Crypto securities experiments go on – decentralized assets at a centralized exchange.

We have finished our IPO part 2 at NXT AE, selling around 2,500,000 shares at a price of 2 NXT each. This could deserve a separate post in itself, but this is not the most interesting actually – we continue our experiments with emerging cryptosecurities markets, and list our asset on Poloniex.com, traditional centralized exchange.

You might ask so what’s cool about it? Is this a move in the right direction? Actually yes, this is very interesting and we’ll see more of that type of listings in future. The thing is we have listed a decentralized security at a centralized exchange: https://poloniex.com/exchange/btc_cnmt

How is this possible? Cryptocurrency magic enables this, our Coinomat asset exists on NXT cryptocurrency blockchain, and technically it is not that different from NXT cryptocurrency itself, meaning that you can send it as easily as you can send NXT. So it can be credited to your account at a “normal” cryptocurrency exchange such as Poloniex, and you can trade it using the fast execution speed which centralization provides. Besides, you can trade it directly to Bitcoin.

I believe that this type integration between decentralized blockchains and centralized exchanges is the way to go and will be huge in future. It provides the best of both worlds – stability of decentralization and speed and convenience of centralized architecture. Modern market trading entails milliseconds trades and opening thousands positions per day, so-called HFT (high frequency trading) creates most of the trading volume at major “traditional” exchanges. Probably it’s impossible to realize milliseconds trade in a decentralized way, due to distributed networks innate latency.

And that’s when centralized exchanges are back into cryptostocks game. They can allow you trade crypto as easily as you trade Google stock.

You can hear quite often “decentralize everything” slogans at Bitcoin related forums. But the future seems to lie in the integration of both worlds, not in one world submitting the other.

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