We’re happy to announce the first exchange to list our DTX token upon release after the main token sale. CoinFalcon, a smaller European cryptocurrency exchange based in the United Kingdom, will also be running a ‘battle’ to give away 10.000 EUR worth of DTX to top traders on the exchange. DataBroker DAO community may be curious about CoinFalcon, so in this blogpost we spotlight the more important features of this exchange.
CoinFalcon’s History and Mission
CoinFalcon was founded by Jordan Steeves and opened its doors in October of 2017. The business is located in London, but Steeves is from Washington State and lives in San Francisco. CoinFalcon’s goal is to provide fast, straightforward exchange of cryptocurrencies, initially allowing the purchase of Bitcoin, Ethereum, Litecoin, and IOTA with a range of trading pairs. It is accessible by browser or smartphone and offers a community chatfeature for greater transparency.
CoinFalcon is a European exchange with a focus on service to citizens of the European Union. Under its sign-up disclaimer, CoinFalcon states the company does not accept residents or citizens of Iran, North Korea, Sudan, Syria, and the United States. Fortunately, we’re actively trying to get listed on numerous other exchanges as well, tocover some of these countries for our community.
Like with most respectable exchanges all deposits are free. CoinFalcon charges no network fee for Nano and IOTAwithdrawals, and fees for all other supported currencies vary. They recently changed their trading fee structure and makers now have a 0% fee!
ConFalcon offers 24/7 live chat support. Additionally, CoinFalcon will attempt to recover cryptocurrency that is mistakenly sent to the wrong address for 20€. Of course, they do not guarantee results.
Buy with Euro Buy cryptocurrencies by depositing euro’s first. For this you will need to verify your account like on most exchanges, which will take 5 min. approx.
Speed CoinFalcon claims to offer instant trading. After testing the exchange, we’ve found this to be true.
More than 50 coins available If you follow the exchange on Telegram you will notice a very consistent listing of tokens. Here you can find all tokens and cryptocurrencies that are available to trade on CoinFalcon.
Reputation CoinFalcon appears to have a good reputation among users for its ease of use and low fees. They have added more options to their list of supported coins in the months they have been in business.
The disadvantages of CoinFalcon as an exchange are that it is not open to users from a number of countries, including the United States. Traders must also use cryptocurrencies and cannot deposit or withdraw in any fiat currency. This, of course, means that they do not accept credit cards or PayPal. The CoinFalcon mission statement focuses on serving as an alternative to modern banking and finance.
A great tip we would like to give to the community is to make sure to check the buying and selling price to avoid unfair prices. Due to the overly-simplified UI and sometimes low liquidity, inexperienced users may not know the difference in buy and sell price, leading them to simply push the buttonand trust that the transaction will be fair.
CoinFalcon vs. DataBrokerDAO
The community can look forward to DataBroker DAO debut in the early June after the main token sale, the right date is still to be determined but will be clearly communicated through all our social channels. We’ve also arranged a battle between traders to win 10.000 EUR worth of DTX. All the details about this trade volume competition will be communicated in the near future as well.
We’re aware that this is not a biggest exchange, but after seeing the impressive UI & UX we believe it’s a good choice for most traders. Furthermore, this is a great step forward to help us get listed on some major exchanges in the future.
Any questions, opportunities or partnership requests are welcome on any of these channels:
Until June 30 2018 our token sale is live. However, we’ve noticed a striking amount of contributions that fail due to insufficient amount of Gas provided. This blog post will emphasise the amount of Gas needed for a successful token sale contribution. On our website you will find a link “How to buy the DTX token”, with an extensive explanation to successful conclude our token sale. We strongly recommend you to go through this document if you’re inexperienced in token sales and ICO’s.
What is Gas and Gas limit?
Every transaction in Ethereum network requires a resource called Gas to be executed. Amount of Gas corresponds to the complexity of a transaction. If you set Gas limit too low, your transaction will fail. Think of it just like having gas in your vehicle (ETH in your wallet), and the destination is the ICO address. If you don’t put enough gas in your vehicle to get to the destination you’re going to, you won’t make it. Lower Gas setting will take longer such as driving a fuel efficient vehicle at slower speed. In MyEtherWallet you can set desired Gas price in the top right block.
DataBroker DAO was initiated in 2016 with a clear vision, aspiring to unleash long-tail creativity with the use of sensor data to facilitate the conversion of incredible ideas into value adding services. After hearing your concerns and questions on our Telegram channel, we’re happy to announce a clear roadmap for DataBroker DAO!
SETUP AND ONBOARDING OF AN EXTENDED TEAM
One of the larger challenges for DataBroker DAO will be scaling the team fast enough to cope with market demands. Onboarding a new sales team and additional developers is a daunting task. Since September this has been an active focus and this will be the case for the years to come. In Q2 2018 this will be priority number one.
GATEWAY OPERATOR INTEGRATIONS
The main road to mass adoption is integrating with gateway operators that enable the onboarding of millions of sensors in one go. The DataBroker DAO platform will be integrated with the gateways of these gateway operators. We will be working on both common standards and libraries to ease integration, and perform the initial integrations for the first operators in the DataBroker DAO Alliance. Integration with these initial gateways is planned for Q2 2018.
IMPROVING THE (WHITE LABELED) FRONTEND INTERFACE
On the one hand is the focus of DataBroker DAO mostly on the dAPI. This is where the data streams will flow over, and combined with the smart contracts the core value of the platform. We expect quite a few gateway operators to use the dAPI to build a marketplace in their existing platforms. There will however be quite a few that do not have an integrated approach, or no existing systems to integrate with. That is the reason we will build a DataBroker DAO marketplace frontend and offer this frontend in a white labeled form to gateway operators. When first launching the platform this interface will be a basic one, and will require a diverse set of skills (information architecture, design, web and mobile development) over in the first two years to build a tier one frontend. This will be a heavy focus for Q3 of 2018 to reach the next guideline.
PRIVATE AND WHITELISTED SALES
Working with our alliance members has taught us a lot. Including the fact that there is a large set of data in the market that companies want to sell to either anyone except a competitor, or to just a whitelisted group of companies. As such this capability will be integrated in the smart contracts from the start, and work in the frontend side will continue into Q4 2018.
DATA ENHANCEMENT INTEGRATIONS
Having easy access to large amounts of data opens up a wealth of options for many startups across the globe. Enhancement and aggregation will provide even more valuable data than the raw data itself. The team will look for, and work with partners in the Alliance to provide valuable services based on the raw data by providing libraries and integrations for commonly used tools. Integration with AI tools (like provided by the large cloud providers, or Tensorflow) come to mind. Initial integrations will be made with the data processors in our Alliance in Q1 2019.The DataBroker DAO Main token sale is open until June 30th. To contribute please read the following guide.
Any questions, opportunities or partnership requests are welcome on any of these channels:
In this article we’ll discuss the rationale underpinning the DTX price. We will run through the business case and commercial targets for DataBroker DAO for the years to come to demonstrate how the DTX price was set.
The initial price of DTX
To determine the market potential of DataBroker DAO,we researched the potential market for reselling Internet of Things (IoT) sensor data. As a starting point, we analysed the primary market for IoT sensor data, that is, the amount that is spent annually on a global basis by companies, governments, academics and individuals to benefit directly from the data generated by the sensors. We define the primary market as the market of beneficial owners of sensors, namely the companies, governments, academics and individuals who purchase, deploy and maintain IoT sensors for their own benefit.
According to Gartner, this industry grew from a 600 billion USD in 2015, to a staggering 900 billion USD in 2017. According to the same study, the primary market for sensors is expected to continue growing at this pace of growth for several years to come and is reaching 1.3 trillion USD in 2020and 1.6 trillion USD per year by 2024.
This expenditure is to purchase, deploy and maintain the 9 billion sensorsthat existed in 2015, the 19 billion sensors in 2017, the expected 34 billionsensors in 2020 and the 45 billion sensors deployed globally by 2024. Suffice to say, the primary market for IoT sensor derived data is staggeringly large.
With a clear understanding of the current and expected size of the primary market for IoT sensors for the years to come, we applied some practical business assumptions to arrive at the expected value of the data generated by these sensors for these primary market participants. To understand the underpinnings of these assumptions, one has to have insights into the way that organisations and enterprises manage investment budgets.
Investment decisions within enterprise typically must pass a threshold, an investment payback period. That is, they apply a maximum “break-even” point for investments that they make, such as investing in deploying a network of sensors to improve operational efficiency. If it cannot be demonstrated that an investment will pay for itself within this period, the investment will not be made. Based on our experience, this payback period is typically 18–24 months.
Thus, to determine the value of the data to the enterprise that the sensor deployment will generate, we divide the total market for sensor investment by the payback period of 24 months.
For instance, 2015 saw 600 billion USD investment by primary sensor owners. The value of the data per year for these primary sensor owners is estimated to be 300 billion USD, 600 billion USD / 24 months = 300 billion USD per year. Following the same set of assumptions, we anticipate that the value of data produced in 2024 will be 800 billion USD per year.
With the primary market value estimated, we analysed the secondary market value of this data. By secondary market we refer to parties who purchase the data provided and priced by primary owners of the IoT sensors. Based on our commissioned research on this, it is expected that 1 out of 10 sensors will be of interest to potential secondary market participants and that on average there will be 1–3 buyers of each interesting data stream.
On this basis, we estimate that the potential value of the secondary market for sensor data to secondary market participants reached between 45 and 135 billion USD per year globally in 2017. With the same set of assumptions about the value of sensor data to secondary market participants and the anticipated acceleration of sensor proliferation globally, we estimate that the secondary market for sensor data will grow to between 80 and 240 billion USD per year globally by 2024.
Interesting to note is that, according to McKinsey, in 2015, there were about 5000 companies active globally in the business of procuring data from diverse sources, enriching, aggregating and selling on data and value added insights to their clients. This industry had, at that point, grown to a 150 billion USD per year industry without access to any of the sensor data that we make available via DataBroker DAO. We anticipate that this group of companies will be early buyers on DataBroker DAO as we provide them with access to data that was previously out of reach, further enhancing and growing this existing industry.
With the top down calculations of the size of the primary and secondarymarkets for IoT sensor data in hand, we spent a great deal of time throughout 2017 discussing with marketplace stakeholders about the willingness of sensor owners to sell access to their streaming data to determine bottom up how many sensors will eventually be on DataBroker DAO and how much sensor owners would charge. For the first part, we set our 2024 target at 225 million sensors on the platform, which will represent less than 1% market share at that point in time.
The key insights gained were equal parts logic and pricing psychology. There is a logical price based very much on the above calculations and there is an equally important psychological dimension to purchasing behaviour. Prices such as 0,245 per week seem abstract to buyers while 1,00 per week seems more understandable from a psychological perspective.
Based on this bottom up exercise and taking into account the non-rational elements in pricing, we determine that the optimal pricing for DTX is at the point where one DTX token represents the average value of the data from a sensor for one week. This allows us enough granularity (at 18 decimals) to work with micropayments and fits the mental frame for pricing. This combined with our 2024 target of 225 million sensors, leads to the pricing of the DTX token:
We determine the corresponding price per token by looking at the market predictions in the previous section for 2024. At that time we project to have 2.5 billion USD flowing through the platform for 225 million sensors. The average sensor has a value of ~12 USD per year, ~1 USD per month, or 0,25 USD per week and as such the value of 1 DTX token should equate initially to this number. At an ETH price of 1000 USD / ETH, 1ETH will get you 4000 DTX tokens. We determine the maximum number of tokens issued to be 225 million, the amount of sensors on the platform in 2024.
One of the good things about cryptocurrency is the idea that we don’t need to trust anyone, as well as being in full control of our own assets. So, if you’re still unaware, having your coins on Binance, Bittrex or any other current popular exchange, doesn’t assure your coins are stored safely. If you don’t own the private key to your wallet, you don’t own the coins.
The use of centralised exchanges may contribute to the ecosystem from a usability perspective however it is somewhat contrary to the principles of cryptocurrencies and represents a clear trade-off between usability and security. The latest news about the Bitgrail hack, should’ve opened a lot of eyes in the cryptosphere. It doesn’t only have bad financial influence for people’s gains, but exchange scams and hacks have a bad PR impact that ruins the reputation of the crypto space. If you’re here for the technology, you should understand that we cannot achieve the ideological goal of decentralisation without decentralised exchanges.
Unlike banks, where you have semi-protection from the government, a centralised exchange will only choose to refund you if it’s financially convenient for them. In many cases an excuse labelled ‘a hack’ will be made to deflect attention and skirt responsibility for paying out customers. Don’t believe me? Well, let’s have a quick stroll down the memory lane. Here are the most popular exchange downfalls from the past few years.
Mtgox By the end of 2014, being the largest bitcoin exchange in the world, Mtgox became a victim of a massive ‘hack’ and lost 740,000 Bitcoins that belonged to its customers. This resulted in the exchange filing for bankruptcy, whilst users of the exchange lost their assets.
BTCe The exchange that was founded in 2011, allegedly ignored KYC laws in order to cater to a “specific” customer base. After a fine of $110 million against BTC-e for facilitating crimes like drug sales and ransomware attacks, the exchange was forced to close it doors in July 2017.
Coincheck Exchange In January this year, hackers broke into a cryptocurrency exchange called Coincheck Inc. and made off with nearly $500 million in digital tokens. It’s one of the biggest heists in history, with the exchange losing more than 500 million of the somewhat obscure NEM coins.
Bitconnect During a bear market in January 2018, Bitcoin investment and lending platform Bitconnect abruptly announced it is shutting down it’s services. Although Bitconnect doesn’t really count as an exchange, it perfectly shows how easy a centralised entity can shut its doors leaving it’s users in the cold.
Bitgrail BitGrail was until recently one of the main portals for the trading of Nano, a cryptocurrency formerly known as RaiBlocks. Last Thursday, BitGrail founder Francesco Firano claimed to have discovered that 17 million Nano tokens, then worth roughly $195 million, had been stolen by hackers. Which basically means, everyone who had their Nano tokens on BitGrail, can whistle for it.
Hacks are not the only issue with centralised systems. When interest peaks and new account openings spike, exchanges tend to cease sign ups without warning for new customers. Moreover, centralised exchanges are known to reduce withdrawal limits without warning and having unscheduled downtime preventing users access to their funds. Suddenly delisting coins is also happens, resulting in profit loss in some cases. For instance, this recently happened to CEX.IO. And the worst part? These exchanges act like totalitarian governments and demand high prices to get a coin listed.
Unfortunately most people who are new to the market have no idea what a decentralised exchange is, or more importantly why one would be needed. A lot of people who joined the crypto space in the past half year, did it mostly to “ride the wave” of financial gains. Furthermore, there is sometimes friction when a token changes exchanges as this requires people to change exchanges as well. It also falls short in that the most existing decentralised exchanges lack trades and liquidity. This seems like a chicken and eggissue. Because unless there is enough volume on DEXs, it will prevent people from using them.
Fortunately, the near future is looking bright for decentralised exchanges. We see more and more interesting projects surface that offer amazing functionalities and beautiful UI’s that should ease adoption. They allow you to exchange values peer to peer, meaning that you never have to submit your private keys to a third party upon deposit. You hold your keys, you are in control.
Trading in privacy
Protecting your funds from hackers
Retaining control of your assets
Trading diverse coins (not limited by central entity)
No hacks or server downtime
The following DEXs are the ones we are investigating for listing the DTXtoken:
Waves’ DEX allows you to trade any token pairs that are on the blockchain. In addition, there are no restrictions on withdrawals from the DEX. As soon as your transaction is complete, the cryptocurrency will appear in your wallet.
EtherDelta is a decentralized Ethereum token exchange, brought to you by Etherboost. The exchange currently has only one fee, which is the 0.3% buyer transaction fee. Deposit, withdraw, and seller transaction fees are all free.
IDEX is allegedly the fastest and most user friendly decentralized Ethereum exchange available. With support for market orders, instant order books, and instant gas-free cancels, IDEX provides traders with the speed of a centralized exchange combined with the ironclad security of decentralization (including support for MetaMask and Ledger Wallet).
Blocknet DEX (Bèta launch March 1st)
This is a decentralized exchange we’re most excited about. Blocknet DEX will have no central points of failure and will mimic the functionality and trading experience of central exchanges.
BarterDEX has decentralised order books that initiate Atomic Swaps through light-weight Electrum servers. The result is a basis for a secure and universal decentralised exchange.
It’s based on the principles first established by EtherDelta and uses a very similar smart contract with some minor additions. But it features a completely rebuilt orderbook, UI and has some extended trading capabilities like instant orders.
Radex is a secure, efficient decentralized exchange on the Ethereum blockchain. All transactions happen directly in the smart contract added security. And because Ethereum is a public blockchain, other developers will be able to write their own applications on top of this exchange, such as alternative user interfaces and trading bots, and benefit from shared liquidity without having to pay for it.
As you have already figured, DataBroker DAO is looking to list the DTX token on decentralised exchanges, primarily for the additional security for DTX token holders. That said, the choice for a decentralised exchange does not mean DTX will not be available on some popular exchanges in the future. Centralised exchanges are definitely a needed bridge to the coming decentralised ecosystem today as they provide fiat on-ramps into the crypto space. It’s also important for us that our customers can easily exchange our token with one another. We believe that both centralised and decentralised exchanges can successfully coexist, giving the token holder more options and allowing them to decide what trade-offs they want to make rather than imposing a one-size fits all approach that forces a choice on them.
This blogpost is mostly an informative piece to highlight the importance of decentralisation. We care profoundly about this amazing technology like the most of you. Being fairly confident that the transition to decentralised exchanges will happen soon, the only thing we can do at the moment is spread the word about how to store assets in a safe way.
Any questions, opportunities or partnership requests are welcome on any of these channels: