CoinMetro is a new crypto project that has a lot of elements of the crypto economy packed into it, so bear with us as we go through its value proposition. Before we proceed into the nitty-gritty details, let’s look at a high level bird’s eye view of the project. What CoinMetro is trying to do is to be a one stop shop for the entire crypto economy. No wonder it’s a complex project – the crypto economy is a fairly complex machine.
CoinMetro isn’t the first project with such an ambitious plan, however. So why do they warrant a serious look? Because of the team’s experience and background in traditional Forex markets. If you’re not aware, Forex is a huge market already, and a lot of cryptocurrency and crypto-asset trading has an overlap with the traditional forex markets. First, just to get an idea of how large the Forex market is, here’s the market compared to more traditional asset classes like stocks. Notice anything?
Now let’s dive into some specifics. At its core, the CoinMetro platform is an FX like platform, which Forex traders would be familiar with. However, there are lots of extra features specific to the crypto world. Here are some features that stand out –
- Low fee, high-availability crypto exchange.
- Ability to trade with fiat, i.e. buy your favorite crypto-asset with your local government money like USD.
- Lots of different crypto-assets to choose from, with secure custody of funds (partnered with BitGo).
- A crypto debit card that lets you withdraw your money for regular, everyday purchases, with a crypto to fiat conversion that happens in the background without you knowing or being involved in.
- A lending-leverage platform that lets long-term traders lend their crypto to traders looking to leverage their crypto bets. Makes savers earn interest and traders leverage to amplify their profits (and losses too!)
- Trading tools and analytics platform, similar to what Forex traders are used to, i.e. more sophisticated analysis and charting tools than what crypto traders are used to.
- Ability to add complex order types instead of just standard types like Limit and Market. Again, something Forex traders may be more familiar with rather than regular crypto traders.
- High leverage OTC crypto trading, with leverage of up to 1:50, similar to what traditional forex markets offer instead of traditional crypto markets.
- Easy diversification for long-term investors via an ETF-like crypto investment product that investors can easily buy to diversify their crypto wealth without paying huge fees.
- A tokenized asset management platform with the help of Ethereum smart contracts, so that a ‘hedge fund like’ model of crypto investments can be implemented by the CoinMetro platform.
- An ICO platform that lets investors buy new ICO tokens with ease, and benefits the projects in that the tokens can gain instant liquidity and price discovery on the CoinMetro platform.
Whew, that’s a lot of features to list out! The point is not to make a huge list though. It is important to know how all these fit into the platform as a one-stop shop for crypto traders and investors. Today, all these different features are highly segmented in various exchanges. There are custody risks, exchange hack risks, inability to trade during high volumes, and a bunch of other issues with the crypto markets that we are all familiar with. What CoinMetro is trying to do is bring them all under one umbrella. In addition to the single umbrella policy, the team is trying to take cues from the more established Forex markets, and bringing that level of quality and professionalism to the crypto trading world, which has been lacking so far.
The appeal of CoinMetro’s platform is that if the team executes on the vision, then crypto traders don’t need to go anywhere else for their needs. The platform covers everything from ICOs to Bitcoin, from crypto-trades to fiat-trades, from long-term investing to short-term trading, from earning interest to leveraged trades. There’s something for everyone, and if the community adopts the platform, over time, the network effects can be strong and the platform can become the preferred ‘home’ of crypto traders and investors. Obviously, there remains execution risk, but the vision is a product that the community can immediately benefit from.