Today, the Hong Kong based cryptocurrency exchange Gatecoin has announced that they are adding new Ethereum based tokens for purchase and trading through their online exchange. Already offering REP tokens from the crowdsale of Augur (REP), Gatecoin will now offer Digix DGD tokens as well as Slock.it DAO IOU’s.
I first learned about Gatecoin when I wrote a piece about them on BTCManager highlighting that they rode the fine line between being highly compliant with regulation standards as well as highly innovative, which is generally rare. Gatecoin was at the very cutting edge of selling Augur’s REP tokens and has remained bullish not only on Ethereum’s ETH cryptocurrency but on DAO issued tokens as well.
Digix got everyone’s attention last month when they had a crowdsale of tokens to raise funds for their gold-backed DAO. The crowdsale wound up being a fire-sale of sorts and over $5 million dollars were raised in a short time. Many people were upset that the crowdsale ended so fast and many other DAO creators took notice of how such a fundraising event could be held.
Enter Gatecoin for creating a marketplace filling the demand for these crowdsale tokens. Gatecoin was a first-mover on offering crytpocurrency exchange traders to trade Augur’s REP tokens and now is offering tokens from Slock.it and Digix.
Currently the Augur REP tokens and Digix DGD tokens can be traded in real time. The Slock.it crowdsale has not finished, so the Slock.it DAO tokens will actually be issued as IOU’s once the crowdsale is complete and details surrounding funding are finalized.
Depending how the adoption of buying, selling and trading tokens goes, Gatecoin could be onto something here. Some DAO’s will need lots of funding to operate successfully and being able to access a market of speculators who wish to have access to a variety of tokens might create a strong channel for businesses and investors to come together.
Currently registered and approved users of Gatecoin can purchase and trade for DGD and REP using Bitcoin, Ether, USD, EUR and HKD and CNY soon as well. Slock.it DAO. 100 Slock.it DAO IOU shares will be issued for the equivalent of 1 Ether. The DAO IOU’s will be converted to actual DAO tokens once the crowdsale is complete.
As of 12pm HKT (GMT+8), April 28, 2016, the Slock.it crowdsale was scheduled to have begun. Users of Gatecoin must undergo a fairly basic KYC style verification process that is standard with most major exchanges that deal with banks.
Gatecoin is currently the 3rd largest volume trader of Ether in the world and their focus has been both on remaining highly aligned with industry compliance standards as well as embracing the ideals of Ethereum.
“We see great potential for an increasing number of ‘blockchain assets’ such as DAO tokens for dapps being built on top of Ethereum, such as Slock.it and DigixDAO, which have tangible, real-world, disruptive potential. We are very proud to collaborate with both organizations as an additional gateway for token trading and hope this brings greater visibility and wider participation in their DAO. In the long run we want to be the reference exchange for dapps, enabling more innovative projects to raise capital, and provide mainstream investors with an alternative asset class offering promising returns and additional utility.” Aurelien Menant, CEO and Co-Founder, Gatecoin.
It will be interesting to see what exchanges follow suit in offering crowdsale access to tokens as well as the ability to trade them in the near term. Hopefully this experiment is a success and we see this as a boost to Ethereum’s overall ecosystem.