With the last of trust pervading the binary options market due to widespread fraud, Betex will employ blockchain technology to create a decentralized P2P platform where trades are fair and transparent. In this platform, investors will place bets against one another rather than the platform, keeping the platform uninvolved with specific outcomes. Binary options are a unique type of trade, or bet, that involves a yes or no answer regarding whether an asset or security will be above or below a certain value at a specified time in the future.
As detailed in the Betex whitepaper, binary options experienced exponential growth from 2008, when it was first developed, to 2014. Around the time that binary options had peaked, news stories began to circulate about fraud and misconduct among brokers involved in them. Among the problems, as detailed by the SEC of the United States, was that some brokers were refusing to reimburse customers for their winnings. In some extreme cases, brokers would refuse to respond to emails or calls from customers trying to get money that was owed to them. Another widespread concern was identity theft associated with shady brokers: customers would find their personal information stolen after using these services. There were even cases of software being rigged so that customers would lose their bets, such as by arbitrarily giving the opposite side of a trade (the broker) more time until the customer lost. These are just some of the more outrageous examples of brokers taking advantage of this unregulated market.
To turn things around and bring more fairness and transparency to binary options trading, Betex will use blockchain technology, which has the potential to radically transform this niche. On the blockchain, transactions are globally viewable and immutable, preventing dirty tricks and shenanigans that have plagued this form of trading. As a decentralized P2P platform, bettors will challenge one another rather than Betex, thus keeping Betex uninvolved with their outcomes. Additionally, the winnings will be algorithmically distributed, so that winners keep 95 percent of the winnigs and five percent goes to the platform. Of the five percent kept by the platform, this amount will be divided between token holders, brokers, and the platform to continue its development.
The native token of the platform, BETEX, will be required to make trades and will be given as winnings and payments to brokers. BETEX tokens are ERC20 compliant and run on top of the Ethereum blockchain. Ethereum is a secure blockchain with a rapidly growing user base, thus making BETEX tokens compatible with popular Ethereum wallets. BETEX tokens can be traded at exchanges and converted to other cryptocurrencies or fiat currencies. In total, 10,000,000 BETEX tokens will be created.
The Betex crowdsale is ongoing and ends March 31, 2018. As the first binary options platform powered by the blockchain, Betex will be well-positioned to seize a large share of this market. As a platform employing the blockchain, Betex also has the potential to clean up the image of this niche. As always, investors must carefully investigate companies before investing, deciding for themselves what investments are best. Similarly, the trading of binary options carries risk and should not be done without knowledge, discipline, and strategy. For those interested in the first-mover in this niche, Betex is an intriguing prospect.
*I am receiving BETEX for the growth of the community.
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