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Interview with Stephen Mullens – CEO Dimensions Network
What challenge is Dimensions Network addressing?
Everyone in the cryptocurrency ecosystem knows about the problems with the existing cryptocurrency exchanges. These include everything from webpage timeouts, flash crashes and the difficulty to get an account. All of these technical issues have been solved in the regular financial markets, and we are initially looking to bring this proven technology and expertise to the cryptocurrency market.
We are building a fully scalable cryptocurrency exchange with the capability to handle the explosive user growth in the ecosystem. Once we have built up our exchange, we will expand it into a decentralized network to give our users ultimate security.
What is the scale of this challenge?
Per the latest information from the Coinbase webpage, they currently have over 10 million users, and they are growing rapidly. We see Coinbase as the typical entry point for new cryptocurrency traders and investors, and as these newcomers get more experience, they will want to experience the Altcoins, and will need to get an exchange account elsewhere.
Can you showcase team members/advisors which have a strong background? What is their connection with this particular project?
All of our team have specific strengths and we are unified in our direction. Take our CTO as an example, he has first-hand experience building exchange systems in the regular markets, and has brought all of this knowledge and experience with him. All of the scaling problems you see in the cryptocurrency exchange ecosystem were solved long ago in the regular markets, and we are applying this knowledge to create a great cryptocurrency exchange platform.
Does Dimensions Network have a viable product at this time?
We have had a basic demo on our website for the last couple of months. This demo utilizes an Erlang matching engine and we have demonstrated it can match over 50,000 trades per second. We are currently working on the Alpha platform and adding in all of the additional features required for live trading. Our focus is to build a rock solid back-end, and then build a beautiful front end.
What are the advantages of an Exchange Aggregator?
Firstly, it is best to highlight what we mean by an Exchange Aggregator. Our Exchange Aggregator is just one component of the Dimensions platform. The Aggregator connects us to a number of other cryptocurrency exchanges, and once connected we are able to use our liquidity to buy and sell cryptocurrencies directly on the other exchanges.
There are a number of advantages for having an Aggregator, and I will highlight a few of the key benefits:
Firstly, as you know the price of cryptocurrency varies from exchange to exchange, sometimes the prices are very close, but often you will see one, two or even three percent difference in the price between the exchanges. Our Aggregator gives our users access to the prices from the other exchanges, so that they will be able to buy and sell at the best price available on the market, and critically without needing an account on all of the other exchanges. Our users just need one account with us and we take care of the rest of our back-end.
Secondly, let’s consider an investor or trader looking to place a very large order. If they place this large order on a single exchange then it will cause the price to move, and result in a non-optimal execution. We have all seen cases where a large market order forces the price on one exchange out of sync with other exchanges or a limit order which holds the price fixed on one exchange while the price diverges on the other exchanges. Our Aggregator will automatically spread the large order out over multiple so that the impact to any single exchange is minimized, and the user will, therefore, get a better overall price.
Would such an aggregator make for very easy arbitrage trades?
Yes, our Aggregator could be used for Arbitrage trading, but only up to the limit of our available liquidity on each exchange.
For example, if we had $10 million USD worth of FIAT on an exchange with very cheap Bitcoin, and $10 million USD worth of Bitcoin on a high priced exchange. The Aggregator could be used to buy and sell Bitcoin to capture the price difference between the exchanges.
There are two clear limits to this arbitrage, firstly, whether the $10 million USD FIAT runs out before the prices are equalized by the arbitrage, and secondly, the prices may equalize long before the FIAT is expended, perhaps after only a few thousand dollars.
Will you use the aggregator internally to capture this arbitrage?
This is a very important point. We will not do anything which could be construed as trading against or in preference to our users. We will only use our facilities to move funds around, not with the aim of making any profit.
How would you handle long-term arbitrage opportunities such as the higher prices often seen in the Korean market?
The two main types of arbitrage we are considering are short-term due to price volatility, and long-term due to systemic inefficiency or exchange isolation. In the case of the Korean market we will utilize the Forex markets to regularly convert and move FIAT currency between jurisdictions, and hence replenish the FIAT available at the cheaper exchanges. The cryptocurrency can easily be moved through well-established deposit and withdrawal mechanism at each exchange.
Will the security audit be an internal one or an external one?
Initially, we will perform internal security audits, and then bring in trusted outside parties to work with us to identify any potential issues. Audits aside, we believe a bug bounty program is a great approach to capture any potential security issues. There are many security experts in the Community and the bug bounty program will give them a great opportunity to work with us.
How will the traders interact with Strike coin?
The Strike coin (STC) is a reward token, and we will use this to reward our token holders. A 15% share of the trading fees from the platform will be distributed to the token holders in Ethereum (ETH) tokens.
The rewards aside, we may offer fee discounts for traders who hold our Strike coin, but you will have to wait and see what promotions we offer when our platform is live.
What are the pros and cons for the token holders?
The rewards are the initial benefit for the token holders. We are giving our token holders a 15% share of the trading fees to ensure that they benefit from our success. The more activity on our platform, the more rewards the tokens holders will receive. This creates a true win-win situation where everyone benefits.
Will the token holders need to interact with a smart contract in order to receive their rewards?
The token holders don’t need to do anything. Just hold the tokens in any Ethereum wallet which supports ERC-20, and we will send Ethereum tokens directly to their wallet.
We have considered options to send out rewards in other cryptocurrencies, as some users have asked about receiving BTC instead. This is something we have planned for the future, but for now we will do everything in Ethereum.
What are the dynamics between the real‐time currency and the tokens issued during the ICO?
The real-time currency is something we are very excited about. We feel that cryptocurrencies are here to stay and it would be great if all everyday transactions are conducted via a cryptocurrency.
We don’t want to give away too many of our plans at this stage, as I am sure you appreciate. But with respect to our token holders, when the real-time currency is launched, we will take a snapshot of the smart contract and issue the new tokens to our existing token holders.
What are the price ranges for the pre-ico and the ICO?
The ICO is being offered at 1 ETH to 800 STC, with a bonus scheme that we will announce closer to the ICO.
The Pre-ICO participants will receive a maximum token bonus of 25% in return for their early contributions. We feel that this is a fair bonus given the additional months they have locked up their contributions for.
How many tokens will be issued at ICO?
We have fixed upon a maximum token issuance of 240,000,000 STC.
What percentage will be reserved for the founders/advisors?
Good question. We will be selling 60% of the tokens during the ICO.
We have reserved 20% for advisers and business partnerships, 10% for staff incentives and 10% for founders.
What is the hard cap in USD?
We have set our hard cap in Ethereum tokens, with a maximum contribution of 150,000 ETH.
Will you reduce the Hard cap given the recent rise in the Ethereum price?
We have considered a reduction in the hard cap as Ethereum is trading significantly higher than when we set this cap. But for now, we will keep the cap at 150,000 ETH, and then review again just before the ICO.
As you know the cryptocurrency market is very volatile and I don’t think anyone can accurately predict what the price will be in January. Let’s wait and see.
What are the requirements to participate in the ICO?
Our ICO will accept contributions in ETH tokens sent to our smart contract, and there will be no minimum or maximum contribution level. We have considered accepting contributions in other cryptocurrencies and we will do this if there is sufficient demand. For anyone who wants to contribute in other cryptocurrencies, please send us an email. firstname.lastname@example.org
For more information please visit: https://dimensions.network/en/
We thank Stephen Mullens for the interview.