Globitex ICO Review – Institutional Grade Bitcoin Exchange

Summary

  • Project name: Globitex (Global Bitcoin Exchange)
  • Token symbol: GBX
  • Website: https://www.globitexico.com/
  • White paper: https://www.globitexico.com/wp.pdf
  • Hard cap: EUR10 million for 65% of total tokens
  • Conversion rate: 1 GBX = EUR0.1
  • Maximum market cap at ICO on a fully diluted basis: EUR15.4 million
  • Bonus structure: 10% for first 5 million GBX, 5% for the next 10 million GBX
  • Presale or white list: Presale over, no whitelist
  • ERC-20 Token: Yes
  • Countries excluded: United States
  • Timeline: Crowdsale begins from February 10, 2018 to March 19, 2018 or when hard cap is reached (Please refer to Globitex’s website for the most up to date information)
  • Token distribution date: Upon token sale conclusion
Video summary (video is 7:12 long):

Project Overview

What does the company/project do?

Globitex is an institutional grade cryptocurrency exchange, aiming to foster the development of Bitcoin as a medium of exchange suitable for facilitating global trade.

They are planning to scale up their current bitcoin exchange to allow for global spot and derivatives exchange capabilities, where Bitcoin is used as the underlying unit of account.

Other financial instruments, including repo, money markets, swaps, futures, and options, will also be included as the product offerings of Globitex.

As Bitcoin liquidity increases, Globitex will then enable listing of commodities futures and options with Bitcoin pairings on an open order book basis.

By scaling Globitex into a global spot and derivatives trading venue, it will allow producers to purchase exchange listed products for Bitcoin. Firms and speculators can hedge their risks in Bitcoin with derivative contracts.

Here is an introductory video of Globitex (video is 0:54 long): 

How advanced is the project?

Globitex Group was founded in 2015. The Bitcoin exchange beta was launched in Q2 2017, allowing trading pairs in Bitcoin, Bitcoin Cash, and the Euro. The company has received over EUR1 million in venture capital funding.

In November 2017, Globitex Holding (Latvia) group company NexPay UAB has been granted an e-money license (EMI) by the Bank of Lithuania to carry out payment services and e-money issuance in the EU.

The team has released a roadmap detailing three stages of business development, with the initial coin offering funding the start of stage 1.

For stage 1, the goal is to scale spot FX, where Bitcoin can be traded vs. major fiat and other cryptocurrencies. This will involve business development efforts for establishing banking relationships with partners around the globe, and a thorough security and business evaluation.

Also included in stage 1 is the implementation of margin trading, where Globitex clients will be able to use borrowed funds for leveraging their trading, and the listing of precious metals spot contracts.

For stage 2, the focus will shift to developing Bitcoin money markets, where the team will aggregate the leading interest rate markets for Bitcoin margin lending. It will be named “BIBOR” (Bitcoin Inter-Broker Offered Rate) and the exchange will offer BIBOR futures trading. In addition, the exchange aims to create crypto-to-fiat and crypto-to-crypto based futures, swaps and options.

In stage 3, the project plans to aggregate various commodities such as energy, grains, metals, livestock, and more into a Bitcoin-priced index. The index will be named Globitex Commodity Index (GCOM) and there will be GCOM futures trading. They are also planning to further develop warehousing infrastructure and expand spot commodities in this stage.

What are the tokens used for and how can token value appreciate?

GBX tokens will primarily be used for the settlement of trades on the Globitex exchange and serving as a commission payment token. All registered clients of the Globitex exchange will be able to redeem GBX tokens as payment for commissions on their trades.

GBX tokens will also function within loyalty programs planned for Globitex clients and contributors, where the contributors will be participating in the company’s overall success.

Initially, the tokens will be subject to a premium of no less than 20%. For example, at the price of 0.10 EUR = 1 GBX, the client using GBX will enjoy a bonus of 0.10*120% = 0.12 EUR per 1 GBX. Over time, depending on company success, the bonus will increase to stimulate utilization of GBX tokens.

Redeemed GBX tokens are intended to be burned, permanently removing them from circulation.

Globitex expects GBX to have a 10-year lifetime, during which tokens can be redeemed and loyalty programs and other success-related benefits enacted.

As GBX tokens are used as a commission payment token, it should become more valuable as the Globitex exchange has more trading volume.

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Team

Globitex has a team of 12. ​​​​The biographies of key team members are listed below:

Jon Matonis, Chairman – Jon previously served as executive director and a founding board member for the Bitcoin Foundation, held the role of managing director for the Lydia Group, and worked as the CEO/board director of Network Inference. Jon holds a BA in Economics from George Washington University, and his early work on digital cash systems has been published by Dow Jones, the London School of Economics, and the European Central Bank.

Liza Aizupiete, Managing Director – Before Globitex, Liza had various executive roles in asset management with MTG Capital group companies. She was also a portfolio manager, trading commodity spot and derivatives markets globally. She has worked in business development, marketing and client acquisition while managing overseas business operations in Shanghai. Liza has a BA in Philosophy from the Swiss Universite de Geneve.

Arvis Ermins, Director and Head of Compliance – Arvis began his career with Deloitte Latvia as a lawyer, and the Constitutional Court of Latvia as Head of External Communications. He was a founding partner of MTG Group where he served as the head of legal and compliance team. He graduated from the University of Latvia with a Master’s degree in Law.

Maris Kaneps, Director and Head of IT – Maris has implemented automated trading strategies for futures and spot markets since 2008 and in cryptocurrency trading since 2012. He was responsible for the development of automated trading systems at MTG Capital. Maris has a Master’s degree in computer science from Riga Technical University.

The advisory team includes Mark O’Byrne, bullion dealer and gold market analyst, Carlos Blanco, risk analyst and financial modelling expert, Pierre Roberge, IT security expert, Mikko Ohtamaa, technology advisor and cofounder of TokenMarket Ltd, and Ransu Salovaara, a token sale strategist.


Opportunities

  • Cryptocurrency exchanges that provide fiat on-ramp is a lot more difficult to operate than crypto-to-crypto exchanges due to regulation and compliance. Globitex is able to accept fiat deposit, which makes it stand out among most other cryptocurrency exchanges.
  • Globitex is looking to provide much more than just cryptocurrency trading. Products including money markets, repo, futures, swaps, and options are tools that are used heavily by institutional investors. This is another way Globitex can differentiate against the competition.
  • There is a burning mechanism for the token supply, so the token price can appreciate even if the value of the tokens as a whole do not increase.

Concerns

  • As with other tokens issued by exchanges, GBX token will most likely only going to be listed on the Globitex exchange and will not be supported by other exchanges.

Conclusion

Overall, we like both the flipping and long-term potential of this ICO. Our thoughts on buying the tokens for flipping and investing for the long term are as follows:

For flipping

Good. Despite the recent market environment, we believe that the project is solid with a strong team. The low cap makes it much more compelling.

The market currently places a high valuation to exchange token. Even the token of Bibox, the 30th biggest cryptocurrency exchange, have a market cap of $120 million.

For long-term holding

Good. Globitex’s vision is ambitious and the team has a clear pathway to make it stand out among the competition. If the exchange becomes successful, the potential upside is substantial, especially considering the low market valuation to begin with.


For more information about the ICO, please visit the following links:

* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.

This article is contributed by Victor Lai with the help of our intern Kieran O'Day.

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