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COOPEX: The Cooperative Exchange

July 15, 2018

COOPEX banner logo

The current state of trading exchanges in the cryptocurrency space is improper at best, and ultimately, downright detrimental to the expansion of the blockchain industry and ecosystem.

New and smaller crypto projects struggle with being listed on reputable exchanges, regardless of their merit or overall user base. Numerous exchanges charge exorbitant and ludicrous listing fees for new and smaller projects, while taking obscenely long to list them - even after receiving payment. Such delay and mistreatment not only ruins the credibility of the project, but:

  • Reduces the likelihood of project survival, &
  • Bankrupts or financially injures investors.

Nobody wins.

Furthermore, cryptocurrency exchange users are often charged high fees for every transaction the make. Deposit fees, maker fees, taker fees, and withdrawal fees, all go to the exchange, never to be seen by the user again.

So, what do exchange do with all the money? After all, exchanges certainly don’t need to be keeping every single cent of the millions they make.

The COOPEX Mission

That’s where COOPEX comes in. COOPEX stands for the COOPerative EXchange, and we are a new, hybrid decentralized cryptocurrency exchange that is focused on rewarding exchange users and traders for their loyalty, along with exchange growth. At COOPEX, we believe in:

  • Simplified user experience,
  • Generous loyalty and rewards programs for users,
  • Promotion of new and smaller blockchain projects, &
  • Providing users with a voice.

COOPEX users are more than just traders, they are partners in the COOPEX business, and we intend on treating them as such.

Now, let’s take a look at seven (7) core benefits of The Cooperative Exchange.

Benefits of the Cooperative Exchange

1. Token BuyBack & Dividends Program

Once a month, COOPEX will collect 75% of exchange trading fees and use them to buy back and burn COOP tokens - the native currency of the COOPEX exchange. Such model is similar to Binance and their BNB token, however, it will be more than 3x as effective.

Recently, several ICO investors reached out to the COOPEX team expressing their interest in a dividends program as well. As mentioned above, we are a cooperative exchange, therefore we will commence a token holder vote on the exchange to determine how we will allocate funds for a dividends program.

2. Token Holder Voting

The Cooperative Exchange will feature a token holder voting system at its launch, where COOPEX users and token holders will ‘stake’ their COOP tokens in exchange for the ability to vote on:

  • Exchange policies, &
  • Token and project listings.

Cooperation is our primary goal.

3. Hybrid Decentralized Exchange

We understand the power of blockchain technology and its benefits for trading and exchange security. Before launching our exchange, we will begin by moving all Ethereum assets to a smart contract.

At COOPEX, we’re committed to making our exchange entirely decentralized, however, as non-Ethereum assets (ex. Bitcoin & Bitcoin Cash) do not support smart contracts, it will be difficult to immediately do so. Therefore, we are first establishing ourselves as a ‘hybrid’ decentralized exchange, with a commitment to becoming entirely decentralized at a later date in the future.

4. Margin Trading

The Cooperative Exchange will offer margin trading with leverage of up to 50x on a selection of our markets - typically, our most liquid markets. Our algorithm is similar to BitMEX, in that the higher the leverage, the closer the liquidation points. However, we will not use the same matching system, and instead, we will force limit orders for margin.

5. Free Exchange Listings for ERC Tokens

Our goal is to ease the listing process for new and smaller projects, and as such, we will list all projects based on the Ethereum blockchain (ERC token standard) free of charge. That’s right, ZERO fees.

For other blockchain projects and tokens, we may assess a fee, depending on the complexity of configuring the blockchain with our deposit and withdrawal processes.

6. Liquidity & Market Making

We’re partnering with liquidity providers who will use our API to market make for a selection of our markets. Doing so will make trading easier for everyone. One of the biggest issues with smaller cryptocurrency exchanges is that they are illiquid, so any trading of a project or token may dramatically increase or decrease its value.

At COOPEX, we intend on solving such liquidity issues by offering a liquidity program, where projects can opt in or out. At present, we are partnered with ChainRock (https://chainrock.io/), a global advisory and investment firm.

7. MVP Already Completed

Unlike most ICOs which run on hype and hype alone, COOPEX has their MVP (Minimum Viable Product) already completed. Investors will not ultimately have to give away thousands of dollars just to watch the roadmap be pushed back.

While we understand the power of marketing (50% of all ICO funds will go towards marketing), it’s important to have a product which actually gives the COOP token value. Our exchange is already built and functional.

At date of publish (July 15th, 2018), we are working on several backend and frontend improvements, such as:

  • New trading UI, &
  • Smart Contracts for ETH/ERC.

Other than several minor backend and frontend improvements, you can rest assured that you investment is going towards a product which actually works. And, we are always improving.

Finally, our market cap is starting incredibly low, with our soft cap at just $500k USD!

If you’d like to participate in our ICO, which runs until August 3rd, 2018, head on over to our homepage and markets page to purchase your COOP token.

Further Resources, Links, & Reading

Website: https://coopex.market

ICO (market): https://coopex.market/trading/coopbtc

Blog: https://coopex.market/blog/

Telegram: https://t.me/coopexmarket

Twitter: https://twitter.com/coopexmarket

Facebook: https://www.facebook.com/coopexmarket/

Reddit: https://www.reddit.com/r/coopex/

 

Read more:

Understanding Hybrid Decentralized Exchanges

 

posted by Jonathan Downing

View all posts by Jonathan Downing