BabelX
commented
3 years ago Realized after reading through the whitepaper that this idea was outside of the scope of district0x
Closed BabelX closed 3 years ago
BabelX
commented
3 years ago Realized after reading through the whitepaper that this idea was outside of the scope of district0x
Name:
BabelX
Purpose:
The decentralization of all financial markets
Description:
In the spirit of, and inspired by, the story of Babel wherein our voices were confounded by God, I introduce BabelX – the collaboration of our voices to reshape and decentralize the entire capital market structure.
As noted by the recent ‘disruptions’ in stocks such as GME, BB, et al as well as since the inception of all things crypto, it is clear that the attitude of the average citizen toward traditional capital markets could be said to be increasingly marked by frustration. With capital market behavior as a whole almost exclusively directed and dominated by governments, sovereign funds, banks, and other outsized entities (against whom there is no recourse) and considering that the barrier to entry into most financial instruments are regulated to the point of disenfranchising the citizenry from even having the opportunity to participate in a meaningful way… it is not then surprising that the peasants are revolting.
Time would fail me if I went on to speak of the complexities of current exchange rules, the blatant advantage given to algorithmic trading firms, the illusion of liquidity, the wealth disparity, the disproportionate valuation of nearly any and every financial asset in existence, and the complete absence of actual price discovery. A brief glance at the most recent Commitment of Traders report in the Bitcoin futures market indicates that 89% of the short interest (valued at near 2billion dollars) is controlled by… 33 people. 33 friggen people. Folks, this is wrong. If ever there were an issue for decentralization to solve, this is it. The future of our potential for personal and financial growth depends on it.
Onward.
The proposal therefore is the creation of BabelX: A marketplace where Main Street comes to buy and sell digital financial assets of their preference at whichever price upon which they can agree, to the extent that they can afford to do so. Similar to traditional markets, the most current bid and ask price would have to match in order to facilitate a transaction. Once a transaction completes, the owner would possess said digital asset, the seller would either be short or have closed their position. Exclusive to BabelX would be the opportunity for participants to agree on a price of their choosing (price discovery) irrespective of the current tradable price on a traditional exchange. By way of example, if I agreed with you that TSLA was only worth $3 to purchase, and you agreed to sell it to me at that price, then a contract would open, I would be long and you would be short and the most recent (Babel) price of X-TSLA would reflect as $3 – true price discovery.
There is no barrier to entry, any dollar amount will suffice provided that there is money in your wallet and an opposing buyer or seller to your transaction. Perhaps a high limit to bar ‘whales’ though. No wait times for new ‘accounts’ as your wallet is the passport. No waiting for purchases or sales to ‘clear’ as the blockchain makes clearance immediate. No brokerage fees but for the required network fee to process. No hostile entities trying to usurp fractions of a cent to your detriment as that would be considered hostile to the network. No large money entities manipulating price to conform to whichever narrative they’re pushing because there is no narrative.
In conclusion, this is not an attempt to replace traditional financial markets, it is an effort to displace them; to free the people, to collaborate and discover for ourselves the intrinsic value of any and every financial asset in the absence of control, manipulation, and hostility to our person. It is an opportunity to prosper our wealth amongst each other in the face of those who seek to use us as cannon fodder in amassing their own.
My long-term vision is for BabelX is to represent an alternate market of sorts which, once it becomes mainstream, has the potential to better represent reality than the current financial markets and offer opportunity for the average person to benefit from the positive effects of capitalism; and ultimately to be the determiners of the economy in which we live. There are, after all, several billion of us here on earth, why should our fate and future be controlled by so few?
Before you pay $600/share of TSLA at a margin rate of 60% after waiting for 1 week for money to clear and then watch the price drop precipitously after your purchase… maybe you want to check the price of X-TSLA to see if it holds more value and a better opportunity for stability and growth in an exchange with your peers. Get it?
Ethereum Address:
0xC9B13D83F544189aea5F52E600B4c4a1446D1D3d