EliteX: In-depth Analysis of the First Ever Lisk-focused Exchange (Part 1)
Maybe some of you could consider quite boring the end of the 2018 in crypto space, but the beginning of this year is starting in an unexpected way in Lisk world: Elite, the biggest delegate pool in Lisk, announced few days ago the launch of the first ever Lisk-focused exchange.
We received a lot of exclusive materials about Elite Exchange and we have now the chance to show you a very detailed description of this initiative. As there is too much information, we divided the article in 2 parts: the first one is released today, while the second one will be published tomorrow.
The origin: From the Elite Center to The Exchange
With the inaugural conference in Xiamen (China) on July 7, the delegate group launched the incubator to provide entrepreneurship counseling, community management and advisory services to Lisk-based projects. They already had 2 projects in mind and we guess that the exchange was one of these.
In addition, the Elite Foundation was established in November 2018 in Singapore; on December 27th EliteX Exchange was mentioned for the first time in Lisk.chat and in the following days more details came out.
Elite is now planning to establish a worldwide investment company to further support Lisk, while they are working on a new incubator in Tokyo.
EliteX is invested and incubated by the Elite Foundation. In their own words “it is dedicated to serving Lisk’s ecosystem environment with providing tokens trading and financial solutions for Dapps development on Lisk platform and providing liquidity for Lisk’s ecosystem environment“. EliteX has successfully closed the Seed Round thanks to the investment made by Whales Capital.
EliteX officially entered its testing phase on January 2nd and the exchange is currently running a testnet bug hunt with a prize fund of 1000 LSK (the contest is open until January 25th). Initial trading pairs are expected to be LSK, BTC and ETH. USDT, the famous stablecoin, is also mentioned as a possible transaction pair.
The main business concept behind the project is to offer a wide range of investment products and trading tools to professional investor and also ordinary investor. These services includes OTC transactions, embedded project information tracking and risk warning.
The next target is to open the registration for external tests in April and to launch in July the first version (EliteX 1.0); at the same time the group plans to open the European Operations Office. In 2020 the team expects to release EliteX 1.2, that includes portfolio and investment tools, while at the end of the same year they aim at obtaining a compliance license, probably in Malta.
What are the long-term goals?
The team aims to be in the Top 20 exchange ranking in 2021 and in 2022-2023 to become one of the top 10 exchanges in the world.
The financial plan
The team is estimating that the payroll of the employees will weigh 60% of the total expenditure budget: usually payroll is between 30% and 50% in an average startup and in this case these numbers mean that develop the product is truly their first priority. Renting an office is a sizeable portion of their fixed costs. In this phase (early stage) many experts recommend keeping overall marketing costs to a minimum and here we can assume that the “public relationship expenses” entry includes the marketing activity.
We are at the end of the first part!
So what we will see in the next article? Who is behind this project (the biography of the key members of the team), the shareholders map and more information about their financials.