The main net of Band Capital, a decentralized finance network, began on Monday, September 30, and customers will now have access to the startup’s new decentralized application Bit Swing, which offers bitcoin binary trading options.
Band Capital Is Live for Crypto Traders
The company is backed by a venture capital firm known as Sequoia India, and this is interesting in that India has had a very mixed relationship with cryptocurrency. The nation has repeatedly banned activity surrounding crypto, going so far as to block all traditional financial institutions from working with blockchain-based enterprises.
In addition, regulators within the country have repeatedly vouched to issue jail sentences for all those who engage in or use cryptocurrency. India has proven so tough when it comes to digital assets that Facebook’s new cryptocurrency project Libra may never get off the ground there.
So, the idea that a financial firm based within what could be considered one of cryptocurrency’s most restrictive regions says a lot. Perhaps the country has decided to ease up on its regulatory scrutiny, or maybe there is something about Band Capital that doesn’t break the rules presently set by the Indian government.
Either way, the application will allow customers to take both long and short positions on bitcoin prices. At press time, traders can hold these positions for approximately 60 seconds, though the company says it’s looking to expand these periods in the coming weeks. Customers will also be able to trade additional currencies in the future, though specific dates have not been set.
One such asset will be Ethereum, the second-largest cryptocurrency in the world and the primary competitor to bitcoin. To take a position on ether tokens, users will be required to utilize what’s known as Meta Mask, a Web3 wallet built on Ethereum’s Kovan test net.
Prior to its release, Bit Swing ultimately incurred a period of testing amongst enthusiastic customers. Those who took part in the testing were involved in roughly 40,000 transactions, which were recorded to the company’s blockchain ledger. Bit Swing is also partnered with exchanges like Binance and Coin Gecko, to make sure its customers always receive the most up-to-date and accurate price data.
Sometimes, Things Don’t Always Go According to Plan
Many are seeking new ways to trade cryptocurrencies, particularly bitcoin. Last week’s launch of Bakkt, however, shows that these methods can have both positive and negative effects on crypto, with BTC crashing to the low $8,000 range after several weeks of trading above $10,000. Bakkt is considered the culprit by several analysts, who say that the trading platform debuted to less-than-stellar enthusiasm and low-end participation. Less than 75 transactions were recorded on its first day in operation.
Band Capital was founded two years ago and garnered $3 million in seed funding from Sequoia India last February.
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