The idea that crypto trading is on its road to apocalypse has seen a huge outbreak recently. Indeed, $1,860 in crypto is being stolen from exchanges every minute, and almost 99% of all cryptocurrencies are worth zero or could be zero sooner or later. With so many shady projects and hacker attacks around, is there a safe way to trade cryptocurrency and not to be left with nothing? Japanese Montex Project introduced one just a few weeks ago. They went even further than creating a secure crypto exchange – Montex developed the platform allowing to trade real stocks with cryptocurrency.
What’s wrong with crypto exchanges?
Listing a coin on any virtual currency exchange, especially on one from the TOP-20, already signals that the token has passed the audit performed by the exchange. In fact, it’s true upon the time of listing and not always true later.
Unfortunately, the majority of cryptocurrency exchanges stop monitor progress of the listed projects once the coins are tradable on the exchange. In other words, even in case the project’s performance drops and the token price falls, the exchange platform won’t keep track of it.
When giving an interview to Cointelegraph, famous Nouriel Roubini, who predicted the 2008 financial crisis, stated that “81% of ICOs were a scam, to begin with; 11% of them have died; and of the remaining 8% that is traded on exchanges, the top 10 have lost 95% of their value and could lose another 95%”.
And who become the victims in the end? Traders and investors, who buy the worthless coins and fail to sell it on time.
In the case of hacker attacks on crypto exchanges, it’s again the investors who are the basket case and who suffer the most. 2018 became the record-breaking for thefts from exchanges. In total, over $1.5 billion was stolen, which amounts to $2.7 million in crypto assets stolen every day! And there is no guarantee that the owners will get repaid and compensated for the theft.
Clearly, crypto users are at risk: they can invest in one of 99% scam and groundless projects or lose their assets due to a hacker attack on exchanges.
Still, every event is a lesson to learn from. So, more sophisticated crypto companies emerge in the market with the potential to make crypto trading safe and secure. Montex Project is among them.
Montex brought together the expertise in cybersecurity of Garhi Group and the rigorous management system of Podgorica Broker, listed on the Montenegro Stock Exchange. Together, they develop Montex Project, which intends not only to create the safest cryptocurrency exchange but also allow crypto users to buy startups’ stocks with virtual currency. The team implements its vision through 2 technological solutions – the exchange named Montex Market and Montex Wallet.
Not due diligence, but surveillance
Montext Market puts its focus on users’ security and protection of their interests. That’s why the exchange not only audits the project to get the coin listed but conducts non-stop screening and surveillance after listing is done. The entity will have to submit its financial settlements and report its progress on a quarterly basis. Moreover, Montex may establish a review committee and decide on delisting an entity in case of poor performance and risk to traders.
The world’s first crypto insurance
The conducted audit of a company’s viability does not give a 100% guarantee of user protection. A lot can go wrong, especially in a volatile, legally unstructured, but so lucrative cryptocurrency market. The token price may sharply drop, the project may disappear or be not able to develop as it’s supposed to. Luckily, Montex has traders covered by introducing compulsory deposits for companies and insurance of investors.
Entities are obliged to deposit a certain sum of money to the insurance pool. When investors buy virtual currency, they can purchase insurance by using the Montex own cryptocurrency, MON. In case the purchased token becomes delisted, the deposit made by the company will be distributed to insured investors.
Going beyond cryptocurrency
In a quest to maximize opportunities for investors and companies, Montex has gone further beyond the standard cryptocurrency exchange and buy-sell schemes. They’ve created a platform that allows traders to buy stocks of startup companies with virtual currencies, and vice versa – enables startups to get listed on Montex. Montex Market becomes the gateway not only to crypto trading but to venture capital and traditional investing as well. A user can purchase stocks using two currencies – ETH or MON – and exchange them to another virtual currency or legal currency if needed.
Again, to provide transparency and security Montex introduced due diligence and surveillance system for startups which stocks are traded. Companies are required to disclose financial reports for 3 quarters and upload their business plans.
What about the MON token?
The project’s MON serves as the centerpiece of the whole Montex ecosystem – it’s usable in both Montex Market and Montex Wallet. The coin owners can purchase startups’ stocks and users’ insurance for it, as well as trade MON on crypto exchanges like any other virtual currency.
Moreover, MON is used for transaction settlement with Montex Wallet. The cryptocurrency can be sent and received at much lower fees. Montex Wallet offers a new generation solution for users: it supports multiple standards such as ERC20, ERC223, ERC721, monitors asset value in real time and evaluates the portfolio in various currencies – USD, EUR, CNY, KRW, and JPY.
Montex Project has brought to the table ultimate security in trading and transacting, insurance of risks and an opportunity to engage in traditional investing. Still, the project has many exciting milestones on its roadmap. The team is getting ready to add binary options to Montex Market, issue Montex Card and refine Montex Wallet. A royal flush for a crypto user, isn’t it?
Make sure you join the project’s Telegram chat and keep up with Montex development.
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