Upcoming public QRX token sale makes us feel that it is crucial to sum up all the info about it in one place. The story is long, but definitely worth reading ;)

Qurrex is the first hybrid cryptocurrency exchange that combines three trading systems:

• Professional centralized cryptocurrency exchange;

• Unique decentralized cryptocurrency exchange for liquidity providers, consisting of thousands of mini-exchanges;

• New generation trading terminal.

Team of developers who have successfully created top exchange systems, declares the project mission as follows:

- integration of Qurrex platform into the existing traditional market exchange trading ecosystem, in order to provide access to cryptocurrency markets for over 200 million users and 20 thousand professional players;

- creation of the World’s first in-demand decentralized exchange with turnover exceeding 10 billion USD a day;

- solving of all modern days crypto trading “teething troubles” and provision of unique social, automation, and robotic trading tools for the retail market.

Essential part of Qurrex ecosystem — own token QRX — has a series of functions which ensure high market price and high competitive demand for a long time and from a wide range of buyers. Here is the QRX token economy design considered in various examples.

QRX VALUE FOR THE PROFESSIONAL CENTRALIZED EXCHANGE

Discount or cash-back. 20% of the exchange income from trade commission fees will be distributed among the whole pool of QRX tokens as a discount/cash-back. This possibility will be useful for the active QRX exchange users who wish to cut their exchange-related expenses. This is an example of the distribution.

Say, the commission income of the exchange is $100, $20 of which will be evenly distributed among 100 tokens. That means that a holder of one token is entitled to a 20 cents discount/cash-back. But what is the full-scale direct and relative economic effect for the ecosystem players?

Let’s take a deeper look.

Exchange. 20% of the exchange commission fees is approximately 50% of net profit, which is a significant part of the company’s business. According to Bloomberg, exchange commission of the World’s top-10 cryptocurrency exchanges ranges from $400 thousand to $3 million a day. Which is approximately $150 million to $1 billion a year respectively.

Project’s hard cap is $55 million (70 million QRX). Taking into account the commission fee and the estimated assets turnover, one can assume the potential token pay-back period within 5–12 months range. But in fact this period is slightly shorter.

We must take into account here that the estimation has been done based on the current cryptomarket parameters, while Qurrex targets the professional market, which capabilities and volume are much bigger compared to those of non-professional.

Retail market. Currently there are around 10 million users of crypto economy. Daily turnover equivalent to one user varies in a range of $1000-$2000, which equals to $350-$750 thousand a year. A user’s exchange commission fees expenses make $600-$1200 a year. In order to allow an average user to get an approximate expenses value refund of $1200 a year they must deposit less than 600–1200 QRX tokens (once) at the Qurrex exchange. Considering the market growth, an additional tokens depositing may be required later in the amount less than 300 QRX.

On the one hand, it is not so much. On the other — at the emission limit of 70 million QRX tokens the total amount of users with 1200 QRX tokens stack cannot exceed 58 333. For the 10 million current cryptocurrency exchange users it constitutes only 0.6%, or every 180th person, for 200 million users of conventional markets it is less than 0.03%, or every 3600th person.

Using this compilation we can come up with clear understanding of demand and competition of a QRX token at the retail market.

Professional market. It is highly probable that rather than an average user, the main beneficiary of the discount/cash-back will be the institutional players in the form of FX and traditional brokers, trading companies, liquidity providers, banks and other companies, whose trade turnover volume is significantly high.

Let’s make an example. An average broker with 10,000 users will pay $6–12 million in exchange commission fees every year. Possession of 1 million QRX tokens will allow to save $1–4 million every year, that is practically comparable to 30–100% of net profit in this business. For the institutional players the crypto market will long be one of the segments with highest margin, so possession of tools which provide long-term savings at the market will become a strategic competitive advantage.

At the emission limit of 70 million QRX tokens, the total amount of users with 1 million QRX tokens stack cannot exceed 70. For 20,000 traditional market users this is merely 0.35% or every 250th person.

Financial lease. Qurrex exchange specialized trading section features provide the possibility to operate the QRX token derivative financial lease with a floating and fixed rate in order to allow the QRX token owner to make an interest rate profit nominated in highly liquid currencies (USD, EUR, BTC, ETH, QRX), while the lessee of the QRX tokens can get a discount/cash-back for the trade commission fee for the period of time.

So, the owners of QRX tokens who do not actively trade at the platform can still benefit from them. They will get passive income thanks to secured transfer of tokens for temporary use by a third party. In accordance with our estimates, the lease cost will be no less than 50% of the redistributed discount/cash-back for the lease period.

Besides the application listed above, QRX token will be used:

• As exchange asset — QRX quotes will be listed for the key crypto and fiat pairs. Therefore the token will have the attribute of market goods with high liquidity, with a market price that is subject to a change due to exchange rate gains. This function will primarily be demanded by exchange speculators (professional traders), hedge funds, investment banks, trading companies, etc. who profit off of expectations of the economic agents (volatility).

• QRX token will become a payment instrument for any services of Qurrex exchange at the market (current exchange rate) price, and in this case we expect demand growth from tokens emitters (ICO) and HFT traders (co-location zone);

Fundamental factors that influence the market price of the token are the economic results of Qurrex exchange (trading volume and trading exchange fee) and market agents’ expectations of the parameter fluctuations in future. Project team is sure that Qurrex will be among the top-3 cryptocurrency exchanges, and this is only a matter of time, even relatively soon.

QRX VALUE FOR DECENTRALIZED EXCHANGE

The concept of decentralized Qurrex exchange suggested by the team is aimed at finding solution for the current key issue of the decentralized exchanges — absence of trading volumes.

The solution is to create the first decentralized cryptocurrency exchange with turnover exceeding $10 billion per day. Currently the mutual turnover of all decentralized exchanges is less than $10 billion per day, which is less than 0.1% of daily crypto market turnover. If we consider the highly liquid pair (e.g. ETH/BTC), it will be even several times less than that.

Resolving this, rather than consisting of only technological aspects (atomic transfers or their speed), means to address the economical aspect. The issue is that currently there are no decentralized exchanges that would economically encourage the liquidity providers to participate in the organization of trading by means of providing the liquidity. Therefore, the core of the decentralized Qurrex exchange is the liquidity node, which by its functionality is a truncated type of exchange capable of drafting a request register and drawing up the balance.

The owner of a liquidity node can receive income by means of:

in-chain exchange commission fees of the decentralized exchange for the provision of own liquidity and management of the client’s passive liquidity.

off-chain commission fees for provision of leverages, repo, access to the system and other services.

Decentralized Qurrex system is designed to allow for thousands of liquidity nodes as part of its structure. It is expected that liquidity providers will be constantly earning at least several hundred thousand dollars up to several dozens of million dollars a year by means of providing liquidity for niche tools paired with high liquidity currencies.

Taking the average broker above with the 10,000 users we can estimate that they would earn $ 6-$12 million dollars a year from their clients in the decentralized environment of hybrid crypto exchange.

Liquidity providers — who are they?

At the traditional markets they are banks, specialized financial middle-men, prime brokers, market makers. In the crypto economy it is possible to add major miners, mining pools, and owners of significant stacks of niche cryptocurrencies to that list.

The rights for creating of a liquidity node can be acquired only in return to QRX tokens by the formula:

The value of QRX token at the decentralized Qurrex exchange resides in the fact that in return to possession of a liquidity node it is possible to get active and passive kinds of income. Guaranteed demand will be provided from a wide range of players, such as institutional participants, major miners, mining pools, owners of significant stacks of niche cryptocurrencies (altcoins). Only several thousands of participants can own liquidity nodes.

QRX and its role for the trading terminal

Trading terminal or middleware Qurrex will provide a series of trading services for b2c. For example, such as algorithmic trading, autofollow, trade signals. Socialized traders — owners of small QRX amounts — can get access to these services at a discount or, in some cases, free of charge. Also, the owners of medium and major QRX stacks will have discounted access to b2b information services of the exchange, such as market data.

In is impossible to buy QRX tokens at retail prior to private pre-sale completion. Currently the team of hybrid crypto currency exchange is interacting with and processing the orders of institutional investors only.

According to plans upon completion of pre-ICO in May-June, 2018 a small amount of tokens will be provided to public sale via a white-list with a depositary system. The depositary system has already been launched.

The cost of 1 QRX is equalized to US$1 or cryptocurrency equivalent. You can buy tokens using Ethereum, Bitcoins, or Litecoins. Total amount to be sold during ICO is 55 million tokens out of 70 million emitted, which is 78.6% of the total amount of emitted coins.

More info on Qurrex and what we stand for:

Whitepaper

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