Sparkswap to Raise $3.5M to Launch Lightning DEX

Seed round was led by Initialized Capital, with Pantera Capital and Foundation Capital
08 April 2019   394

The San Francisco-based decentralized exchange Sparkswap officially launched on Monday, April 8, becoming the first cryptocurrency platform in North America to fully integrate the Lightning Network protocol and cross-platform atomic swaps technology.

At the same time, Sparkswap closed the initial round of financing in the amount of $ 3.5 million, led by venture company Pantera Capital. Initialized Capital and Foundation Capital were also invested in the stock exchange.

As they say in the exchange's blog, at the moment Sparkswap is working in beta mode, supporting cross-platform atomic swaps between BTC and LTC. In the first months after the start of operation, the exchange plans to maintain a trading limit of $ 2500 per day, but later on, along with the addition of new trading pairs, this bar will be raised.

Sparkswap is a new way to trade cryptocurrency without giving up control of your assets and exposing them to theft and loss. But unlike other non-custodial exchanges, Sparkswap lets you trade across blockchains (including Bitcoin) and trades settle in a few seconds — comparable with centralized and custodial cryptocurrency exchanges.
 

Trey Griffith

Sparkswap Team

The Sparkswap team also notes that native Bitcoin support will allow the exchange to work with most of the most liquid trading pairs.

Lightning Network's implementation, called LND, used by the Sparkswap team, is run by Lightning Labs engineer Alex Bosworth. In the commentary of CoinDesk, he, however, acknowledged that for the time being he cannot be completely sure that this young technology can provide stably faster processes than that of centralized exchanges.

If you actually look at the script, it says that it could happen instantly but it could also take longer. You still have an issue of timing with the cross-chain swaps. This is a problem for making this into a service that works with a lot of money.
 

Alex Bosworth

Engineer, Lightning Labs and LND implementator

He also notes that the situation is complicated by the fact that there is a certain cultural gap between institutional traders who Sparkswap wants to be focused on and the current possibilities of the Lightning Network. According to Bosworth, many such traders exchange cryptocurrencies for millions of dollars at a time, rather than a modest few thousand, while they work with predetermined partners.

Just from a business perspective, I know that a lot of trading that happens on exchanges is actually done through contracts and trust. I actually see the industry going in a more trusted direction.
 

Alex Bosworth

Engineer, Lightning Labs and LND implementator

The Sparkswap team, meanwhile, notes that it has been working on its software for the past 16 months. In the future plans of the exchange, the introduction of new improvements that will help it with scaling processes and providing an even higher level of security, as well as its own API, which allows traders to integrate various tools.

CFTC to Approve LedgerX's Deliverable BTC Futures

At the same time, another platforms such as Bakkt, ErisX and Seed CX still awaiting regulatory approval
26 June 2019   65

Cryptocurrency derivatives provider LedgerX LLC has received a license from the Authorized Derivatives Market (DCM) from the US Commodity Futures Trading Commission (CFTC), which will allow it to launch the country's first bitcoin futures.

Deliveries for deliverable futures are made in the underlying asset, not in fiat funds. Thus, LedgerX outstripped the Bakkt, ErisX and Seed CX platforms, which are still awaiting regulatory approval.

At the same time, LedgerX intends to launch the Omni platform for trading options, swaps, and bitcoin futures for retail investors, since at the moment it does not see enough interest from institutional market participants.

However, it should be added that some experts have already expressed fears that the nature of the license received will not allow LedgerX to provide margin tools to customers, and Bakkt should have such functionality.

Recall about the intentions to obtain the appropriate permission and overtake competitors LedgerX said in April.