Polymath to Test Security Token Exchange at DEX

Polymath managed to “successfully” test using the DEX protocol called Loopring, during which only authorized transactions with ST-20 security tokens took place
28 February 2019   527

The platform of security tokens Polymath, together with the Loopring project, demonstrated the possibilities of regulated exchange of tokenized securities on a decentralized exchange. This is reported by CoinDesk.

According to Polymath, it managed to “successfully” test using the DEX protocol called Loopring, during which only authorized transactions with ST-20 security tokens took place, while unauthorized transactions were not concluded.

The ST-20 standard developed by Polymath is an extended variation of the more general ERC-1400 standard, which allows you to limit transactions in the blockchain. Such tokens can be held and exchanged only if certain criteria are met, Polymath said, adding that during the test the wrapped ETH cryptocurrency was exchanged for the ST-20 standard token called Cammazol.

According to Graeme Moore, vice president of marketing for Polymath, the teams participating in the initiative showed that it is possible to enforce legal requirements when exchanging security tokens, even if it is carried out on a decentralized exchange.

What we are showcasing here is that decentralized exchanges and security token issuers have the ability to maintain compliance through the standardized protocols that Polymath and others have built. And, in fact, security tokens make it easier for issuers to follow regulations, when compared with the legacy capital markets system using paper share certificates.
 

Graeme Moore

Vice president of marketing, Polymath

Describing how it works, Polymath said that every time a trade is attempted, the token calls its transfer manager module and effectively asks, “Can this trade be executed?” The transfer manager then checks a whitelist (controlled by the token issuer) to see if the buyer and the seller are allowed to trade the token. Only if the answer is yes is the trade executed.

Loopring’s focus on user experience with their protocol was a great match for Polymath powered ST20 tokens which support an enhanced feature set on top of ERC20 to allow transfers to be fully validated before execution. 
 

Adam Dossa

Director of technology, Polymath

Polymath is company, dealing with securities tokenizations.

Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   1187

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.
 

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.