Prediction Markets, where people invest in the outcome of an event, have not broken into the mass market yet. However, Stox’s platform, as well as its ICO, were thrust ahead when boxing giant Floyd Mayweather posted an Instagram post about Blockchain-based prediction markets.
Trading the outcome of an event in this prediction market allows for anyone to become a trader, with no need for knowledge of markets, rather on chosen events. In a prediction market, an investor can trade the outcome of anything from a football match to an election result, reaping the rewards if they are correct.
And like an investment market, crowd wisdom can draw in investors with dead-certs visible as a huge array of investors will congregate on a result of an event.
Breaking away from traditional online investing has been difficult as the market is quite a niche due to the complicated nature of trading. However, it is through Blockchain technology that this world of trading can be made available without the usual fees and red tape around trading. Stox has utilized the Ethereum network and it’s smart contracts to make trading and predictions on outcomes, something that can be autonomously completed.
The hyper-rich boxer posted
The fact that Mayweather sees the value in prediction markets, which is comparable to gambling in many respects, means that anyone with any interest in certain events can hedge their knowledge as a form of investments.
The new black
The prediction market space is still brand new, but its popularity is unparalleled. Gnosis nabbed the record for the fastest ever ICO back in April.
The interest in prediction markets has spread beyond just cryptocurrency users as Stox has attracted established business providers in the trading game to its platform while enticing more to join on.
Ophir Gertner, founder of Stox said of this partnership with a traditional investment house:
“Stox is a transformative step in the journey of Invest.com Group, as it allows us to combine the power of Blockchain with the array of infrastructure, technical, sales and marketing assets that are currently powering Invest.com.”
Furthermore, Stox will be using that STX token for all transactions on its platform. The single token economy is meant to boost its demands as it is used for transaction fees, syndicate payments and oracle payments.
With many ICO, there are always fears of low liquidity and the usual high volatility that comes with new cryptocurrencies. However, moves have been made to address these concerns with the use of Bancor.
Stox has teamed up with Bancor for its STX token, as the company claims to have a liquidity mechanism for tokens that can produce an unlimited liquidity pool and apparently resolve the risks of having low liquidity.
Eyal Hertzog, chief of product at Bancor backed up this idea of guaranteed liquidity:
“We are excited to collaborate with Stox and support their effort to become a pioneer member in the Bancor network. We believe that the guaranteed liquidity and the stability of STX will benefit token holders, the Stox project at large and provide a strong case study for the Bancor protocol.”
With Invest.com on board to be their first provider – a trading house that sees eight mln trades annually -, the belief is that there will be no need for any pegging or stabilization mechanisms.
The Stox Token sale is restricted for persons who are citizens of or residents or domiciled in the United States of America and/or entities incorporated, established or registered in or under the laws of the United States of America.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.