The cryptoverse, since the advent of programmable blockchains, has seen a lot of players with the same bland and often predictable business model. Startups come forward to offer game-changing solutions and introduce their native tokenomics to incentivize the validators and participants joining the ecosystem.
It’s the go-to business plan for solutions trying to disrupt the space and do something different. However, the crypto adoption problem is no more in the technicalities of blockchain technology and who can weave it around to impress customers and skeptics—what needs to be addressed is in the business dynamics.
Yes, there are cracks and imbalances in anything blockchain as the technology is still growing, but what is more discouraging in these times is the profitability plans crypto startups employ at the detriment of their partakers. While the cryptoverse is a windy and volatile place, crypto startups should aim to help believers endure its rickety roads, onboard enthusiasts, and educate skeptics to spike adoption.
Roobic, an EU-based exchange, saw loopholes in the exchange world and tried to address them by mending cracks for experts and removing scarecrows for skeptics. What areas exactly are they focusing on? And what are the solutions they are proffering at the moment?
OTC (Over The Counter) trading didn’t start with crypto—it is the second arm of any financial market. In traditional finance, you go through exchanges or OTC’s to buy whatever security you need. People who want anonymity, speedy trade, and to bypass the hassle of buying big amounts of crypto go through OTC “desks.”
The rules of engagement are different for every desk and are highly influenced by market dynamics at the time, so OTC trades tend to occur on a highly intimate level.
Of course, slippage (a situation whereby a buyer trying to buy crypto but can’t have it all at once buys a chunk at the current market rate and the remaining part at a higher price) avoidance and liquidity are one of the strong points of any OTC desk. Still, Roobic is looking to be a leader in this game with various customers to help speed up transactions. In addition, Roobic upholds confidentiality since it’s one of those factors that attract OTC customers.
Roobic will focus mainly on corporations with retailers in the mix. This will involve enormous funds and modest commissions. OTC desks do not disclose commissions per trade as it’s supposedly part of trade secrets. Since most traders at the “desk” are bigwigs, they feel indifferent, are strident about being anonymous, and avoid unnecessary frictions.
Roobic will get commissions per trade and, at the same time, declare it to customers straightforwardly and transparently, with no hidden fees, to foster more trust and accountability.
Compared to the capital locked in OTC desks of traditional markets, crypto OTC still has a long road to tread, but the growth potential is endless, and it’s happening fast. And with solutions like Roobic, crypto OTC will get more enjoyable.
Staking And Loans
Crypto has many hard nut concepts, and staking is one of them. It’s staking your crypto—if it supports staking—in a protocol to get a chance to regulate and validate the ecosystem’s proceedings. Using a “staking pool,” users can save up their cryptos as stakings, just like a savings account. Staking and mining’s purpose align as the protocol selects participants to validate transactions and compile the next block.
However, they take different directions. With staking, you are not required to purchase high-speed machines to solve mathematical puzzles like the mining process. Mining consumes energy and requires a lot of processing power that can only be purchased with a high capital if participants want to get a higher chance of getting picked by the protocol to be the validator.
Virtually all big exchanges support staking, but Roobic is doing some things differently:
- Higher Returns: With Roobic, stakers get higher returns than other higher exchanges.
- Compliance Level: Vesting periods (An inactive period for your crypto after they are staked) can take time, and the market’s volatility may affect your staked crypto. Exchanges aren’t to blame for this. But at Roobic, the executions are speedy and the compliance level is still high, on par with other exchanges.
- Fiat loans: Roobic will offer fiat loans to customers who wish to borrow and use crypto as collateral. Several exchanges require borrowers to have twice the fiat in crypto as collateral, but Roobic will be lending as the borrower deems fit.
- Ubiquity: Roobic is EU-based, but their presence cuts across various continents as they’re able to engage transactions from multiple financial institutions in many jurisdictions.