An alternative to launching an IEO on a centralized exchange is an initial offering on a decentralized exchange, or DEX.
All the major exchanges – Binance, Poloniex, Kraken, and so forth – are centralized. They function as black boxes: their owners retain full control over all business processes, as well as over their clients’ funds. Even though decentralized assets are traded on these platforms, the way such exchanges work has nothing to do with the principles of decentralization.
By contrast, DEXes (such as CryptoBridge, IDEX, ForkDelta, etc.) guarantee complete user control over funds and private keys. All transactions are carried out between wallets using smart contracts. A DEX doesn’t store any assets, so there is no risk of a hacker attack or theft. The differences between the two types of exchanges in general and the Scopuly trading interface in particular are illustrated in the table in section 2.2.3.
There have already been successful IEOs held on decentralized exchanges. There is even a new term for such offerings – IDO (Initial DEX Offering). In particular, a project called BeFull conducted its IEO on the South Korean exchange EOSDAQ in April 2019; another project, Saturn Launch, offers a platform for IDO projects built on Ethereum.
Stellar is the most suitable blockchain for issuing new assets, since listing a new token is free and it can be immediately traded on decentralized exchanges. Thus, the main element of an IEO – the initial listing – is built into the system. However, there are no specialized platforms for conducting IDOs of Stellar-based assets. Scopuly will the first solution of this type.
The solution: Scopuly financial platform
Scopuly is a complete financial system that includes several solutions:
1) Cryptocurrency wallet
2) Decentralized trading interface Scopuly Trade (Stellar DEX);
3) Crypto-fiat payment gateway;
4) IEO platform Scopuly Launchpad;
5) Block Explorer;
The work on the main functionality and interfaces of the platform is finished. Some of the features are already available, while others are undergoing final tests. A detailed description of each solution and its advantages is provided below.
