Exmo – Retrieving Paid Interest Through Tokens
What is Exmo?
Some of you might already be familiar with Exmo, as it is an existing crypto exchange. Exmo started in 2014 and has since accumulated 1.200.000 total users and 200.000 daily visitors to the Exmo platform. The total trading volume over 2017 was $3.7 billion. Currently they offer 46 currency pairs, but are soon hoping to reach over 150 pairs. The average number of people that sign up every day is around 10.000. Exmo has rapidly grown over the past 3.5 years, and the team has said to be eager to build on the pace of their previous performance and expand even more. Some of Exmo’s milestones are:
Exmo’s competitors are the leaders of the cryptocurrency exchange market, but Exmo says: “We have a solid plan for our further development, and we know how to become the market leader within the next five years.”
Click below to go to the exchange
Why does a running exchange do an ICO?
Part of their plan is to provide margin trading on their platform, as they currently do not provide this kind of trading. Most large crypto exchanges offer margin trading, thus Exmo feels the need to provide this service as well. Some exchanges that offer margin trading lend traders money directly from their operating accounts. So the reason for this ICO is likely that Exmo does not have an operating account large enough to fulfill their trader’s needs to use margin trading. We suspect the reason for this being their rapid expansion meaning they likely invested a lot of their income to further penetrate the market. Margin trading has the possibility to bring the Exmo platform to a new level. Potentially through offering margin trading will their volume increase. This is because Exmo will likely gain popularity when offering margin trading, but the increase in volume will also come from their current traders getting the ability to make larger trades.
The proceeds from the ICO will be used as follows:
The hard cap is $300.000.000 which would make it one of the largest ICO’s ever, but it is backed by an already working exchange with an existing consumer base. Exmo is going to increase their promotion budget by 300%, to attract new traders, retaining existing traders and to grown and nurture the platform’s reputation.
Why is this ICO interesting for investors?
Exmo token holders will receive 50% of the interest accrued from margin trading monthly. The other 50% will be invested into the development of the platform, and likely to grow the total account that the margin loans come from. This means that this is a token with payout that will reinvest to increase future payouts. The interest rates on margin trading will be between 0.07% per day for cryptocurrencies, resulting in an annual rate of 25.55%, and for fiat currencies the rate will be 0,08% per day resulting in an annual rate of 29.2%. Exmo has provided multiple forecasts to display the earnings and potential of the token.
The basic scenario
The planned scenario
These are very attractive numbers, but of course, as with any ICO, it is not certain that these will be the actual achieved payouts and token values. The actual results can always be higher or lower. At the Crypto Rating Desk we are more than happy with a token that has an annual return of 15% to contribute to our portfolio. The first dividends are expected to be paid out in June this year.
We think Exmo will have a good chance to actually achieve these returns because:
- The ICO is backed by an already functioning platform
- Margin trading will make the platform more attractive for traders
- Exmo has grown very rapidly as an exchange the past 3.5 years, and we believe this might continue for another while
One Exmo token will be sold in ICO for $1.
The Pre-Sale will be held from April 21st till April 23rd. Where investors will receive a 5% bonus amount of tokens. The presale has a hard cap of $5.000.000 = EXO 5.000.000 (including the bonus this will be 5.250.000)
The Crowdsale will be held from April 26th till May 26th. Unfortunately there will be no bonus. The hardcap will be $295.000.000 = EXO 295.000.000.
The total amount of tokens to be issued is EXO 300.250.000.
Minimum investment is EXO 15, which is (one of) the lowest minimal investment(s) we have seen so far. This is likely because you can also contribute to the ICO through the Exmo Exchange, so this way they probably are trying to get as many of their existing customers to invest as possible. We think it is very attractive for users of the exchange to purchase tokens, because it basically gives them the opportunity to get part of their interest fee back!
Otherwise any ERC20 wallet will suffice, and the contributions will be made in Ethereum.
To find out more about Exmo, click the image below