now it’s just a question of how much time it will take them to adapt to the new realities and create a safe environment for all market participants. And as long as there are assets with changing prices, there will be traders and investors. Our task is to create a tool that meets the requirements of professionals while also being accessible to new participants. More and more people are drawn to digital assets, and when the generation of people who grew up in the age of Facebook reach the age of their peak economic activity we will see an exponential boom in the cryptocurrency audience.
And, of course, the first service they’ll interact with will be Tokenplace!