ICO Date: November 17 to December 10, 2017.
SPECTRE (short for Speculative Tokenized Trading Exchange) is the world’s first broker-less, financial trading platform with an embedded, decentralised liquidity pool.
When trading, all transactions are governed by smart contracts, which pay out 2% dividends to ICO token holders and 2% to SPECTRE as a technology fee, each time the trader takes a trade. This is different to the traditional broker models where brokers mostly get paid on trader losses.
A result of all the above is the creation of a fully transparent and fair trading environment with no conflict of interest between involved parties; a provable fair battleground where traders can fairly trade against the market without intervention.
BACKGROUND.
The simplest form of trading is known as a ‘digital’ or ‘binary option’. It is the quickest and easiest way to make a large return (between 70-90% ROI) based on capital invested in any given trade. A trader can profit simply by guessing correctly, whether the price of an asset will rise or fall between now and over a pre-determined period. For example, if a trader speculates that the price of the Euro (relative to the Dollar), will rise between now and over the next 10 minutes and wagers $10.00 on this, most digital option or binary option brokerages will reward him/her with a 75% ROI on that trade (or $7.50 in profit), if he/she has correctly guessed the outcome after the 10-minute expiry period.
Unlike random events such as dice-rolls or coin-flips, research into the financial markets (either through chart pattern technical analysis or macroeconomic analysis of the underlying asset’s fundamentals) can allow a trader to increase their odds of winning trades from just 50% to up to 80%, over time. Owing to the simplicity of the digital options market, the potential ability to ‘beat the market’ through research and overall addictive nature of trading, growth in the digital and binary options market went hyperbolic during the 2008-2015 period, reaching a peak annual traded volume of $30bn.
Alas, greed overcame most brokerages and many now regularly tamper with price feeds, pay-out percentages and have often started to rob clients of their capital by trading their account to zero or even blocking withdrawals. This problem is not ring-fenced to just digital options but also classic retail FX trading, where so called ‘B-Book’ brokerages directly trade against the client.
Prominent examples of fraudulent activity in both, classic retail FX trading and digital options include Banc De Binary, a digital options broker that was ejected from the U.S for defrauding clients (and went on to shut down in 2017), FXCM4, a major FX trading broker that traded against clients and a range of others. All problems have a common genesis; namely the control of client funds and the fact that is rests solely with the broker.
SPECTRE, which is built on the Ethereum blockchain, removes the broker out of the picture entirely, thereby disrupting the current model and empowering the trader. SPECTRE’s aim is to disrupt the digital options and classic retail FX/equities trading industries and lead a paradigm shift.
HOW IT WORKS.
SPECTRE offers a completely decentralised liquidity pool. Clients trade against SPECTRE’s balance sheet (the ‘liquidity pool’), which is initially capitalized and owned by ICO (initial coin offering) investors. In other words, SPECTRE’s liquidity pool is owned by token holders who initially invest in the ICO and therefore own a part of SPECTRE’s profitability, into perpetuity. Tokens are publicly traded on all major crypto-currency exchanges and thus can be held by anyone.
The trading process at SPECTRE works as follows; the retail trader signs up to the website but deposits nothing. Instead they simply open a crypto-wallet on the website and send funds to that address (this process is verified and governed by the Ethereum blockchain and so, is trust-less and secure). Major off-site crypto-wallets can be connected to this wallet as well. This ensures that funds cannot be accessed or handled by SPECTRE employees or anyone apart from the trader him/herself.
When a trader opens a trade (long or short) for a specified duration, the price of the asset they have wagered on, is monitored by a live, verifiable price feed from multiple audited financial sources such as Oanda. The eventual outcome (win or loss) is determined when the trade expires, by comparing the price of the underlying asset upon expiry, with that upon entry.
If the trader has lost the trade, their wallet is automatically debited for the amount wagered and SPECTRE’s liquidity pool is credited, net of 2% trade fees which are paid directly to SPECTRE’s operational expenses and 2% dividend, which is paid out to SPECTRE’s dividend-token holders (not utility-token holders, who have a different set of rights explained later). The remaining 96% of the trader’s loss, goes directly to expanding SPECTRE’s liquidity pool.
If, on the other hand, the trader won, he/she receives an instant 75% ROI (return on investment) and SPECTRE’s liquidity pool is debited for that amount. Again, in this instance where the trader has won their trade, a 2% operational fee is paid to SPECTRE and 2%, to the SPECTRE token holder as dividend. Token holders do not face any losses because of this pay-out to the winning trader. This way, SPECTRE and token holder profits are not driven just by losses but instead by overall volumes.
Note that the pay-out can, in certain instances, be as high as 93%, depending on volumes in the system at the time. This entire process is governed by a smart contract built on the Ethereum blockchain and cannot be tampered with through human intervention.
USE CASES.
Trading platform.
Unlike trading platforms out there today (such as MT4/MT5/Spot Option/Techfinancials etc.), SPECTRE has a range of trader protection algorithms which help with emotion control, risk management, trade opportunity recognition and the ability to track one’s stats including strengths and weaknesses through time. SPECTRE learns the trader’s weaknesses over time and alerts them when they are about to make a silly mistake.
TOKEN USES.
SPECTRE will have two types of tokens in issue; each separately traded on different exchanges, in order to be compliant with ever-changing regulations and cater to different types of investors.
One is the dividend-token, which has 2 types of dividends for the SPEC token holder. One type is a monthly dividend based off of trade volume. This dividend is paid in ETH. In order to receive that dividend you would need to have your SPEC tokens on a personal MEW or any other ERC20 token wallet that you control. If you don’t have it on a wallet you control then you will not receive the dividend. Say for an example you have your SPEC sitting on an exchange, the exchange would receive the ETH dividend as they control the wallet that it is sitting on.
The second type is a year dividend paid each January. This dividend is based on the excess ETH created each year in the liquidity pool. Each year a benchmark for growth of the liquidity pool will be set. If that benchmark is surpassed the excess ETH’s will be distributed to the token holders and the Spectre team. This division will be 70% to the token holders and 30% to the team. This dividend is paid in ETH also. In order to receive that dividend you would need to have your SPEC tokens on a personal MEW or any other ERC20 token wallet that you control too.
As for SPECTRE’s utility-token, this does not pay financial dividends, however, it gives vital in-platform privileges to traders which increases their chances of capital gain through time. These privileges are:
- 1-5% higher trade pay outs IP. All trade expiries on smart option contracts.
- All assets (not just a few per asset class).
- All trade indicators (not just the ones found in the MVP).
- Exotic trade types (smart option contracts such as knock-in-knock-outs, barriers, ladders and more).
- Spectre Financial Education Academy (SpecED).
What further pushes the utility-token’s value over time is the token-buyback-program. SPECTRE’s team will be using 3% of fees generated on the system to purchase SPECTRE utility-tokens as part of a wider token-buyback-program. No more than 15% of outstanding supply will be purchased.
ROADMAP.
HOW ADVANCED IS IT?
The public alpha of the SPECTRE trading platform is ready for you to enter and try out on the website.
SIMILAR PROJECTS.
Exchanges.
SPECTRE, despite its name, is not an exchange in the classic sense in that its liquidity pool acts as the counterparty to all trades. This is advantageous when compared to exchanges as these have no liquidity pools and are dependent on a large volume of users in order for traders to be able to enter and exit trades in a highly liquid fashion. SPECTRE’s model, by comparison, works with as little as 1 user or millions of users.
Over time, as the SPECTRE user-base crosses a few thousand active traders, it may be possible for the SPECTRE’s conditional liquidity model (CLM) algorithm to match most if not all trades perfectly and thus truly become an ‘exchange’ in the classic sense; until then, the perpetual liquidity model serves the purpose rather efficiently.
Existing brokerages.
Existing brokerages that are powered by online trading platforms such as Spot Option, London listed Techfinancials, Tradesmarter and Panda tend to power the digital options market. None of these have decentralised liquidity pools or tokenized balance sheets as offered by SPECTRE.
While CFTC regulated NADEX does allow for the exchange of offsetting digital/binary option trades by matching traders, liquidity issues do reduce the trading experience and funds are ultimately controlled by the broker.
As for the FX market, Metaquotes Corporation offers most brokerages their MT4/MT5 based trading platforms which allow traders to access the global liquidity pool. None of these platforms, however, have any trader protection measures in place, as SPECTRE does.
Prediction market platforms.
As for recently listed prediction market platforms such as Augur and Gnosis, these are exchanges that match bets on any market that users wish to add to the platform. Users are required to offer their own liquidity initially, in hope that other traders join and play. This is a less efficient and highly user-growth dependent model, when compared to SPECTRE.
USER REVIEWS.
[This is a great coin! Best for world’s first broker-less financial trading platform with an embedded, decentralised liquidity pool!]
[I have been trading binary options for years, and seen the rise and fall of the whole industry. Eliminate the brokers and DRAIN THE SWAMP! Good luck to your project! I will definitively follow this with great interest.]
[This makes no sense. How can you sustain a 75-90% return just by guessing that the price will go one way or another? If you guess it goes up and the price goes up only by .1% your still right, but are going to get a 75% return? The money come from the liquidity, thus detracting from the whole network value. So if people do guess right, the network is worth less even tho your personal value went up. So if you achieve your goal(making smarter traders), then you company will be worthless.
If people do guess wrong, then they lose everything nd so if your company succeeds then majority of users have lost money.
Your page states that a person needs a 57% correct guess rate (minimum) to make profit, due to the 2% fee on every trade(both entry and exit).
And your trading robot will advise them if they make a mistake? The same robot that controls the price points, trade access, and the liquidity pool? It sounds like you replaced the brokers with an automated version.
All in all, I feel you make this sound like it’s a win win for all whIle also sayin that the majority will lose.]
[Trading is a zero-sum-game. One trader’s wins are another’s losses. No one is re-inventing the wheel in SPECTRE. We are not a hedge fund telling traders if they invest, our platform will make them money. What we are doing is removing the broker out of the picture that intervenes disallowing traders to have a fair battleground against the wider market (i.e even stand a chance of making some profit). In our case, the broker is replaced by a decentralised liquidity pool that acts as counter party to most trades (where our algorithm does not match one trade against another traders). Out of 10 traders, when provided with a fair battleground, around 6-7 lose money because they cannot beat the market (Oanda, the world’s largest FX broker’s latest quarterly data supports this fact and the fact that its a billion dollar company lends support to the fact that SPECTRE’s liquidity pool will grow substantially as well, since we’re basically a decentralised Oanda but multi-asset-class).
In order to beat the market in digital options, you need to generate a win rate of around 57-58% as payouts upon wins are 75-80% on average. Those who invest the time and gain experience and are talented can do so and sustain win rates above this hurdle rate thereby generating capital growth over time. These traders will be rewarded from the liquidity pool and yes the pool shrinks after these payouts. However the masses cannot beat the market as data from millions and millions of trades over years shows. This means there is sustained liquidity pool growth over time of which a big portion is paid out to token holders as dividends. Network value on aggregate, ergo, increases.
Please follow this closely: Both SPECTRE and token holders receive revenues/dividends when traders trade; whether they lose or win is irrelevant. We are a technology platform that charges the liquidity pool a transaction fee. The network’s value is “worthless” if all traders win in the long run which is practically impossible. Statistics won’t change just because we obviate the broker. You are talking about tail end of the distribution events that have <.0000001% probability of happening. Sure, there are periods a few hours or days where the liquidity pool may be stagnant or decline but over time growth is going to continue upward, thereby increasing the networks value. And yes, if a trader loses by incorrectly predicting the direction of the market, they lose their capital investment for *that* trade, nothing more. It’s not like leveraged trading where you lose more than the amount invested. We have no trading robots, not sure where you gathered that from.]
[Question: Kay thanks for the replies, I did not find any mention of two kind of tokens on your website, is it a latest change?
“No problem Aamod, yes we have received a lot of feedback in the last week from both camps. Investors (big buyer groups) who want to invest in Spectre but fear changing regulations meaning that major exchanges like Kraken/poloniex wont be able to list our dividend token. So they want a utility token instead. We are creating it for them. For those investors who are more yield hungry, our dividend token will work out for them. This change has been approved by legal yesterday and we are updating all of our materials today/tomorrow.”
Question: Dividend means it’s considered a security and will be under SEC rules for listing do you the necessary approvals?
“Our Utility token and the company that issues that will fall subject to those rules and will be accepted by major U.S exchanges yes. The dividend token will not be listed there but offshore. (on smaller p2p exchanges and our onsite exchange)”
Question: Will the cap you trying to raise remain the same? “yes we do not need more than $30m to disrupt.
Question: I guess spectre will be the first to launch two tokens in one ico?
Augur and Steem.it have done more than 1 token per ICO please check.”]
[SPEC is the utility token? If I purchase some SPEC during ICO I will receive utility tokens only or both utility and dividend tokens in equal quantity?
You get to pick one or the other at the point of sale by sending to one contract or the other correct.]
[So how does this different from a normal crypto exchange like bittrex or cryptopia. You say it is decentralized, owned by the investors not a single company. I get that part. But I’ve never had to use a broker on any crypto exchange. I don’t see how you are broker less and they are not. Could you clarify?]
[There are two different tokens: SPEC-D which delivers monthly dividends and SPEC-U which you can use for trading. In ICO you can buy which token you want.]
[oral hazard finds its way into many industries. Where all human functions can be replaced by computerized smart contracts and all verified on a global distributed ledger, it should be done. Not just in finance and trading but everywhere. DRAIN THE SWAMP. Financial fraud in trading destroys savings and livelihoods and even claims people’s lives. Remove ALL brokers from financial trading and bring back transparency using the blockchain. That is what we do.]
[These greedy and shameless burs must be rooted out! They have had too much time and possibilities to mushroom. Spectre will be the first step in right direction.]
[I am amazed with this project.
If binary options traders find out for this they will jump here to trade ASAP because there are so many binary options scam platforms and I don’t need to mention that they all want your identity before you can withdraw your money plus their brokers are the biggest crocks who just wants you to deposit more and more money so they can get commissions and then they also give you some bonuses but after that you find out that you can’t withdraw your money because of those bonuses.
This platform will be solution for big problems in that industry , so many of people are getting scammed every day by those brokers, there are maybe few legit and tons of scammy ones.
Many people from crypto world maybe doesn’t know much about binary options, but I was there and got burnt (not much luckily) because they are very aggressive with promotions and they got me once xD
I just hope that Spectre will reach thousands of those traders who are getting robbed by shitty trading platforms and brokers. This is a real gem for binary option traders, so fingers crossed for Spectre , you just need to reach out those traders and when they understand what you have here they will never go back to any other binary options platform.]
[I have investes in two other ICO’s relating to Binary Options. And I have regretted this very much. These binary ICO’s are popping up every day. Newest I think binary.com
So after investing I looked (to late) into this business and the potential.
You haven’t read our whitepaper so if possible, try and stop ranting and carefully read our responses. Binary.com is a centralised Binary broker raising money to continue their existing model and tokenise end of year profits to dividends. Our’s removes the broker completely out of the equation and replaces them with a decentralised, autonomous liquidity pool (DALP) and P2P model. This allows traders to trade a range of digital options, smart CFDs and traditional a-book trading. Not sure what makes you believe we are a binary broker – there are no deposits on our platform and no broker present. We don’t offer binary options. The nature of our contracts covers binary outcomes as well, however these are Smart Options and Smart CFDs (ULC) and other contract types. Everything is governed by smart contracts which is the big difference which you clearly have missed.
THIS SPECTRE PLATFORM WILL NEVER WORK !! (of course they do not care, only if the ICO works)
It already works. The pool has grown, traders love it. Defamatory statements that are misleading will result in you being tracked down and sued for defamation. We are happy to escalate this.
1. They say they will apply for a EU license The 1st of January MIFID II will get in effect, meaning 95% of all EU countries will ban Binary Options. So this license is worthless. It can only be used in the EU. US, Canada, Brasil and many other countries and continents have already stated that offering Binary options is illegal. Binary Options are dead !>> clearly no real research was done or ignored
We have actually met with regulators including CySEC. Clearly your understanding of MIFID 2 is lacking as MIFID 2 is not actually even published. MIFID 2 doesn’t ban binary options. There is no information on that. Binary Options are not allowed to be marketed in select regions like Canada or Israel. However, as you can see digital options are big in the U.S as traded under CFTC regulated NADEX who has no plans to ban them. Binary.com which operates under a gaming license in Malta is actually one of the market leaders and will they be shut down by MIFID 2? Absolutely not. Is IQ Option being shut down by CySEC? They are one of the biggest binary players in Europe and operating well within the law. Again, we offer Smart Options (both all or nothing and digital options however our contracts are governed by smart contracts on the Ethereum blockchain, so there is no opportunity for financial fraud) and CFDs and traditional A-Book trading. You have clearly misunderstood what Spectre.ai does.
2. Financial statement is total guess work (or just pumped up for this ICO)
All other Binary ICO companies have set out income and cost of running a binary platform.
Running such a platform cost a lot of money (especially marketing) and this all going to be paid for with a 2% margin , get real !
Actually our 2% model on SOs and 2-20% of spread on CFDs works like a charm. It more than covers our cost base (we don’t have account managers like you do at the broker you work for) so our human-asset intensity is far lower. Also don’t forget we hold d tokens that participate in volumes not only on the normal divvy but end of year special divvy as well. That flows through as operating income. We’re a tech company, not a financial broker. Ergo, our cost base mirrors the former, not latter. Login to our platform and you can see the total dividends paid out, growth in the liquidity pool since the alpha went live around 1.5 months is over 5k ethers, which validates all of our forecasts. Our win rate assumptions included. We have the data, not sure what you’re operating on.
They state a client value of 2500, this is absurd. Not even the largest Forex brokers have such a value. Traders putting 8 trades every day ?? They do not go on holliday or take a break or stop trading…?
>> this team has no experience and is making up numbers
Again, as you haven’t read our white paper or gone into our detailed Forecasts model, you are not in a position to speak with any real authority. Nowhere is the LTV stated as $2,500. It is at $800-900 (page 14 Whitepaper), go to our Forecasts model as well and look at cell B72. With regards to holidays and breaks, yes actually we do factor that in, look at cell number B71. It assumes 110 days of trading (which is based on actual FX and DO data). So everything you have categorically said is false and misleading. Now yes, if you divide Gross Revs by the number of traders you get a net-volume per trader of around $2.4k (aka gross-ltv) however the LTV to us and token holders (net-ltv) is far lower owing to the mechanics of the DALP. Additionally, the LTV for FX traders is far higher than BO traders and our forecasts include a blend of both types of traders not ‘depleted binary option traders’. Many European FX brokerages have client LTVs of EUR 3,000 +. Some are at EUR 1,800 but the average is way higher. Most importantly, our data and assumptions on both net-LTVs and gross-LTVs are coming from one of the market leaders in Europe in binaries (volumes, win-rates, everything) so we have actual data verification behind our assumptions.
3. NO CONFLICTOF INTEREST ??
Spectre is no broker, but it sure as hell is a counter party of their traders! Traders loose and the company wins.
If clients win, this Holy Grale (the liquidity pool) is going to get empty and this means no income for the company (or token holders) , so what is keeping them from rigging the platform ?
Based on this question it is clear that you don’t understand how the Ethereum block chain works, nor how immutable smart contracts interface with multi-sig wallets. We are not a counterparty to anything. Trader trade p2p or against the DALP. The Ethereum blockchain guarantees orcalised pricing so truer and fairer entries and only smart contracts control fund flows (not humans) after trade outcomes (wins, losses, close TP/SLs). It is theoretically impossible for us to extract funds from the liquidity pool (DALP). The only way spectre.ai’s wallet and d token holder wallets get paid are through volumes (not just losses; we are agnostic whether the client wins or loses). Again, loosely glancing over our whitepaper but not actually understanding what we do is going to result in false conclusions.
They say all brokers are scammers (which is true). But where do they get this winrate of 52% (needed for them to make a profit). This company has no experience in running a binary company, so these numbers come from other brokers (correct: scam brokers) And why is the win rate so low, because if the broker does not scam, the winrate will be much higher!
The win rate is actually 49.8% on binary options and we have this from one of the market leaders in Europe with trade data totalling over thousands trades and thousands of customers (sign an NDA with us and we can release that information in confidence, no problem). We build in a higher win-rate on our platform (52%) because our trading platform actually has good risk management features and emotion control algorithms that ensure clients don’t destroy their account within weeks of depositing. Our current win-rate on the spectre.ai dapp which has seen millions in volume go through it already is tracking close to 52-54%.
4. Make a choice , token holders or traders !
Spectre is promoting the platform to traders and pretending that they will offer all the tools to be a successful trader. This is great ! For the traders, but not for the shareholders (clients need to loose to make money) On the other side they promote ICO investors that they are going to offer a profitable trading platform, in which clients will loose on average 2500€ ..
Again, as you haven’t read our white paper or gone into our detailed Forecasts model, you are not in a position to speak with any real authority. Nowhere is the LTV stated as $2,500. It is at $800-900 (page 14 Whitepaper), go to our Forecasts model as well and look at cell B72. With regards to holidays and breaks, yes actually we do factor that in, look at cell number B71. It assumes 110 days of trading (which is based on actual FX and DO data). So everything you have categorically said is false and misleading. Now yes, if you divide Gross Revs by the number of traders you get a net-volume per trader of around $2.4k (aka gross-ltv) however the LTV to us and token holders (net-ltv) is far lower owing to the mechanics of the DALP. Additionally, the LTV for FX traders is far higher than BO traders and our forecasts include a blend of both types of traders not ‘depleted binary option traders’. Many European FX brokerages have client LTVs of EUR 3,000 +. Some are at EUR 1,800 but the average is way higher. Most importantly, our data and assumptions on both net-LTVs and gross-LTVs are coming from one of the market leaders in Europe in binaries (volumes, win-rates, everything) so we have actual data verification behind our assumptions.
Whether you like it or not, take a look at Oanda’s latest audited reports, 65-70% of traders even in a safe a-book environment lose money. It’s that simple. Of course the traders that are good and deserve to win should get paid and that’s exactly what we create a true and fair trading environment.
Also with regards to trading profits as a percentage of total Spectre.ai and token holder revenues, you have completely misunderstood how the Dapp store works and what adjacent fin-tech sectors/areas the DALP will connect to thus diversifying revenue streams.
So What is it ?What is your goal, make us rich or make traders rich !
To create the fairest and most transparent trading environment. Our technology means no deposits required, no brokers required, all prices independently verified. Those who win get paid, shareholders and Spectre.ai get paid on volumes (not just losses but both wins and losses) and Dapp store growth. Speaking in exclamation marks and screaming is not going to change our mission.
the only way both parties can profit if you are a REAL BROKER. A real broker earns on commissions, which means the more positions a traders opens the more commission you earn as a company and now you want the trader to win, as you will want him to place more trades Wink
Great company to set out an ICO and not saying it is a scam, but they have no idea what they are doing and have no experience. (look at the team) and this platform will go bust on traders winning (thats what you want, right? )
This is what a real broker does: https://www.timesofisrael.com/fleeced-by-israeli-binary-options-firm-canadian-man-commits-suicide/
People like you belong behind bars guising as customers when actually you are a broker yourself. Had you made that clear earlier, it would make a lot more sense that you had a dog in the fight. We mean this in every professional sense; shame on you for being a broker and part of the problem and trying to attack a technology that actually creates a fair and transparent trading environment for traders.]
