Multi-chain, community-oriented launchpad Starter this week announced it will host the launch of the IDO for NASDEX, an independently owned and operated decentralized exchange that allows users to trade tokenized stocks on the blockchain through a minting and trading mechanism.
NASDEX, which is designed to serve as a bridge between the crypto and the equity world, seeks to mitigate the limitations of traditional equity exchanges like geographical and portfolio management and investors only being able to buy stocks but unable to sell.
The Asia-market focused DEX aims to remove barriers such as geographical boundaries, cumbersome KYC procedures and allow traders and investors to sell tokenized stocks, trade 24/7 and buy fractional shares of different stocks. NASDEX will also compensate traders for their gas fees by rewarding users through liquidity rewards and minting.
Initially, NASDEX will target tokenized Asian equities trading for Asian investors, having a market cap near $30 trillion. To encourage user engagement, the community and NASDEX token holders will share in the platform revenue of NASDEX, so holders will benefit from growth in revenue. The NASDEX token will also confer governance rights to community members to decide whether to add additional markets, stocks or features. 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.
“Cryptocurrencies, as an asset class, are growing rapidly but lack investment options offered by traditional institutions with equities and bonds,” said Lionel Iruk, special counsel at Starter. “As a trade-off, financial institutions are lacking the technology that is pushing forward DeFi and blockchain. NASDEX can bridge and diversify letting users have both of best worlds as they continue on their investment journey.”
“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. “Innovations in DeFi and blockchain have the ability to add brand new features onto traditional asset classes. NASDEX’s focus to bridge the crypto world and the Asian equity world will create a much needed product for this large and untapped market.”
The DEX will allow users to trade, invest and manage both user’s equity and crypto positions across a single platform by simply connecting their wallets. The rebalancing between crypto and equity portfolios will be simplified on NASDEX, officials said. Tokenization of stocks will be done through the industry standard debt collateralization method to allow security and flexibility to users, whether one decides to mint or trade, giving the community the power to create as many tokenized stocks as they wish.
