Altcoin.io, a San Diego-based decentralized exchange, has announced that it has raised one million dollars following its WeFunder campaign. The campaign ended days ago and has succeeded in raising $950,000 from 1100 investors.
The exchange integrates an atomic swap wallet, which enables fast trading between different networks. Co-founders Andrew Gazdecki and Sulejman Sarajlija performed the first Ethereum–Bitcoin atomic swap in 2017, and are bringing that feature to their platform. Altcoin.io will additionally use a Plasma-like sidechain that will enhance scalability and provide security fail-safes:
“Plasma is a blueprint for a scalable, hierarchical blockchain where transactions are underwritten by smart contracts. In the event of system failure or a security breach, users can trigger a mass exit event to release their funds from the smart contract.”
The platform will also provide 24/7 customer support.
Centralized exchanges are responsible for the bulk of the crypto market’s trading volume. However, they also store users’ funds, and, as a result, they are often targets of thefts and hacks. Altcoin.io’s announcement notes:
“A few centralized exchanges handle the majority of cryptocurrency trading volume, but their business model puts users’ funds at risk…we’ve put all our energy into creating an exchange that’s as fast and easy to use as centralized exchanges, but with none of the custodial risk.”
Centralized exchanges are also highly regulated, and intensive KYC/AML procedures can make simple transactions difficult. Decentralized exchanges provide an alternative, as they allow crypto investors to trade without these restrictions. Altcoin.io has not described its identity collection policies in depth, but its home page and various blog posts list anonymous trading as a feature.
Suggested Reading : Learn about some of the best centralized exchanges in cryptocurrency.
Altcoin.io will have a lot of competition: blockchains such as 0x and OmiseGo are prominent projects that involve decentralized exchanges. Meanwhile, Binance is a leading centralized exchange that will soon launch its own decentralized offshoot called Binance Chain.
Although they have not overtaken centralized exchanges, decentralized exchanges are making their presence felt: Binance, the leading centralized exchange, currently trades $1 billion every 24 hours. Altcoin.io estimates that the leading decentralized exchange trades about $10 million per day — just a fraction of Binance’s volume, but no small feat.
The post Altcoin.io Raises $1 Million For Its Decentralized Exchange appeared first on UNHASHED.