Binary options (also known as digital options) is one of the most popular trading channels out there in the market currently.
How do binary options work?
For starters, a trader can profit by guessing whether the price of an asset (a stock, for example) will rise or fall between a period of time. If the guess is correct, the trader profits and vice versa.
The simple nature of binary options as well as the potential ability to beat the market combined with the addictive nature of trading led to a massive growth every year with nearly $30 billion generated in one year alone.
Just like many trading industries, however, there are many disadvantages of binary options.
It’s well known that many brokerages regularly tamper with price feeds and payout percentages to make profits regardless of the outcome. Some even go as far as robbing clients of their earnings by “failures” that reset their account to zero or even blocking withdrawals.
These problems are occurring everywhere today and have even led to unfortunate events that affect consumers negatively.
All of these problems happen because of a single reason; they happen because brokerages control 100% of the client’s funds as they rest solely with the broker instead of the client.
Spectre removes brokers out of the trading equation entirely, hence introducing a shift to today’s current yet extremely outdated model.
The goal of the platform is to disrupt the digital options and classic retail FX/equities trading industries to empower the client instead of the brokerages.
Spectre (an acronym for Speculative Tokenized Trading Exchange) aims to become the world’s first broker-less, financial trading platform with an embedded and decentralized liquidity pool that acts as a counter-party to all trades.
The platform which is powered by the Ethereum blockchain, allows users to trade on assets like currencies, commodities, and even stocks fairly as Spectre is governed by smart contracts, NOT by a centralized team that controls everything the client has.
What sets this project apart is the team behind the Spectre platform.
The platform is being developed and built by a group of extremely experienced individuals in the industry with an impressive resume of past high-ranked positions at places like J.P Morgan, Goldman Sachs and Deutsche Bank.
The team’s relevant experience and exposure to the current problems of the binary options and forex trading industry will help the Spectre project to grow nicely and meet all of its goals.
With the features of the platform as well as the team’s roadmap, it is safe to say that decentralized trading platforms are the future of the binary options and forex market.
Not only are decentralized applications 100% transparent, they also cut middlemen out and turn an investment channel widely touted as gambling into a legit opportunity to invest and profit.
As mentioned earlier, Spectre’s liquidity pool is initially funded by the platform’s ICO and tokens are distributed to investors of the token sale.
All trades and transactions on the Spectre platform are powered by smart contracts which removes the need for brokers.
How do smart contracts work here?
First, the smart contracts pay out 2% dividends to token holders and 2% to Spectre as a technology fee each time the trader makes a trade. This is completely different than current standards where brokers are paid even when the trader makes a loss.
What this does is to create a transparent trading ground where all parties benefit mutually and nothing is hidden from plain sight; traders can also fairly trade against the market without worries of being screwed over by the brokerage.
The trading process at Spectre is extremely simple.
For a first-time user, all the user has to do is sign up to the platform but they don’t have to deposit anything.
To trade, users have to open a cryptocurrency wallet on the website and send funds to that address where all processes are verified and governed by the Ethereum blockchain which is extremely secure.
Other cryptocurrency wallets like MyEtherWallet for example, can also be connected to the wallet as well. These wallets ensure that funds cannot be accessed or handled by Spectre employees–they can only be accessed by the user themselves.
Unlike other platforms, there are two types of tokens available in Spectre (acquired during the token sale): a dividend token (SPEC-D) and a utility token (SPEC-U)
As mentioned earlier, SPEC-D tokens pay a weekly 2% dividend to its holder, while SPEC-U tokens offer holders higher payouts on the platform, a wider variety of assets to trade inside the Spectre platform as well as participation in the platform’s token buy-back program.
Spectre will deliver a completely different experience to current options available on the market.
Not only is the platform infinitely more transparent than current brokerages, traders for the first time will have complete confidence that their withdrawals and payouts are processed nearly instantly as transactions are determined by smart contracts, not a centralized system.
As a sign of the team’s dedication, the Spectre team forgoes the standard practice of only launching the platform after the ICO. Instead, Spectre already has an alpha version of its platform way before its token sale.
It’s not a completely bare bones alpha version either; it works extremely well and it showcases a wide range of features that current trading platforms do not offer at all!
From all of these developments, it is clear that the focus of the Spectre project is highly targeted to the end user, with future plans to develop trade and risk management tools to help further enhance the user experience in Spectre.
Two types of tokens, a dividend-token and a utility-token will be available during the crowd-sale.
For more information about the two tokens, click here to go to Spectre’s page on the differences between SPEC-D and SPEC-U.
Token name: SPEC-D and SPEC-U
Token base: Ethereum (ERC-20 compliant)
Token supply: 5,000,000 (minimum supply) – 240,000,000 (max supply)
Token sale duration: November 17th, 2017 – December 10th, 2017
Token sale target: $30,000,000 (hard cap)
Token exchange rate: 1 ETH = 2,000 SPEC-D or 2,000 SPEC-U