As millenials go, Tyler is a free spirit. He does cosplay in the day, builds websites at night and handles all his financial transactions via PayPal. “I don’t trust the banks and the financial jargons are confusing”, he says. He’s not alone on this. In a study by Scratch, 71% millennials would rather visit their dentist than listen to the banks. This distrust rose over the years, contributing to a total unbanked population of 2 billion people worldwide.
This does not mean that millennials like Tyler prefer to just hang on to their money. On the contrary, in a survey conducted by Blockchain Capital, 30% of millennials would rather invest $1,000 in cryptocurrency than $1,000 in government bonds or stocks. With the millennials being the largest population in the world, it’s hard to ignore their growing interest in this market.
Blockchain’s anti-establishment roots and decentralized system of accountability and transparency, coupled with the global spread of mobile phones created a population of the digital natives we know as millennials who now have a variety of choices for finance at a click of a button. This same technology has also opened doors for hard-to-reach populations and small businesses to harness digital financial services at lower cost and risk.
The global investment landscape is about to shift towards Blockchain platforms as more new players enter the domain. These new platforms offer crypto tokens which act like virtual currency that represent an asset or utility that resides on their own blockchain. Crypto tokens could represent loyalty points, money or assets, depending on the platform’s offer and purpose. These crypto tokens are often designed to be stable, as opposed to crypto currencies like Bitcoin. If the proposition of these Blockchain platforms are compelling enough, it will capture the attention of the unbanked population and provide improved access to secure transactions that can enable people to take charge of their finances and build a better life.
When the hype on cryptocurrency dies down, crypto tokens will be on the rise to replace money as an everyday token of exchange to facilitate commerce and investment. Crypto tokens that function as currency for investment or banking will soon be highly demanded because Blockchain technology takes care of basic investing concerns like transparency, accountability, and security for all transactions. This is a highly attractive proposition for the millennial market because all trade can happen on their mobile phones in a Blockchain system that allows no room for fraud, hacking or long processing time.
Hollywood would soon have to replace the age-old movie depiction of investment brokers on Wall Street to user-centric stories where users are empowered to make their own investments, in their own time. Cutting edge Blockchain platforms like Level01 are seeing to this change by building a digital eco-system that will enable the general public to enter the highly lucrative $1.2 quadrillion global derivatives market with ease and confidence.
Level01 is the world’s first Brokerless Derivatives Exchange in partnership with Thomson Reuters. The Level01 app interface is as sleek as a gamer’s console and is extremely intuitive for users of all ages and background. With a low initial trading investment cost and user-centric app that empowers all types of investors, anyone can come on board regardless of whether they are new or experienced derivatives investors. An inbuilt trade matching capability makes the investing experience all the better because you are automatically given a selection of trade matches that are fairly priced for your selection and investment style.
Initial users to the Level01 platform ecosystem are primarily individuals, with the potential for businesses or groups to join the platform eventually. True to the nature of Blockchain, Level01 platform works to prevent any individual or group to hoard its native LVX token so that it can remain as a decentralized, and level investing ecosystem with a healthy value creation loop.
When more people participate in the Level01 platform for trading options contract for profit, they add and create value for the collective by improving liquidity. Level01 users create value for each other by becoming counterparties for each other and becoming both issuers of options contracts and also as counterparty matchers. As more people join the platform, the effect is enhanced exponentially creating a virtuous self-enforcing loop.
To encourage continuous trading activities on Level01, users can host trading rooms and tournaments to earn perpetual residual commissions. This clever user-driven mechanism keeps the LVX token active within the network, reinforces its price and reduces the pressure of selling the LVX token for other cryptocurrencies or tokens.
Beyond having just individuals on board, Level01 will allow institutional investors and brokers to trade on the platform. Adding them will increase liquidity and allow all Level01 users to obtain better trade execution and more profitable trades, with better odds. The platform utilizes Thomson Reuter’s data feeds as a trusted source for its AI deep learning algorithms to provide real-time pricing analytics on derivatives contracts; the data is also used to ensure transparent, efficient and accurate settlement of derivative contracts upon maturity. Level01’s partnership with Thomson Reuters will attract institutional traders to come in for their own book balancing. The system also facilitates commercial and institutional trading by providing access to the Level01 platform via APIs. Level01 anticipates other retail brokers will have significant improvements in liquidity, which would enable them to hedge their exposures at lower costs outside of their own platforms. Again, this creates greater liquidity and trading benefits for all.
Does adding institutions and professional brokers to the mix really make the trading environment better? It does. An example of how this would work is BetFair, a peer-to-peer bookmaker in the United Kingdom that acts as a marketplace in its own right to other traditional bookmakers (such as William Hill or Ladbrokes) enabling them to hedge positions.
Value creation is a by-product of trade; two different parties choose to exchange assets of differently perceived value to each own satisfaction. In this case, the speculated price of a market asset could translate to highly rewarding trading profits.
With all the checks in the boxes ticked, the Level01 platform is in a prime position to serve a global market of banked and unbanked populations that demand for lower barriers to entry, financial transparency, accountability and security. Opening doors and extending financial inclusion to a previously untapped market makes trade more lucrative and empowers all types of users with the freedom to build, plan and design their own financial futures.
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