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Which IOU would you like for GateHub Fifth to add on ripple?


GateHub Fifth new IOUs poll  

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  1. 1. Which new IOUs would you like for GateHub Fifth to add on ripple?

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On 25/03/2017 at 2:01 AM, tomb said:

Why not all of them?  There is an exchange called Poloniex that does rather well by evaluating and adding all the coins with potential.

really al of them  why dont you just put all the alt coins 672 coins  would be even better reallly? lets build the best blockchains and not just add any

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really al of them  why dont you just put all the alt coins 672 coins  would be even better reallly? lets build the best blockchains and not just add any

All (Alt)coins, except those with a purpose like XRP or ETH, are all doomed to vaporize over time...
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How about a 'buy through GateHub' option for people wishing to participate in ICOs? Instead of participating in the ICOs directly customers would deposit their BTC/ETH with GateHub. Once the ICO is over participants would receive IOUs in their accounts.

I remember GH doing something similar with REP, however the system was a little convoluted as it involved ICO participants getting in touch with Joey Krug of Augur to get their Rep signed over. If there was a 'buy through GateHub' option avaialble on your site, which listed the upcoming ICOs that you would be participating in it would allow GateHub to carve out a niche.

Poloniex lists almost all of the most popular coins and has the best liquidity. Traders need a compelling reason to open up an account at a new exchange. The opportunity to buy and sell ICO-IOUs before tokens/coins are distributed would be one such reason.

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I think it's worth considering what @in-cred-u-lous has pointed out in his post. There are many many exchanges and I don't think that you can compete with existing exchanges that have a LOT of liquidity, many tokens, and tons of customers simply by adding new assets to Gatehub/Gatehub Fifth. What can Gatehub offer that would draw those customers away from their existing exchanges? I wouldn't build the exchange of today, you'll be behind the curve, I would build the exchange of tomorrow. I think there are a few things to consider:

1. Almost all tokens trade against BTC.

2. Exchanges that list many many tokens (Polo) tend not to have integrated fiat rails.

3. So those trading exotic assets must first trade against BTC and then withdraw BTC to another exchange or coinbase (SLOW and EXPENSIVE) before they can withdraw fiat.

4. Cryptoenthusiasts are frustrated with the current deposit and withdrawal options.

5. Not all cryptocurrencies are created equal. By that I mean that there are crypto"currencies" that are for payments, "utility"tokens that serve a nonfinancial purpose such as paying for a specific service or product, representative tokens (represent physical assets like gold), and hybrid tokens. In the set of cryptocurrencies I'd place {BTC, XMR, ZEC, LTC, ETC, and perhaps DOGE}, there are others. In the set of "utility"tokens I'd place {FCT, SC, SCJX, REP, GNT, etc}. Representative tokens incude {XAU} and hybrid tokens can be used for payments but also serve a secondary function {XRP, ETH, DCR}.

6. re: #5, While pure cryptocurrencies rule the market cap today, at some point useful decentralized blockchain platforms will start to solve real world problems and their tokens will have value based on utility rather than on speculation. So, we will live in a multi-asset future and nontraders will want to buy noncryptocurrencies (utility, hybrid, representative tokens...) directly with fiat and not necessarily have to go through BTC. 

7. Clients that buy excess utility tokens may want to trade their token for another token without going through btc or sell it back to fiat. 

So, I think the best course of action is to come up with a new value proposition that speaks to current market frustrations and works toward building the cryptoexchange/cryptoretailer of the future. It'd be a place where users can trade any asset against any other asset. It'd be a place where users could also buy utility tokens directly with fiat.

So, I'd actually start to build out a vision of Ripple. Poloniex has BTC, ETH, and USDT orderbooks; on Gatehub you should have BTC, Fiat, and XRP orderbooks. Then you build a Shapeshift-like feature WITHIN Gatehub. Users can select the originating asset and the destination asset and click "convert" and the order is auto-bridged through XRP. Rates can be locked in with ILP and perhaps Ripple would serve as a MM by once again allowing for zero fee exchanges. The liquidity could be serviced from the existing XRP orderbooks but to the user the purchase would be an instant conversion of fiat into their token at a transparent rate. Users could alternatively trade against XRP, fiat, or BTC as they normally would and I surmise in the future trading against XRP may gain in popularity as it will be the fastest way to settle transfers between exchanges or wallets.

So, for financial reasons I understand that it might be appealing to integrate tokens with more current liquidity and volume but I'm guessing that you're going to be hard pressed to draw user from their current trading platforms. I don't think you'll actually get that much traffic. I think you need to offer something new. Instead, by integrating less popular but solid (i.e. reputable team, maturing technology, with a chance of getting out of beta) utility tokens like SiaCoin you may attract new customers that feel that the current number of trading locations for their tokens are inadequate, would like to buy their tokens in fiat, would like to sell tokens and withdraw fiat on the same platform, and would like to trade directly against other exotic assets you may create new value for cryptoenthusiasts and end up drawing more clients and volume. If you bridge everything through XRP then you can pay yourself fees in XRP which is much more liquid. 

Down the road you might be able to position yourself as a primary destination for those interested in decentralized services but not cryptocurrencies.

Just some inchoate thoughts.

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  • 3 weeks later...
On 3/25/2017 at 4:11 PM, in-cred-u-lous said:

I was linked here from the Sia Slack during a conversation with XRPChat member cmbartley. I am a newcomer to this forum but a long-time XRP user.

I would argue that Siacoin is a very good match for XRP and Gatehub .

Siacoin stands among so-called "altcoins" as having a very specific utility. Siacoins are required to pay for distributed cloud storage on the Sia network. Furthermore, Siacoins are required for announcing hosts on the network, paying host collateral and for bandwidth. Siacoins are also involved in securing the network, from PoW mining and (very soon) to prevent Sybil attacks through proof-of-burn.

Therefore, anyone that wishes to use the Sia network for storing data, or selling storage space, need to transact in Siacoins.

Since Siacoin is a token with measurable utility, the cost of acquiring the tokens need to be calculated into the price of hosting storage on the network. The higher the transactional costs, the more expensive file storage on the Sia network becomes. For this reason, exchange mechanisms need to exist that lower these costs. Today, the costs are high, since fiat needs to be transferred to a bitcoin exchange (banking fees) exchanged into bitcoins (more fees) and then into Siacoins on an altcoin exchange (more fees; and then in the reverse when extracting hosting profits for fiat).

Gatehub will lower the cost of storage on the Sia network through providing a more direct mechanism for businesses and individuals that want to buy and sell storage on the Sia network. Because the costs of acquiring Sia will be lower than current exchange routes, many users should choose to transact through Gatehub for their Siacoin needs.

Adding Siacoin as a token available through the Gatehub XRP gateway is therefore a win-win for both Sia users and Gatehub.

Add Siacoin

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