What is Stox coin?
Stox (STX) is an Ethereum based, open source platform designed for markets where users have the possibility of trading the outcome of events in various categories, including election results, celebrity marriages, sports, the weather and more. The open source platform allows investors to profit from prediction events by leveraging their knowledge. Stox.com targets audiences belonging to the mainstream and is a spin-off of invest.com, a financial company that accommodates over 3 million registered users on its trading platforms and employs over 200 employees across 5 countries, operating online since 2014.
Prediction markets are a specialized form of exchange where any organization or individual can predict the result of any event, trading on its outcome in to form of a stock exchange. Prediction markets are somehow similar to financial markets, where a price is assigned to the future estimated earnings of a stock. However, instead of that, on prediction markets a belief about the probability or the future of an event outcome is assigned a traded price.
On the prediction markets, the probability at any given moment is used by individuals in order to buy and sell outcome shares. For instance, a price of 0.5 indicates a 50 percent chance of occurrence. Additional information or changes in perception make this price to fluctuate. Prediction markets are useful as effective prognostic tools and for understanding the crowd mindset on certain topics. They are used by companies and large institutions in order to predict the outcomes of product development courses or various businesses.
Stox has been created with the goal to become a leading decentralized prediction market available to mainstream audiences. In order to reach this goal Stox plans to maintain a thriving ecosystem of providers looking to create events and earn a fee for operating them, as well as users looking to invest in event outcomes. The new prediction market platform develops the open source technology necessary for running the decentralized network and creates a successful incentives model for both users and providers.
The new prediction market is powered by the STX digital token that is used for all network activity, including the currency for prediction outcomes of events as well as collaterals and fees. As more users and providers will join the ecosystem, the value of STX is expected to grow. By combining blockchain technology with expertise in regulated markets, Stox offers incentives to providers with existing customer bases to drive traffic to the network.
The main Stox exchanges operating at the moment are Liqui, HitBTC, Novaexchange, Cryptopia, and CCEX
STX tokens can be purchased by using the open source tool called MyEtherWallet. The wallet was designed to securely interacting with the Ethereum network. Stox token sales are subject to terms and conditions described on the website www.stox.com.
In order to maintain liquidity, Stox is based on the Bancor protocol. Market markers are those participants in the ecosystem of Stox prediction market who secure the liquidity in order to ensure the created events. This way, based on demands of market makers that are influenced by Bancor reserves, the Stox token’s supply will be maintained elastic. A STX collateral is required from event operators. This collateral proportional to the STX amount placed on all outcomes is locked in a contract for one day past event resolution.
In the Stox ecosystem are participating the following:
• Providers – those who attract participants into events.
• Operators – acting as both event creators and market makers.
Stox Token Details
The Stox Ltd. company generates the initial STX amount available on the platform. Dynamic supply of future Stox will be generated by smart contracts of Bancor made by operators. The Bancor amount available in the network will influence the total capitalization of the STX market. The total STX contact will have a portion of 4 percent represented in Bancor. This means that there can be, for instance, 9,600 STX if there are 400 BNTs. As money changes hands when events happen, investors have access to a relatively volatile token. This situation is considered to be a big plus.
The Stox team is primarily composed of people from the top tier trading website Invest.com. Stox Ltd. is a company based in Gibraltar. Taking into consideration their direct relation to financial technology and their successful previous venture, market analysts are confident in the success of Stox. The team behind this initiative is definitely considered to be competent and able to reach their goal.
Stox is committed to following all required regulations. However, it is still not clear how this activity will be regulated. Being a decentralized application, it is possible separate functions in the system will be provided by different vendors, operating in relative isolation. This approach could make it easier to comply with each jurisdiction or field of activity’s regulations.
Being a flexible exchange rate currency, STX is exposed to general volatility and liquidity risks. In order to avoid that these risks deter users and investors from participating, Stox will rely on Bancor as its token platform. This will minimize the adverse effects of separating the investment currency from the operational currency and will resolve liquidity risks. In the same time, the initial activity volume brought by invest.com will help to mitigate volatility.
In order to appeal to a mainstream, wide audience, the acquisition and utilization of STX by users will be as straightforward as using online game tokens.
Stox has three distinctive characteristics:
• unique business model
• single token economy
• mainstream user facing design
Stox’s roadmap includes five milestones:
• Stox Platform development
• Stox App development
• launch with invest.com customer network
• creation of an ecosystem member SDK
• growing the ecosystem
This roadmap is financed by selling an initial supply of STX tokens.
Stox’ liquidity model is still a bit confusing. The platform is coming on a marketplace that is already thriving. However, Gnosis ICO’s success has created a hype bubble that will keep expanding around Stox. This new project can leverage its clientele, experience, and seniority of the already well-established invest.com. This will drive traffic to their network, taking also advantage of the publicity boost via the popular boxer Floyd Mayweather. The Stox network will also provide a great control to the investors by distributing 50 percent of the coins. All these features may help Stox to become the best in their market.
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