Cryptocurrencies have one great strength – decentralization and a borderless nature. Globitex has caught onto that feature to create an exchange for traditional asset classes such as commodities, based on Bitcoin and cryptocurrency means of payment.
Table of Contents
What is Globitex?
Globitex aims to connect some of the most active arenas of the real economy to Bitcoin. So far, Bitcoin has only had connections with the finance sector, but Globitex aims to deliver a price-setting mechanism based on other markets and goods, chiefly commodities. The project has the ambitious aim to give Bitcoin a value in real-world dimensions, and thus avoid the chief criticism, that the leading cryptocurrency is a financial bubble.
- Globitex White Paper
- Country of origin: Gibraltar
- Ticker: GBX
- ICO Dates: from 10 February 2018
- Hard Cap: 10 million EUR
- Funds raised: Unknown
- Industry: Finance and Trading
- Funds accepted: Ethereum, Bitcoin, Bitcoin Cash
- My Rating: 3/5
Globitex Social Media
The Globitex ICO promises to be big, or at least to create noise, which may continue for weeks. Currently, the project offers special pre-ICO terms, with great discounts. Globitex may turn out to be one of the prominent ICOs for 2017.
Let's kick off 2018 with a bang!! For 24 hours we'll be running the #Globitex New Year's Special!! 🎆🎉 Get 50% off the minimum $GBX contribution amount when you participate in the token pre-sale on Jan. 1. Visit https://t.co/P90OLSDicA to contribute!! #HappyNewYear pic.twitter.com/RkcxlEeiqh
— Globitex (@globitex_) December 29, 2017
The Globitex project has used the liberal policies of Gibraltar, one of the hot European hubs for ICOs. The project is heavy on marketing and promotion, and has picked a interesting niche with big promises.
The Globitex projects would unroll trading gradually, starting with spot FOREX trading, later adding money markets and derivative trading, and only at a later stage add commodity markets. It is unknown how Globitex would operate, and how much the regulations in Gibraltar would allow the existence of a crypto-based marketplace.
The Globitex Team
The Globitex team brings in market experts, and relies more on the end products. This ICO is less of a developer-driven project, using only the basic idea of the blockchain to secure digital assets for trading. But the experience and views come from FOREX and gold trading experts.
The Globitex ICO does not have the structure of grass-roots projects that other cryptocurrencies have, and the organization works more like a business entity. The chairman, Jon Matonis, is also the founding director of Bitcoin Foundation, and has been a Bitcoin enthusiast for years. He is one of the prominent analytical voices in the crypto community, with publications in Forbes Magazine and other specialized crypto news services.
The team also includes experts like Mark O'Byrne, bullion dealer and gold market analyst.
About Globitex Token
Interestingly, Globitex has tried to legalize cryptocurrencies as a means of payment. European law has been flexible about this, so now Globitex has a license from the Bank of Lithuania. The E-Money license allows Globitex to handle payment services within the EU, and is an important mechanism for outreach and liquidity. Using cryptocurrencies still requires a banking mechanism to achieve inflows and outflows of fiat money, and Globitex has set a legal mechanism in place.
The GBX token, as well as Bitcoin, will see the entry of all kinds of participants, expects Jon Matonis, from institutional to retail investors.
The GBX token would work through the Ethereum blockchain. Its main purpose on the platform would be to pay for trading fees, as well as provide incentives and rewards for market makers and liquidity providers.
Investing in Globitex: The Pros
Globitex seems like a well thought-out project with a lot of promise when it comes to finding a real-world application for cryptocurrencies and tokenization.
The token has a clear role in the system. With bonuses and an ICO price at $0.10, the risk may be worth a small investment. Toward the end of 2017, with BTC prices an uncertain proposition, altcoins, and ICOs may offer a better chance at diversification.
Globitex is a suitable ICO to invest in, if you prefer a team of experts to run the project and develop it, instead of a loosely knit decentralized organization. In the world of cryptocurrencies, both approaches have had success stories, as well as failures, but Globitex seems like a good example for a centralized project that also adds value to the blockchain.
The best thing about Globitex is an already well-functioning, though not unique, platform for trading Bitcoin against the Euro.
The Risk of Globitex
Globitex has entered a niche where other ICOs have set out to build their proprietary platforms. For now, it is unknown what manner of investors would be available to give liquidity to the platform. The other risk is that Globitex is not an open-source project, so little is known of the safety of the tokens, any smart contracts or other plans to develop the technology.
The other risk is that the 10 Euro Cent price may see lower levels, especially in the beginning, before the initial hype subsides and the price of the GBX token picks up organic momentum. But in the end, the GBX token may remain just a utility asset, with limited price growth mostly based on the usage of the platform.
Because the project is centralized, the company would reserve 35% of the tokens, a significant holding that may affect future supply and prices.
Final Thoughts on Globitex
The biggest challenge for Globitex would be to bring its small-scale Bitcoin exchange infrastructure to institutional standards. The demand for crypto-related technologies is a great challenge for startups, and building reliable platforms generates more trust in the community. If Globitex succeeds, this would be a point for the importance of Bitcoin as well.
Most probably, however, the ICO would remain in the construction stage for a while, before the promised marketplace attracts users and liquidity.
Recently, Globitex stated its platform may be more stable compared to Coinbase, the most widely used US-based Bitcoin exchange service. But European trading against Bitcoin is still quite behind the volumes against the US dollar, so Globitex has not seen too much demand for now.
Because of the working product and clear outlook, the Globitex ICO receives a 3/5, for being on track to expanding an already established startup, based on expert knowledge and leadership in the usage of blockchain technology. However, they face some real challenges ahead of them, and haven't put out much information other than hype for the ICO.