Ethereum-based decentralized exchange uses IPFS protocol to launch security token platform for the next generation.
To remove bottlenecks associated with traditional investing in IPOs, BaseCore has launched the BaseCore token – a stablecoin backed by the portfolios of high-valued private IT startups to keep volatility at bay.
With blockchain technology at its core, the BaseCore token is designed for micro-investors interested in private IT companies, with the real potential to reach unicorn status. According to BaseCore, investors won’t become shareholders since the potential profit will be made available from the capitalization and growth rates of non-public IT startups.
The token structure has two components, the “core” and “base.” The “core” investment component is characterized by the underlying token price, which won’t depend solely on the price set by BaseCore, but also by the asset costs in the portfolios of IT companies like AirBnb, Palantir, and Zenreach. The established “base” redemption price is independent of cryptocurrency market fluctuations. Designed to be a decentralized security token exchange, at the heart of the BaseCore project lies Excalibur, the platform’s proprietary exchange protocol.
An Ethereum-based exchange platform powered by IPFS protocol
Existing cryptocurrency exchanges are not 100 percent decentralized. In fact, the majority of exchanges are flawed in both security and availability. Platforms like EtherDelta lack UX design elements, which makes them tough to understand and navigate. To combat such problems, BaseCore’s Excalibur exchange combines an adaptive design with intuitive UX concepts, in a single-page application powered by the most modern and secure IPFS protocol for improved product decentralization.
Designed by Protocol Labs, IPFS (interplanetary file system) is a peer-to-peer (P2P) hypermedia protocol that makes the web safer, faster, and more open. The Excalibur Exchange is currently in closed alpha testing, available on the Kovan Test Network.
Following the launch of the exchange, investors will be able to make their own security tokens on the BaseCore platform after they’ve successfully passed AML/KYC procedures. Additional features include, trading ERC20-compliant security tokens, engaging in margin trading, performing crowd sales, investing with fiat money, and creating security token pools.
A stable coin backed by an investment contract
Today’s cryptocurrency market is highly volatile due to a lack of institutional capital and regulatory oversight. Although the industry is an international phenomenon, limited regulation enables market manipulation, triggering hype and speculation. In 2017, most utility tokens have been ruled as securities by the US Securities and Exchange Commission. According to the SEC commissioner, Robert Jackson, the ICO market is “an unregulated securities market.” When it comes to ICOs, many investors still can’t tell the difference between an opportunity and a scam.
With the rising trend of security token offerings (STOs), crypto assets are maturing. Unlike utility tokens issued by ICOs, security tokens are backed by an investment contract, providing profit potential, dividends, and passive income. Crunchbase highlights that by the end of 2018, 23 startups will surpass $1o billion in capitalization. “Unicorn” startups – ruled by IT companies valued at over $1 billion – don’t allow micro-investors to get a share of the big pie. Many are not permitted to acquire shares either because they don’t qualify or because they can’t afford to invest hundreds of thousands of dollars. According to the company, with the BaseCore token, investors are free to invest in the shares of private IT companies, regardless of their budget and easily control their portfolios.
In terms of plans for the future, the team at BaseCore is working on updating Excalibur with new features. The roadmap includes a user-friendly dashboard with detailed information on balance, the ability to use a hash for making private exchanges, and the ability to develop an inner stable coin using fiat deposits. In the future, they also plan to develop a native desktop and mobile app to streamline access.
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