Dubai-based cryptocurrency exchange BTSE is exploring a potential token sale in which it seeks to attract $50 million to its coffers. BTSE is looking to break new ground for crypto exchanges with the deal by launching the token sale on the Liquid Network, a side-chain on the Bitcoin blockchain. According to the Blockstream website, the developer of the Liquid Network:
“Liquid is a sidechain-based settlement network for traders and exchanges, enabling faster, more confidential Bitcoin transactions and the issuance of digital assets.”
The minimum investment to participate in the BTSE token sale would be $150,000. If successful, it would be a one-two punch for the Ethereum network, which until now has been the popular platform for exchange token sales and which has suffered a weakened use case in the wake of the ICO bubble bursting.
According to its pitch deck, BTSE wants to sell 50 million tokens priced at $1 each including “tiered discounts and vesting depending on the discount.” The exchange plans to direct the funds toward acquiring more users to bolster revenue, “platform development and liquidity, as well as expansion into lending, OTC and mining markets.” BTSE is targeting March 2020 for its deal.
Source: BTSE Pitch DeckWhile BTSE would be the maiden crypto exchange to launch a token sale on the Liquid Network, it would not be the first exchange to have a native cryptocurrency. It would be following in the footsteps of other crypto exchanges with their own coin, such as Binance, whose native cryptocurrency is BNB Coin. Binance has managed to bolster the use case of BNB through expansion efforts such as launching its own token sale platform, the Binance Launchpad in addition to building a decentralized exchange and launching a U.S.-based trading platform. All of these endeavors have strengthened the use case for BNB, which has led to year-to-date gains of nearly 150%, outpacing even bitcoin in 2019.
Source: TradingView
Crypto Market
The timing of the BTSE token sale is weeks before the main event of 2020, which is the bitcoin halving. Many industry participants are anticipating the halving to be bullish for the bitcoin price, given that it will slash the amount of new BTC coins issued with every completed block. This bullish sentiment has the potential to spill over into the broader cryptocurrency market, as well.
According to Grayscale Investments, the sentiment has already started to shift more positive toward bitcoin. While retail investors have not been flocking to the cryptocurrency markets as was the case during the 2017 bull market, institutional investment is said to be gaining traction. Nonetheless, Grayscale found that 36% of American investors are open to buying bitcoin, which could open the floodgates to millions of new investors in the space. The Grayscale report suggests that investors are looking to further diversify their portfolios away from the traditional 60/40 stocks and bond allocations. Grayscale polled 1,100 U.S. investors.
Another bullish sign was observed by bitcoin mining giant Bitmain. The Beijing-based company has reportedly tweaked its business model with Jihan Wu now calling the shots so that Bitmain shoulders more of the risks for the BTC mining community. A Coindesk report sheds some light on Bitmain’s new strategy, which involves the company inheriting more of the risks tied to the bitcoin price action, cash flow, and energy costs. They’ve also tweaked their payment model, making it more miner-friendly, all of which is a sign that it is bullish about the bitcoin market headed into the 2020 halving event.