Welcome to the Bartertrade - $BRT Q&A with The Gem Hunters
We would like to thank the BarterTrade team for coming to The Gem Hunters and kindly sharing information on the project with our community. Before commencing our pre-set questions which will be followed by public engagement we would like to share some basic information on the project to give people a better idea before the Q&A begins.
Established in 2017, Barter Trade is a 21st century digital assets trading platform. They aim to provide efficiency through a complete ecosystem for online financial traders, both newcomers and professionals/institutions. With extensive industry experience in both traditional and crypto markets, they recognized the need for an innovative platform in the cryptocurrency realm. An exchange that provides the user with an all-encompassing, reliable and safe experience while maintaining a user friendly, efficient and functional interface.
Barter Trade envision providing the market with the most innovative solutions, through their competent and dedicated team. In addition to being a cutting edge platform, providing a great user experience, we make no compromise on the security of user funds. We go to great lengths to provide protection from every know type of attack and vulnerability. As shown in our roadmap, we are marketing a working product. At the time of the ICO, Barter Trade will have a fully functional platform, providing early users with nothing less than promised. Barter Trade is an Easy, Smart, Social and Gamified way to trade crypto currencies.
1. The crypto exchange sector is highly competitive and frankly it's already pretty much overrun, with thousands of exchanges of which the vast majority have no uniqueness to them. Barter exchange on the other hand was in a self funded development phase for over 2 years and you have spent over 400k of your own funds. During that time you had a clear vision to make barter more than just another exchange. Your team came up with a wide variety of different features, which combined are supposed to give the barter trade exchange the unique touch that other exchanges are missing.
1.1 Please tell us more about the Social trading feature of the Barter Trade Exchange. How does it work and what are the benefits for us as traders sharing our setups?
1.2 The feature we want to hear more about is the Algo trading. How does this work and how does it differentiate from using a regular third party trading bot service?
1.3 What is the so called Pie Order?
1.4 The Barter Trade Exchange Smart Asset Fund, or SAF, is another unique and exciting feature. Please elaborate what this feature does.
1.5 Barter is going to implement a gamification feature into the exchange which is going to be called Battlegrounds. Combining gaming and competition with trading is a brilliant idea and we would like to know more about this feature and what it will bring.
Yes, you are correct.
Coming to the first part of your question: If you go deep inside the exchange market and try to understand it, you will know the bulk of the market is an empty shell. At Least 90% of the platforms are boxes filled with fake volumes, 0 liquidity, and No real products. The market is dominated by clones/ replicas of one another. Most of the exchanges don’t even have basic order types such as stop-loss let alone any real product. Leaving only a handful of exchanges that are real in terms of the user base, liquidity, and volumes but still some of them lack actual products that benefit users. Check out this recent expose of a Top 50 exchange by our team member and Coinmarket cap appreciated it and promised to take action: https://twitter.com/ManmeetBRT/status/1275858676671078401?s=20 …..Space is filled with such projects. This is the situation in the top 50 exchanges, imagine what else lies below and beyond.
As for the second part of your question: We have been working on this for the past 18 months. Completely self-funded (roughly 400k). We could have done an ICO in late 2017 or early 2018 but we didn't because we faced and suffered on the hands of many projects that scammed people and disappeared into thin air with millions of $$$. We started this project in mid-2018 with an aim and vision that we will develop our project on our own money and then go into the market with a product that is not just a paper. Once achieved, then go for fundraising in order to expand, improve, and innovate the project further. Some people might say that why risk so much without any surety. Well, that’s that, there is no real answer to it but hey, we have reached our soft cap within the 5 days of the sale. We are not selling a paper during the IEO but instead, we have a product. We call it an MVP but it is a full product for many exchanges. A launch ready Spot trading platform with some of the unique Order types. Since we have a lot of features in the pipeline, therefore, we call it an MVP.
To the final part of the first question: Since we all (team members) are traders as well as early adopters and had the experience of trading on a number of exchanges. We always felt that there is a lot more to exchange and no one really concentrated on providing services to the users that users want. Our aim from the start was to build products and features that help users and make trading easy. The first introduction to this was the build of the PIE order type. Then we wrote down the idea of Social trading, then algo trading further we worked on Battlegrounds, P2P lending, Marketplace, SAF (tokenized fund), EazyPay, and much more. We pride ourselves in saying that we are an exchange that empowers users. We are not just another exchange but much more, a complete ecosystem of real trading products for traders. An Easy, Smart, Social, and Gamified way to trade cryptocurrencies.
1.1 Social trading is a unique way to Trade, Learn, and Earn alongside your fellow traders. One aspect of social trading is copy trading. Copy trading allows you to copy other successful traders or monetize your own trading strategies if you are a good trader yourself. No need to follow a paid group leader anymore. Follow people that really trade.
Choose your trader based on a number of metrics i.e. Profitability, Max losses, Account Life, Pool balance, No. of followers, Trade history, Traders fee, Account's Risk score thus reducing the risk of the following someone substantially, highlighting transparency and helping people make better decisions based on real-time market and performance data.
Benefits for the followers:
1: Hassle-free trading experience. Click follow and start trading.
2: Follow the most successful/profitable Master traders from the leaderboard.
3: Choose the best trader for you based on a number of metrics mentioned above.
4: Cancel your subscription anytime.
5: Follow people that really trade.
Benefits for the master traders:
1: Earn income just by sharing your trading history, performance data, and allowing people to follow your trades.
2: Set a standard fee for following you or a % commission on the amount of profit, traders earn by following you.
3: Earn a 40% commission on trading fees generated from the list of your followers.
Other aspects of social trading will include products related to mutual investing. First introduction to this list is SAF i.e. smart assets fund which we will explain later in the QnA.
1.2 The algo trading is powered by Flourishing Capital AI a formerly private high frequency trading crypto fund.
Blockchain analysis, Multi-exchange order book analysis, Technical analysis, Statistical anomaly analysis, Stable coin arbitrage, and Overall supply and demand analysis are weighted dynamically to drive Flourishing Capital AI market cashflow opinion.
Return Boosting Intelligences: upon a bullish market determination, the AI will purchase BTC and other crypto investments gaining against Bitcoin to multiply gains.
Capital preservation intelligence: on a bearish market opinion, the AI will gracefully exit from exposed positions into fiat pegged or market making positions dynamically, preventing mass position exit market drops. When possible, Flourishing Capital AI will also purchase 1/Bitcoin and leveraged ETPs, and arbitrage coins
Neutral Market Intelligence: Flourishing Capital AI gracefully enters a balanced Bitcoin to Fiat Position (50-50 or investor determined), enabling a shift in an advantageous position while limiting losses. When an opportunity to flip altcoins exists, the AI will scale in and out of position to maximize risk adjusted gains.
o All purchases and sells are split up into many small orders with laddering calculated using an AI driven statistical model which controls for risk and likelihood of order fill while avoiding pushing the underlying markets due to volume.
1.3 Owing to time constraints, today’s traders are unable to conduct intensive market analysis. Whether it is executing a buy order at a bottomish price or a sell order at an expected top, traders often suffer losses and miss out on making potentially profitable trades due high volatility in the crypto markets. Barter Trade PIE is an advanced market order for cryptocurrency traders which provides a solution for various unavoidable situations. The PIE algorithm allows users to place sell orders for their pending buy orders along with an option to put a stop loss to your buy, whilst the stop loss provides you with an option to either limit stop loss or trail your stop loss. Traditionally it is impossible to place the sell order unless your buy order has been executed because the most the market provides you is an OCO, which is one-cancels-the-other allowing users with the option to place 2 orders at the same time and not more but, the PIE algorithm solves this problem, by allowing users to place simultaneous buy, sell and stop-loss orders for a particular trade in a single go.
1.4 Barter Trade’s SAF is an individual managed tokenized Fund Market consisting of one or a number of cryptocurrencies. In simple words, SAF is similar to mutual funds but built on the concept of tokenization. A SAF trader is a Portfolio manager with whom other users can invest their cryptocurrencies. SAF provides the users with little-to-no experience an opportunity to trade alongside highly professional traders. Every fund listed on the SAF market is tokenized and reflects as a token on the SAF markets. Barter Trade SAF’s is highly unique and advanced as compared to traditional markets, a user never directly invests in a SAF and loses hold of his assets at any time but instead he/she follows a SAF which would be based on a number metrics i.e. Type of assets, Past performance, Experience of the trader etc. This gives the user power of exiting the SAF at any preferred time. The SAF market will be highly sophisticated where our system will analyse the real time data and performance of the market and the performance of the FUND will reflect on the graphical chart. Every listed SAF would reflect:
1. Current portfolio
2. Past Performance
3. No of followers
4. General information of trader i.e. Social profiles, experience etc
SAF’s market will leverage traders in making smart decisions while choosing where and when to invest. We all know that the crypto community is filled with noise and scams of paid groups. Every other person with zero to no TA or FA knowledge claims to be a crypto guru. SAF would widely help reduce that noise and bring stability to overall sentiment of the crypto traders because the users will be following a SAF based on real time performance data which will reflect on the trading chart. Additionally, SAF hugely benefits the portfolio managers and adds a lot of value to their trading. There are several benefits that traders obtain for running a SAF. These include
1: Commission on trading fees
2: Commission on Profits earned
3: Respect among traders
1.5 Battlegrounds is trading gamified. Play and compete while you trade crypto assets and win exciting prizes. Be it spot pairs or derivatives pairs, there will always be competitions and tournaments going on at Barter Trade’s Battlegrounds. Battlegrounds is a unique platform where traders can enjoy an element of fun and entertainment while trading. You would trade anyway, why not participate in a tournament while you do your normal trading and be eligible to win some exciting prizes?
As the image illustrates, choose any of the ongoing tournaments/events, Add your trading stack and start trading as you normally do. Person with the highest turnover takes away the prize. Simple! 😊
Q2. we’ve seen that there's also going to be a feature called EazyPay in the future. What can we expect from it and can you give us an idea of when it's supposed to be available?
Barter Trade’s EazyPay is a decentralized peer-to-peer fiat trading network. Allowing users to trade directly with each other without the involvement of any third party. It allows an easy gateway for buying various cryptocurrencies using fiat currency and also selling them without being dependent on the exchange to process the deposits and withdrawals.The EazyPay network will not only support BTC but also a number of altcoins. Allowing users to buy and sell them directly using FIAT and that too in a decentralised way.This will be secured and made possible by an advanced escrow and customer support system to conduct the transactions in a smooth and transparent manner.The transactions costs on EazyPay will be a near negligible as compared to private payments processors we use for buying and selling cryptocurrencies.
Apart from this, the EazyPay network will support fiat trading on the Barter Trade’s main exchange. This will be made possible by our advanced bid matching system for deposits and withdrawals. This will eventually also eliminate the need of a bank to process the payments for the individuals.
How this works:
1. User X wants to trade the BTC/USD pair but does not have USD balance in his exchange account.
2. User X places a 500 USD deposit request on EazyPay.
3. User Y, who just sold his BTC on the BTC/USD pair, wants to withdraw his USD.
4. User Y places a withdrawal request for 500 USD on EazyPay.
5. User X gets matched to User Y.
6. User Y’s 500 USD are now locked in the escrow.
6. User X’s screen will show a pop up asking him to deposit 500 USD in User Y’s account.
7. User X will deposit 500 USD in user Y’s account and post the proof for the payment in the conversation window.
8. User Y will confirm the payment and then release the escrow.
9. User X gets 500 USD in his exchange account and he can now trade with them on the BTC/USD pair.
The release for EazyPay is expected around Q3-Q4 of 2021
Q3. DeFi is currently one of the hottest topics in crypto and especially lending. Barter is aiming to bring peer-to-peer lending to the table. How is that feature going to function?
I see that you mentioned DeFi in the question. I would say that this has 'some' elements of DeFi but I would not relate this to it. Although our P2P lending is a fairly decentralised process but since it is running on a centralised system, we would not put this in the DeFi category just for the sake of riding the Hype train.
As you all may know, lending in general is a passive way to earn income on your savings or holdings in Cryptocurrencies by lending it to others and earning interest on it.
Barter Trade’s P2P lending will go hand-in-hand with the margin trading on Barter Trade’s platform. Bartertrade’s p2p lending will allow users to earn interest on their cryptocurrency by lending it to other users with the option to select the different cryptocurrencies, stable coins, time period to lend (min to max), and the interest rate lender wants to charge the borrower. On the other hand, Margin trade allows users to trade with borrowed funds. The lending amount will be available to the users for margin trading who will pay the interest on the borrowed amounts.
Barter Trade will connect lenders (willing to earn interest on holdings) and borrowers (willing to do margin trade) peer to peer according to their orders placed in the order book. The lending amount will be available for borrowers as a whole or in partial amount as per the required conditions. If the borrower opens a position that requires a portion of the lent amount, Barter Trade will allocate that portion to the borrower, and the rest of the lent amount will be available for other borrowers.
Q4. Countries all over the world are starting to implement cryptocurrencys and digital assets laws. What is barter implementing to tackle these regulations?
That’s a strong indication of market maturity, and Barter Trade fully supports industry growth within set guidelines. It’s far easier and more efficient to operate with clearly defined laws rather than within grey areas, unsure if what is being done is allowed. There are, and always will be, areas of regulatory arbitrage, specifically within the fintech space. The reason being the set pace at which the industry constantly changes, while newer innovative offerings are conceived. The balancing act for regulators is to avoid over-regulation and try not to stifle growth; giving a specific focus to consumer protection rather than innovation suppression.
Q5. You've been doing many AMAs and interviews in the past few weeks and months. Do you have further marketing plans to grow the user base of the barter trade exchange and the community surrounding it?
As it is probably quite evident for those who have followed our project closely. We plan to intertwine the community in the very fabric of the product. We aim to be very user-centric and to have this closed feedback loop with our users based on loyalty and experience. The platform will evolve through the demand and expectation of our users, both thinking ahead of the market to innovate, and constantly keeping an ear on the ground for offerings. Our team has been active in the industry for many years and has a good idea of the incentive mechanisms in place to encourage participation. We’re sometimes accused of doing too much, but being able to offer more is the key to both user growth and user retention.
Q6. You mentioned the Three Pillars of the barter trade exchange on your website. Could you please elaborate what they are.
Certainly. The 3 pillars quoted are ‘Security, Transparency and Efficiency’. As a digital asset exchange these are the fundamental base layers which our product is built on. I’d like to go into depth with this question as I feel it’s important to understand that it may be our strongest differentiator.
Security: We’ve implemented security audits, penetration tests, stress tests based on predicted output and haven’t cut any corners in preventing the attack heuristics used by hackers historically. This was a costly endeavor but as we’ve seen so many times in the past, the existential risk of having avoided this needed to be circumvented.
Transparency: The industry is often challenged with incompetence, poor reporting without standardised measures as well as corruption. This can be seen through market manipulation as well as fake reported volumes and other collusions to skew market statistics. We recognize that we are providing largely decentralized permissionless assets, and the ethos should reflect this as such. In other words if we strive to be a trusted centralized market entry, the least we can do is be transparent. Auditable open source code (security in mind) and clear operations within stipulated boundaries. A small example of this is our token asset framework, which will prevent conflict of interest for listings and provide assets based on true value, that tick the boxes.
Efficiency: this part you can experience for yourselves really soon. Our product was fully built prior to the fund raise (which is required for operational capital). We constantly had the user experience in mind and strived to offer efficiency for all levels of traders, from beginners to advanced. This is evident through many of the trading features and advanced order types we offer, which are presented in a gamified way that’s user friendly and not overwhelming. Certain examples are Pie Algorithm and Algorithmic trading. I encourage you to read more about our order types.
Q7. The BRT token is going to have a wide variety of use cases. Could you go into some detail on what these use cases are going to be and how they will benefit your community, investors and traders.
I would like to start by explaining a bit about Utility tokens. What is a utility token and what is the misconception regarding it among the general users/traders.
Utility tokens are the native tokens of a particular project. They are a digital currency that can be utilised to avail a number of benefits attached to it while using the product attached to them. For example: Like in PUBG you add money and buy UCcash then further use that UcCash to buy stuff within the game.
Same is the case with utility tokens. These are a digital form of the cash that can be utilised within the platform for accessing the products attached to it. Most people don’t buy utility tokens with the mindset of utilising them on the platforms they are intended for but more in the form of Security where they invest and expect a return from it sooner or later. Since Most of the utility tokens have a limited supply therefore their price is not stable and fluctuates as per the market demand.
Many people complain after participating in a token sale that XYZ token is dead or its value is really low now etc but they fail to understand why that happens. It happens because the token has no use case in the product for which it was built hence there is no demand and it reflects in the price. Yes, some of the tokens which don’t have any working use case could pump on any given day because the markets are illiquid and it takes a couple 1000 $$ to move the price but they will probably eventually dump too. Only the tokens that have a real value, use cases for the projects they were built for will sustain in price in the longer run.
Buying a utility token is not an investment but committing to using that token in the platform they are attached to. If the users don’t see the benefit or need to use the particular token in a product then they should not be buying that token.
Now we come to the part of BRT’s utility cases and how it evolves within our platform.
Some of the basic use cases-
1. BRT can be used to pay fees on Barter Trade platform and a discount of 40% can be availed on the trading fees.
2. Upto 100% off or Zero trading fee for BRT holders. Threshold for to avail this offer is to hold 300k BRT for 100%, 200k for 80%, 100k for 65% locked up for at least 1 month with a maximum account balance of 100k USD. Beyond this balance there will be fee charges with respect to the Liquidity on the platform. These conditions are respected to change with the change in token’s price and the liquidity on the platform.
3. BRT will be utilised in the voting events related to listings or any other activity that is community based.
4. BRT will be utilised to pay any type of fee on Barter Trade’s platform.
5. Exclusive rewards, airdrops and bounty events for BRT holders.
6. Future integrations with traditional merchants/partners are in the pipeline.
Some Exclusive product based use cases-
Social trading: BRT will be utilised to pay the fee/commission of the master traders.
:Lock up 800 BRT or 15$ worth at current price to avail avail social trading services. It unlocks after a month and requires a Lock up renewal every month.
Algo trading: BRT will be used to pay subscription fees for all kinds of Bots on the Algo platform. Be it following custom made bots by traders or exclusive advanced AI bots built by Barter Trade——Powered by Flourishing capital AI. The subscription fees will range from 5-50$ worth BRT.
Battlegrounds: Exclusive, high rewarding tournaments for BRT holders. Prioritizing Battleground events rewards in BRT wherever possible.
Early access to Barter Trade's advanced features for BRT holders.
There are and will be a lot more use cases that add to BRT’s utility in the future as we continue to progress and build our products.
Q8. Partnerships are crucial in the crypto space and the Barter Trade has already secured multiple strong partners. As you might know we at the Gem Hunters are loyal supporters of Ferrum Network, and therefore are naturally interested in knowing more about your partnership with them.
We have been entering many partnerships recently. Several are just listing/cross collaboration partnerships preparing to offer a multitude of fundamentally strong digital assets upon operational launch. Other partnerships that we have secured are bilateral in nature and strategic such as the one with Ferrum. We have been in talks with Ian for a long time regarding how we can partner and collaborate.
Our thought process is really connected to finding synergies behind our products which are quite similar i.e providing users/traders with efficiency, ease of use, quality, transparency and products that really add value and utility to the market beyond typical speculation. What I can disclose about Ferrum for the time being, is that we have agreed to cross-listing assets among other collaborative endeavours which will be revealed in the future, while we continue to explore further mutual cooperation. We aim to strengthen our structural ethos, by surrounding ourselves with strong partnerships which are aligned in their aims and goals for this industry.
Q9. What is your approach on bringing in liquidity to the Barter Trade exchange order books? Are you going to use third party services for that? Or do you already have a strategy set up?
We will start by explaining why most exchanges have a lack of liquidity and what are the major reasons for it.
1: Not enough traders to trade the assets
2: Not enough volume or Fake volumes.
For any exchange to be successful. It needs to have a deep and liquid market.
Deep : A market with many buyers and sellers
Liquid : A market were assets can be bought and sold quickly
To ensure Traders, we are partnering with a number of projects with an agreement which will make our exchange the first exchange partner for them. Meaning, Our exchange will be highlighted as the preferred exchange within their communities. Announcements for some of these partnerships are already out and some will start rolling out in the upcoming weeks. We will also be partnering with a number of influencers to get the word out about our exchange, its products and why it stands out. Apart from this, there are a lot of other activities to bring users. On top of course, features of our platform that people would want to use to make their trading easy. Additionally, a lot of targeted marketing that will start post launch.
Where else does the liquidity come from? Some overview and than the answer
For any trading markets it is estimated (although we are giving a conservative estimate) that ever 1$ that is being put in the trading markets it is being traded at least 10 times (in traditional markets it is estimated at 200 times) meaning, if we are putting $1m of real liquidity in our platform our Real/volume would be at least $10m if it is being traded for. Whilst we intend to do a lot more in terms of bringing in liquidity. This is just an example. Our goal for the first 2 years is to bring $50m of real liquidity of our own and if we achieve half of it that would mean we have done incredibly well. Apart from this, a lot of other factors will add to this, market sentiment, growth of projects listed on our platform, growth of our products. Combining these, exact estimates are impossible.
2nd thing, Which is the professional approach for bringing legit liquidity. We will be partnering with a number of Liquidity providers, one of them being Houbi mena. Most liquidity providers provide liquidity options for top 20-30 coins on CMC but Houbi mena provides liquidity for 200+. This provides us with an option to list a lot of alts that are micro caps and are in high demand.
Why do most exchanges fail to achieve this? i.e. Liquid books.
There are only a handful of exchanges that have liquid platforms. It is because Projects don't really spend money on things that users want. Many popular exchanges don't even have a stop loss order integrated into their platform let alone other order types. Imagine, if someone is not spending money on developing a basic order type, which is fairly cheap to do so if you are doing an exchange business, then how can you expect them to spend money on liquidity, which is fairly costly. The answer to this is, they can do washtrading and fake volumes. Faking volumes and doing wash trading is incredibly easy and cheap. So, most of these platforms that you see in top 50 all of a sudden are results of wash trading because wash trading volumes have no limit. If you trade in those exchanges you will see that your withdrawals will mostly be stuck for a number hours to days. This is because of fake liquidity on these exchanges and lack of real volumes in their cold wallets. These are just some of the things to answer your questions, Although, no exchange talks about these things because if they do, users will become knowledgeable of their operations and then they will have to answer a lot of questions.
See for example FTX is just an year old exchange and already among the top exchanges, reason being, delivering quality products and fulfilling user needs. If you offer something that the market lacks, users will consume it irrespective of your entry to the market. Apart from this, there are a lot of other things that we will do to combat those things but they are confidential due to NDA's and security reasons but their effect will reflect on the platform when it is live.
Q10. You are currently running an IEO (disclaimer) in which we are also personally invested. Please give us some info on how the IEO is progressing and if you have reached some goals already.
First of all, we would like to thank you for supporting our project and participating in the sale. Yes, the IEO is currently progressing on the exmarkets. It has been doing really well. We crossed our Softcap within the first 3 days of the sale and are now midway into our goals. We have seen a lot of interest from some private investors in the past week or so. Although, we have not finalised any deals as of now since we want to fulfill the demand of the general public. The round 3 of the sale is starting in a few hours on Exmarkets.com.
Q11. And as always our last question is in regards to further exchange listings, but in this case it's not about listing the BRT token on other exchanges. We would like to have some details on your listing schedule for new projects on the Barter Trade exchange, as exchange users love to have a decent amount of pairs available.
Our aim as a boutique exchange is to grow into a platform where users find quality low cap projects which aren’t already listed on exchanges with decent liquidity. While providing trading services for the top 20 crypto assets, our focus will remain on researching, hunting and listing these top quality digital assets. We will have 0 listing fee criteria but we will have a very strong Token Assets Framework which every token needs to pass in order to list on our exchange. This is very rare in the exchange industry. We have this listing methodology in place to showcase our transparency and avoid any suspected conflict of interest.
The community will have a strong say in the projects that will be considered for our platform. We will always take suggestions from groups such as this one as a good indication of the demand. Post-operational launch, we intend to list 2-4 quality projects every month.
Confirmed listings as of now are:
1. FRM (Ferrum)
2. RPD (Rapids)
3. Game (Gamecredits)
4. MRX (Metrix)
At Least 5 other digital assets are currently in the pipeline, which we will announce once final due-diligence checks are ticked and liquidity terms are agreed upon.