1 min read.Updated: 28 Sep 2021, 12:22 PM ISTLivemint
Nasdex serves as a bridge between the crypto and the equity world and seeks to mitigate limitations of traditional equity exchanges such as geographical and portfolio management and investors only being able to buy stocks but unable to sell
Listen to this article
Community-driven launchpad, Starter, which supports interoperability of initial DEX offerings (IDO), has launched the IDO of Nasdex in India. Nasdex is an Asia-focused decentralized exchange that offers the ability to trade tokenized equities on blockchain via minting and trading mechanism that mimics the off-chain economics of the real-world equity price.
An initial DEX offering or IDO refers to the launching of a cryptocurrency on a decentralized exchange (DEX). According to CoinMarketCap, decentralized exchanges or DEXs are autonomous decentralized applications that allow cryptocurrency buyers or sellers to trade without having to give up control over their funds to any intermediary or custodian.
Nasdex serves as a bridge between the crypto and the equity world and seeks to mitigate limitations of traditional equity exchanges such as geographical and portfolio management and investors only being able to buy stocks but unable to sell.
According to the company, the Asia-market focused DEX aims to remove barriers such as geographical boundaries, know your customer (KYC) procedures and allow traders and investors to sell tokenized stocks, trade 24/7 and buy fractional shares of their favorite stocks.
Moreover, Nasdex will compensate traders for their gas fees by rewarding users through liquidity rewards and minting. Gas fees are payments that users pay for the computing energy, which is required to process and validate transactions on the blockchain.
“Cryptocurrencies are growing rapidly but lack of investment options offered by traditional institutions with equities and bonds," said Lionel Iruk, special counsel at Starter. “NASDEX can bridge and diversify letting users have both of best worlds as they continue on their investment journey."
Initially, Nasdex will target tokenized Asian equities trading for Asian investors, having a market cap near $30 trillion. In addition, Nasdex has the potential to include the global equity markets, having a combined market cap of around $100 trillion. The $NSDX tokens will be listed for $0.025.
“Crypto projects are spreading from the crypto world into the real world with the corresponding expansion of total addressable market (TAM) and investment returns for all involved," said Josh Du, chief investment officer at Nasdex.