16 Oct 2020 | News
Finxflo is bringing a highly disrupting cross-chain interoperability to the modern cryptocurrency market. By sitting simultaneously on two blockchains, Finxflo’s native FXF token enables investors to trade previously non-existent token pairs. This way, Finxflo positions itself as a leader in the blockchain 3.0 generation. Besides scalability, one of the most important issues that the crypto and blockchain industry is facing at the moment is cross-chain interoperability. The crypto landscape consists of hundreds of mutually detached ecosystems. All of these networks, although usable, are restricted to functioning inside their own limited universe. While the majority of DeFi protocols are based on Ethereum, there are some notable projects that use other technologies. They are mutually incompatible because of the blockchain’s introverted nature. Simply put, in this stage of crypto development, different blockchains function as separate siloed eco systems not aware of one another.
Finxflo’s first hybrid cross-chain FXF token represents a big part of the solution for traders looking for that cross-chain system capability. Because FXF leans on both, Ethereum and Tron blockchain, now it is possible to trade pairs such as:
Up to now, some of these pairs were impossible to trade since, for example, ETH sits on the Ethereum blockchain while USDJ is a USD-pegged stablecoin produced via smart contracts on the TRON network. FXF, being on both chains, acts as a synergist for such trades by connecting different and separate technologies.
This adds an extra aspect to arbitrage trading. Traders with larger fund pools will surely recognize possibilities coming from, for example, USDT/USDJ price spread as the two fluctuate around the US dollar value. Even more so since, during arbitrage, their funds will not even leave the safety of Finxflo’s regulated custodian partner, Fireblocks, and its military-grade, security system insured up to $150 million. Instead of users transacting with their own crypto to trade, Finxflo is placing its funds with liquidity providers, making it possible for investors to utilize such opportunities.
For everything described, it is highly probable that institutions are going to recognize Finxflo as a top pick for implementing their arbitrage strategies. Especially since, besides the cross-chain capability, Finxflo has API’s for institutions to integrate into their existing software system.
Since FXF is pivotal for using the described cross-chains trading opportunities, there is a great possibility that the demand for the asset is going to grow exponentially as more users onboard the platform. With growing demand comes the price increase. Thus, holding FXF is, in reality, profoundly beneficial in many ways.
Considering their proven track record, the Finxflo development team is highly aware of the direction which the crypto and DeFi industry have to take for wider adoption. Thus, besides Ethereum/Tron cross-chain interoperability, FXF is going to be on a lookout for further enhancements for what already is a rich and disruptive ecosystem. Therefore, there is much more to look forward to when Finxflo is concerned.