It's a Nice Idea to Support Steemhunt to make an Agreement with Daybit Exchange for a Steem Trading Pair Market with SMT Tokens
The scheduled Launch of the SMTs has got many brains working towards its success. The steemhunt Dev team has recently pushed for support in a well laid out strategy to get a steem trading pair market for SMT tokens on Daybit. This is one of the listing negotiations that Steemhunt had earlier revealed.
The delays in the launch of the SMTs might cause problems regarding the gathering of funds and liquidity on projects that still have a lot of milestones to achieve based on their roadmap. Steemhunt is a crucial example of such projects, with the launch of Reviewhunt and Ideahunt still in view, to achieve token liquidity it will be important for investors to come in during IEO and after.
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price
For token liquidity to be achieved, there has to be a balance between buyers and sellers in order to avoid volatility in price thus the essence of the steem trading market pairs. If there are no buyers for a particular token, it will lead to a low trading volume which will directly lead to a fall in price. The creation of this trading pair will bring about exposure for the SMT tokens (since steem is already a well-established token with one of the biggest communities) and attract investors.
Plans for the Creation of Steem trading pairs market for the SMTs
The Steemhunt team is currently under negotiations with Daybit, an Elixir-based crypto exchange which was launched 3 months ago by Chain Partners which happens to be the largest blockchain company in Korea. After the launch of the exchange, they had a market volume that ranked 12th globally although the exchange right now has a low market volume due to some slacks on their day token.
I see this as a nice strategy by the steemhunt team to create partnerships with the exchange now that it is experiencing drastic fall in market volume. Since it is owned by the largest blockchain company in Korea and also a new exchange, plans will definitely be made to boom the market volume in the nearest future.
[Daybit App Interface]
The Steemhunt team presented four goals for an agreement with Daybit;
- Listing STEEM and SBD token trades.
Steem is the head token of the steem blockchain, then we have the SBD. These are the two existing tokens with market value on the steem blockchain. So they have to be trading on the exchange before their trading pairs can be created. This also will help increase the steem community with new investors. New listings on credible exchanges leads to higher trading volumes of the listed token resulting in a pump in token price. So the steem community in general stands to gain from this listing, as an increase in price of steem will lead to an increase in the reward pool.
- Support to list temporary tokens from the SMT candidate projects (such as ERC20 tokens).
Since the SMTs are yet to be launched, there is nothing like an SMT token now. The SMT-based dapps can only release tokens as tokens of other blockchains (like the ERC 20 tokens of the Ethereum blockchain). Steemhunt already has plans to distribute tokens as ERC 20 tokens initially, before the launch of the SMTs, then token swap to SMT tokens will take place. The plan here is not only for hunt tokens but for all temporary SMT tokens to be listed also. This will help create some liquidity for their tokens and an easy means for investors to acquire their tokens
- Create STEEM-paired market section and swap the temporary ERC20 to SMT tokens.
Just like Ethereum which has trading pairs with ERC 20 tokens on exchanges, the steemhunt team aim to come to agreements with Daybit to create steem trading pairs with the temporary SMT tokens and also support a swap of the main SMT tokens. Getting an exchange to support the SMT swap is crucial as many exchanges might not buy the idea because it will require much resources and dev work. If Daybit can agree on this term, it will be a big gain for the SMT-based dapps that will also want to list their tokens.
- Support fundraising for SMT projects via IEO (Initial Exchange Offering).
Fundraising is a very important in the growth of any new project. ICO is a more common means of fundraising in cryptocurrency. IEO is not so different From ICOs, the only difference is the exchange will be the ones to run crowdfunding activities and some marketing procedures. To participate in a IEO, you create an account with the exchange, and use the supported crypto for the exchange(e.g, bitcoin, ethereum, steem) to buy the tokens. Click here to read more about IEOs and it's comparison to ICOs.
Raising funds for the SMT temporary tokens will be vital to the smooth flow of activities and development of the SMT-based dapps as they build their token economy prior to the launch of the SMTs.
Everyone might not be in support of the exchange with which this agreement is being made due to its market volume, but it will be quite difficult to list on big exchanges especially when the main SMTs do not have a specific launch date. So this is more like a starting move. If this happens successfully, more exchanges might show interest in listing the SMT temporary tokens also.
Let's Support Steemhunt In Achieving This
If you would love for the above goals to be achieved with Daybit, @steemhunt is considering writing a MOU (Memorandum Of Understanding) to reach an agreement for the goals. To increase their influence with Daybit you need to vote them as witnesses on steemit so they can be qualified to lead the MOU. To vote @steemhunt as a witness, click here.
Also create an account with Daybit exchange so you can participate in an upcoming campaign.
SUMMARY
Moves like this before the launch of the SMTs will only create for a smooth drive and acceptance of SMT tokens into the crypto space upon launch. A step in this direction is worth taking.
Thanks for Reading
Links
Project repository: https://github.com/Steemhunt/web
Project link: https://steemhunt.com
Resources:
All pictures were properly sourced.
Github Profile: https://github.com/tony-duke
Hello @tony-duke!
Thank you for this comprehensive update. This sounds like a really wonderful initiative, so I appreciate the fact that you decided to make such an informative post about the news. The post is also well-illustrated with relevant graphic content.
On the content side, you did a really good job once again. The post contains valuable information regarding the team's future plans, and I certainly enjoyed reading your work. Steemhunt is a great project, and I think that all the support they have been receiving is well-deserved.
Once again, there were issues of style and proofreading, but not to the level where it hurt the readability of your post. In conclusion, you did a good job, and I expect to see more of the same in the future.
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[utopian-moderator]
Thank you for your review, @lordneroo! Keep up the good work!
Damn!!! This is a wonderful read. I actually I'm following steemhunt updates, and I saw the recent news about the potential agreement with Daybit Exchange for a Steem Trading Pair Market with SMT Tokens, and I didn't understand it very well, but you explained this very well. Nice work
I really do hope Daybit Exchange agrees to this agreement because it would definitely be a major forward move towards to steem and other SMT-based Dapps success.
I have voted for steemhunt to be a witness.
Great article
Resteemed
Yeah, I support the move, and it does not only benefit the hunt platform but also all SMT based dapps with their own crypto. It will also serve as an opening for multitudes of tokens that will still be created on the steem blockchain to be listed.
Listing before the SMTs might be a good idea and a bad idea also. If things go south and liquidity is not attained during this listing, it will create less value to the SMTs.
So this has to be done with utmost caution. So I'm rendering my support too. I've always been a fan of steemhunt.
I am Happy that steemhunt dev are showing a strong will to continue to move forward with this project. I have no doubt about the positive outlook of this project cuz its has got a strong use case.
It's a very detailed article on this great project @tony-duke.
Appreciate
Much love
@eurogee
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