Project Development

We plan to build the Tokenplace platform in 4 stages. We will achieve a final product release for API trading in Q3 of 2022, and implement the paid subscription. Single-account trading will launch by the end of 2023. From there, we will continue to optimize and add features for increasing user acquisition and revenue growth.

In this section, we will outline the 4 development stages, a general timeline for project deliverables, and an estimated cost structure for the first 3 years of operation.

In the first two stages, we will gather a network of pro traders by offering a powerful API-based interface from which to trade simultaneously on all the top exchanges. Our trading terminal will be the first to offer automated order splitting for subscribers. We will leverage TOK emissions to incentivize early adopters, offering token rewards packages to those who participate in our subscription presale and word-of-mouth campaign. 

In stage three, we will build the Token Trade engine, creating a powerful new use case for the TOK token, taking a large number of coins out of circulation and into the reserve. By first growing a community of active traders, the first two stages allow us to successfully bring the full scope of our technology to market in the final stage.

5.1 How We’ll Build Tokenplace

In Stage 1 of development, we built an API-based, multi-exchange trading platform. It allows traders to work with all their exchange accounts from a single interface, as well as providing advanced order-splitting algorithms to retail users for the first time. 

The Tokenplace trading terminal is fast, convenient, and more cost-effective than using individual exchange accounts. We used these advantages to help us attract a core user base and community for the initial platform.

Shortly after completing the launch of our initial platform, we’ll move on to Stage 2 with the launch of the TOK coin and the unveiling of our multi-exchange order-splitting tool. We will also expand our service to cover 30+ leading exchanges. We believe this will attract a large user base among the trading community: our Smart Post and SWAT algorithms multi-exchange algorithms break down each order optimally to find the best price among all exchanges. Smart Post also acts as a ‘shadow order’ unleashing the order piece by piece so as not to move the market. This is the first time these tools have been available to retail traders. They will provide instant savings, allowing traders to recoup their subscription fee within a single trade. 

Stage 3 will focus on investment and growth. We’ll add support for futures trading as well as distributed exchanges, partnering with leading players in those fields. At the same time, we will introduce a personal terminal wallet for users that simplifies deposits and withdrawals. As the community grows, we’ll also be able to implement an atomic swap engine that enables users to make quick transfers between different cryptocurrencies without having to trust an intermediary.

Diagram 2: Before & after implementing the atomic swap engine.

The larger the Tokenplace community becomes, the greater the possibilities for atomic swaps that will be available amongst community members.

Finally, in Stage 4 we will fulfill our primary value proposition by launching a single-login inter-exchange smart trading (i.e. order splitting & matching) engine, called Token Trade. This will enable users to buy and sell any token on the market at the best available price, in real time. This will help us attract even more users and distinguish Tokenplace as the most commercially appealing trading terminal in the cryptocurrency market.

This smart trading engine will be able to pool together orders made by Tokenplace users and split them in a way that optimizes the price at which each order is filled.

Diagram 3: Example of smart trading engine with 3 incoming orders split across 5 exchanges and filled at optimal prices

By this point, Tokenplace will have the following features:

  • Easy user access to the aggregated liquidity coming from our connections to major crypto exchanges
  • Detailed Pro Tools to analyze the market and assist with institutional trading
  • Real-time comparisons for digital asset prices on all major exchanges, ensuring that users can get the best possible prices
  • Automated order splitting
  • A native coin (TOK) for seamless transitions between fiat and crypto
  • A new cross-coin architecture that incentivizes platform growth and directly rewards the users who drive that growth.

5.2 Cost Breakdown

In order to execute our plan for developing an industry-leading trading terminal and liquidity provider, we have developed the following estimate for how we will allocate funds raised. The first chart shows token distribution, and the second shows how funds will be spent running the business. 

Total TOK supply: 250,000,000

Total raised: $2,943,750.00

Balance Amount Left From Seed, Private and Public Rounds: $ 2,943,750.00

Note that this breakdown is just an estimate and is subject to change as necessary once the platform’s development is fully underway.

5.3 Projected Revenue

In order to estimate our net revenue and expenses, we first had to conduct extensive market research to determine what we could reasonably expect to accomplish as far as the growth of our platform in the early years.

Based on the trading market today as discussed in Section 1, we estimated that the total number of registered traders on Tokenplace will be 60,000 by year 1, 235,000 by year 2, and 378,000 by year 3. Furthermore, we estimated that the total amount of trades executed by those traders would be 19.9 million, 87 million, and 140 million in years 1, 2, and 3, respectively.

Our projected subscription revenue from this user base is $1.24 million in year 1, $8.8 million in year 2, and $25 million in year 3. 

Combined with estimated revenue-sharing deals with exchanges, this gave us the projected gross revenue and net profit seen in Figure 3 below.

Figure 3: Gross revenue, gross expenses, and net profit projections

If we reach our goals, we can expect to achieve an EBITDA of nearly $13M by year 3 of operations.

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