Trading is becoming more democratized, and the possibility to issue security tokens is bringing more asset classes to the public. While risky, this move is also exciting, allowing for price exposure and retail investment with no barriers to entry. This is the main feature offered up by Dimensions Network in its upcoming ICO. We will look more deeply into how exactly Dimensions Network plans to build its platform and differentiate itself from a broadening competition of decentralized exchanges.
The Dimensions Network ICO is one of the first to re-think its fundraising goals. Due to the increasing price of Ethereum, the project has slashed its funding goals from 150,000 to 50,000 ETH.
What is Dimensions Network?
- Dimensions Network
- Dimensions Network White Paper
- Country of origin: Singapore
- Ticker: STC
- ICO Dates: 24 January – 24 February
- Hard Cap: 50,000 ETH
- Funds raised: Unknown
- Industry: Finance/Trading
- Funds accepted: ETH
- My Rating: 3/5
Dimensions Network Social Media
Dimensions Network Overview
Dimensions Network is building a cryptocurrency trading platform, aiming to expand to more numerous assets and instruments, including derivatives. Initially, the platform would start with a few trading pairs and options, and expand to a decentralized exchange. In short, Dimensions Network presents itself as a hybrid trading platform, bridging the world of traditional finance and distributed ledger technologies.
In its various stages, Dimensions Network would offer:
- Regular Trading
- Margin Trading
- Options Trading
- Futures Trading
The platform would also serve as an exchange aggregator, and use the best possible price from other trading venues to discover the best price for assets.
In an unusual feature, the Dimensions Network platform is written in the programming language Erlang, used by exchanges worldwide. According to the Erlang explanation page, the language has powerful features in the world of finance:
“ Erlang is a programming language used to build massively scalable soft real-time systems with requirements on high availability. Some of its uses are in telecoms, banking, e-commerce, computer telephony and instant messaging. Erlang's runtime system has built-in support for concurrency, distribution and fault tolerance.”
The Dimensions Network platform would have a two-tiered structure, with both centralized trading for speed, and decentralized relations with the Ethereum network for additional liquidity and record-keeping.
The Dimensions Network Team
The Dimensions Network team has gathered talent related to mainstream finance, with the aim of building the same infrastructure with the aim of new technology. The founder and CEO, Stephen Mullens, bring in finance, as well as technological experience.
What is more encouraging is that the project's advisors come from the world of trading and exchanges, and the team does not employ too many marketing or PR experts. One of the problems with ICO teams, at least before the product launch, is a bent on aggressive self-promotion. The Dimensions Network team consists of experts aiming to build a working platform, and gradually unroll products and blockchain-based trading.
The team also includes:
- Rin Chwe Me – Head of Operations
- Manu Datta – CTO
- Navneet Kumar – Core Developer
- Glynn Farrow – Blockchain Advisor
About Dimensions Network Token
The tokenization of trading will mean that the STC token will have an important role. The token would be used to levy trading fees, but also to distribute token rewards to holders, based on the earnings from trading fees.
The digital asset of the Dimensions Network would be known as Strike Toke (STC)
Investing in Dimensions Network: The Pros
Dimensions Network is a part of a rising trend for the creation of new trading platforms. For now, digital assets are in their infancy, projects are in a constant flux, and trading is needed to settle on a price and levels of demand.
Large exchanges are starting to become overloaded, and cannot keep up with innovation. In the last bout of expansion, an almost experimental, small-scale exchange, Binance, took just a few months to become a staple in the trading sector. But recently, Binance had to severely limit new account creation.
Therefore, it may be a good idea to consider Dimensions Network or a similar project building an exchange as a potential winner. The community for Dimensions Network is still small, but in the world of cryptocurrencies, a month is a long time. The Telegram chat is just starting, with engagement from community leaders.
The best feature of Dimensions Network is the promised return from trading fees, so holding the token for a while may have its benefits.
The Risk of Dimensions Network
The biggest risk of Dimensions Network is that the project may have too ambitious aims. While the whole package of Dimensions Network looks formidable, the initial product may be a very basic crypto exchange with a few pairs.
And there are innumerable small-scale exchanges, some even offering their form of derivative products.
In the case of Dimensions Network, ICO backers may have to wait for a while before the product materializes, in various stages. In the case of some ICOs, unless an immediate sale is achieved, it may take years for locked-up funds to start giving returns.
It is yet unclear how the Dimensions Network exchange would make use of the token.
The Dimensions Network ICO has a few conditions for potential participants. The KYC procedure is only voluntary, and even awards a 5% token bonus. The ICO is available for backers from Singapore and China. However, it's a red flag that Dimensions Network is closed to US-based investors. The reason for this is potential trouble as the token may be seen as an unregistered security. In the case of US-based investors, it is still possible to buy into the ICO through other channels.
As promised we have reviewed our token sale country restrictions with our legal team, and based on our updated guidance, we can now accept contributions from both Singapore and China.
ICO restrictions will only apply to USA citizens and residents.
— Dimensions Network (@DN_STC) January 10, 2018
However, the offshore registrations is a bit of a red flag for this project.
Final Thoughts on Dimensions Network
Dimensions Network is an ICO coming in at about the right time, when the demand for exchanges is rising. This is one of the main topics discussed on the project's social media. Therefore, My Rating for this project is 3/5, for a solid idea. The rating falls in the middle, because of the risk of competition and the need to wait and see if Dimensions Network succeeds, or becomes one of the second-tier of exchanges that earn a bad reputation.
In early 2018, the biggest challenges for exchanges include an inflow of tokens and potential traders. An exchange can anger customers in many ways, especially if it makes them miss the trend in a coin. Even big exchanges have seen troubles like DDoS attacks, users angered at delays and updates. And there is always the problem of depleting hot wallets and withdrawals.
Decentralized exchanges have proven to work, but they also have their troubles, mostly due to a lack of user-friendly experience. Now, Dimensions Network will arrive in a market where it would have to compete with Binance, Bancor, Liqui, and the likes of EtherDelta, or perhaps even the BitShares exchange.
So Dimensions Network will have to solve many technological and logistical challenges before claiming to be a success. The social media noise was just starting at the beginning of 2018, and Dimensions Network may expect more interest as the ICO dates approach.
Should YOU Invest?
Honestly, most people looking to invest in altcoins, tokens, and ICOs are hoping they discover the next Bitcoin or Ethereum. The chances of that are rare.
So where is your money best invested? My recommendation might surprise you. It's free to join, and won't require that you invest in risky cryptos!