BEIJING, Dec. 6, 2018 /PRNewswire/ -- The development of blockchain technology has attracted a great deal of attention in 2018, an explosive yet turbulent year for the blockchain industry. With its ongoing development, the technology has played an important role in finance, healthcare, document notarization, communications, e-commerce, trade and social networking over the past decade, thanks to its incomparable advantages, among them, decentralization, openness, transparency, security, reliability and increased trading efficiency. A variety of blockchain-based digital asset exchanges have rapidly entered the market. However, most of them are fixed-model exchanges, lacking, for the most part, what is really needed. That situation is about to change.
Blockchain-based digital asset exchange SDX will hold its launch ceremony in China on December 15, 2018 and start trading in January 2019. SDX has entered into partnerships with and obtained financial licenses from the governments and oversight authorities in Mauritius, Grenada, the Antigua and Barbuda Caribbean Free Trade Area as well as the Commonwealth of Antigua and Barbuda. The number of participating countries is on track to grow to 16 within the next year. The Asia Pacific Holding Foundation, the issuer of the exchange's token Asia Pacific Holding (APH), will be legally protected in the free trade zones of these countries, where APH will become their fiat currency and the digital asset to be used for settlement of payments, the conducting of trade and the one that will be put into general circulation in the near future.
APH is a digital asset based on Ethereum ERC2.0 technology and will be mapped to the network backbone within one year. APH uses a decentralized, consensus-driven approach to build a trusted trading network for users, merchants and consumers. The Asia Pacific Holding Foundation was established based on APH to promote applications in tourism, real estate, retirement investing, movie production and distribution, agriculture, artificial intelligence, healthcare, technological innovation and e-commerce, among other industries, as the building block for an APH ecosystem, with an aim of creating a robust blockchain exchange with a wide range of practical and real life applications.
The emergence of SDX has solved many problems facing blockchain exchanges today.
According to statistics from Coinmarketcap, digital asset exchanges have been in growth mode since early 2017. Total market capitalization of blockchain assets worldwide now exceeds US$700 billion, with daily turnover surpassing US$60 billion, of which the proportion that are Bitcoin transactions having dropped from 90 percent to 33 percent. Compared with the global foreign exchange market with a daily turnover of more than US$5 trillion, the blockchain asset market still has much room for development. According to available information, there are approximately 20 million owners of blockchain assets worldwide, demonstrating that the user base also has huge growth potential when compared with the more than 1 billion individuals or entities that own stocks.
The rapid development of blockchain exchanges nevertheless gives rise to many issues. The sector lacks a comprehensive service platform. Digital assets have extensive application scenarios and can be used in a wide range of industries. In today's digital asset market, there is no single truly comprehensive digital asset application platform, and this has hobbled the ability to create the liquidity needed for a sustainable development path. There are now more than 1,614 kinds of digital assets. Given the huge potential of the market, there are but a handful of platforms that are capable of implementing digital assets in anything more than a handful of scenarios. A comprehensive digital asset application platform is urgently needed to achieve the needed liquidity and open up the sector to the wide potential that certainly exists in terms of application scenarios.
Secondly, the digital asset exchanges market lacks applications in brick-and-mortar scenarios. Digital assets, whose main selling points are the high levels of security and trust, are the result of a combination of technological innovation and social demand. Their emergence and development are closely related to the deficiencies of the existing monetary system. The blockchain technology used by both statutory and non-statutory digital assets will create a reliable, credible and transparent digital asset system. Having full transparency in terms of digital assets in circulation allows for instant settlements, increased liquidity, lower levels of collateral needed to secure a mortgage and reduced trading risks. However, neither statutory nor non-statutory digital assets can be said to truly be in wide circulation now. This lack of liquidity makes it difficult to connect them to and apply them in brick-and-mortar scenarios.
There is a bubble in the value of digital assets: this is quite evident based on the excess of unrealistic hype around some blockchain application projects, creating market valuations that deviate from the basic value and setting up unreasonable expectations. In addition, some projects have not, in fact, utilized blockchain technology, but have simply obtained valuations that are fully inconsistent with what they are actually doing in terms of blockchain. These projects account for 95 percent of the total. The level of innovation that has been associated with many projects is totally speculative and deviates from the needs of the real economy. Such financial and technological innovations, to put it plainly, make no sense. Only by developing applications that benefit the real economy can the technology demonstrate its value.
Furthermore, high listing costs and long queues to get listed, unfair profit-sharing mechanisms and lack of any real distinction between existing competitors are all issues hobbling the sector. With the various exchanges all converging in terms of the structure and handling of currency transactions, exchanges will end up competing strictly on price and service quality. However, there is still too much of a lack of differentiation in what competitors are offering. It is critical to have a continuous flow of high-quality blockchain venture projects entering the exchanges.
The establishment of SDX solves these issues.
SDX is committed to building a leading global blockchain-based digital asset exchange, creating an open, authoritative, fair and regulated closed-loop trading platform. Supporting a variety of trading models and financial derivatives while deploying innovative futures, options and other derivatives as its core competitive products, the exchange maintains its market leadership by continuously launching new products in line with the development of the blockchain industry. SDX will provide a platform where the world's top financial professionals can participate in in-depth exchanges as well as in international financial transactions.
The greatest advantage of SDX lies in its international legitimacy and powerful application scenarios. SDX has been granted the financial licenses needed to operate in four countries and regions, with the work in progress to increase the number to 16 in the near future. Government endorsement provides strong evidence for the legitimacy of SDX, and the ability of SDX to create practical application scenarios has been a further driver of its success.
Through its partnership with the Asia Pacific Holding Foundation, SDX has launched the JinDuoDuo.com series of financial management products. APH holders can purchase JinDuoDuo products at SDX. JinDuoDuo products are available with 3-month, 6-month and 12-month maturities. The longer the user invests, the higher the interest rate. As an illustration, the interest rates for 3-month, 6-month and 12-month products are 3 percent, 8 percent and 20 percent respectively.
Over the next year, as SDX establishes partnerships with the 16 countries that have expressed their intent to do so, the Asia Pacific Holding Foundation will launch an offline payment business, where APH holders can shop at supermarkets and convenience stores which accept APH payments, with plans to expand the footprint with more payment services including intermediary markets, taxi services and online payment. Users can also use APH directly to exchange foreign currencies for immediate use in the 16 countries. When users need to have access to the local currency in any of the 16 participating countries, they can convert any amount of APH in their account to the amount of local currency needed. They can also convert foreign currencies into APH and then use APH to convert into other types of currencies. SDX will charge a fee to complete the exchange between APH and other currencies.
In addition, SDX will build its own ecological closed loop in e-commerce, agriculture, movie production and distribution as well as in other areas, creating a complete ecosystem for the applications of APH.
The launch ceremony for SDX will take place in China on December 15, 2018 while trading on the exchange will commence in January 2019. The SDX international blockchain trading platform is committed to utilizing the blockchain technology to build a secure digital currency ecosystem which brings together the wisdom of the community. Investors will no longer be directly exposed to blockchain investment risks and will gain access to the asset value-added services they need. Since inception, the project has been steadily advancing. The project has preliminarily completed the test and development of the hardware for an intelligent control system. Upon going live, small-scale application tests will be implemented worldwide. SDX and its backers are confident that the project will be seen and recognized as an innovator in the next round of development across the blockchain sector.