A flash back to just around 2 years ago, crypto was looked at with great apprehension – governments were absolutely sure that they had no place in the economy. The banking system did not see cryptocurrency as a significant threat to its operations. As narrow as it was, crypto space kept developing – the necessary infrastructure in terms of crypto exchanges, crypto wallets, ICOs etc just kept happening.
Important to understand that, all that happened with no framework of laws, rules or regulations. Crypto exchanges of all sizes cropped up, some struck it big and the rest were satisfied with the modest amount of trade that they could garner. Interest in crypto and trading activity was limited to a select group of crypto savvy – most participants had a technical background.
We than moved to a phase where the negative aspects of cryptocurrency started cropping up – crypto crime took shape and investors started losing money. There were isolated cases where crypto exchanges were party to such frauds. Existing laws were insufficient to track and apprehend cryptocurrency criminals. Losses, criticism and worries remained confined to a limited group of crypto players.
This was when governments decided that, something had to be done. We heard about crypto trading bans and also, saw banks clearly trying to decipher the scary side of cryptocurrency. Cryptocurrency and the technology behind it was not understood by many. Government authorities and crypto were at crossroads. Crypto exchanges kept expanding their operations, cryptocurrency became more accessible.
The coronavirus pandemic that, swept the globe should have put cryptocurrency away from every mind – there were more pressing issues to be dealt with. Interestingly what followed during the pandemic and subsequent lockdowns, proved beneficial to the crypto industry. With no work and money, citizens looked up to their government for financial assistance. As governments worked tirelessly to assemble the massive financial requirement, efficiently and promptly disbursing the relief posed another challenge. The banking system with its cumbersome procedures and cost heavy operation, proved to be a stumbling block.
Government authorities and independent monetary organizations like the IMF (International Monetary Fund), realized the utility of cryptocurrency. Observing the operation of the private cryptocurrency industry, authorities promoted the concept of CBDC (Central Bank Digital Currency). Without getting into details about CBDC which is a detailed subject, worthy of a complete report – let’s get back to our topic on crypto exchanges.
With a more positive attitude towards cryptocurrency, the authorities had begun the process of streamlining and regulating crypto activity. It is no secret that, the starting point of most crypto trade and transaction events, happens at the crypto exchange. It is quite obvious that, a significant amount of regulation is being aimed at crypto exchanges.
The law now places increasingly higher responsibility on crypto exchanges. Understandably some of them (exchanges), would not be able to adapt to the changing requirements. This explains the spate of closures among small and medium sized exchanges. Crypto players continue to migrate to larger exchanges that inspire confidence. There is surely no reason to rejoice the closure of smaller exchanges but, what happened was inevitable. At the end of the day, it will be fittest that survive.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]