Decentralized Algorithmic Trading on the Binance smart Chain.
Those who’ve been following us, know that we’re keeping our eyes on projects launching on the Binance Smart Chain. Especially in DeFi. This is because we believe the BSC is going to see continued growth throughout the months.
Today we’re introducing you to Mercor Finance. This post has been written for informative purposes, in order to enable you to do your own research and form your own opinion.
In order to understand Mercor, it’s important to first understand what algorithmic trading entails. Summarised, algorithmic trading is a form of automated trading through the use of computational resources and speed, in order to outperform human traders.
It’s safe to say that over 80% of all transactions today are done by automated trading tools. What’s interesting is that these tools have become smarter and faster throughout the years, making it difficult for them to outcompete each other. There’s all sorts of automated trading tools that look at for example various trading indicators, large money flows, social media sentiment, etc.
While this is used a lot in traditional finance markets (stock market), it’s nowhere as big for cryptocurrency yet. However, it’s coming up and it’s fast-growing, as more institutional investors
Mercor came on our radar before even launching, thanks to Chateau Crypto. There’s various other algorithmic trading platforms in the crypto space. However, Mercor is a first-mover on the Binance Smart Chain.
It’s interesting that Mercor aims to build a decentralized platform, rather than centralized. The difference is that rather than having the API, bot & trading strategy set by the user, on a decentralized platform this is done by using oracles instead. On the Binance Smart Chain this is likely going to be the Chainlink oracle, as indicated by their integrations on their website.
Mercor is going to enable ‘normal’ traders like you and I the opportunity to directly use complex algorithms through an accessible social platform that’s focused on ease of use and education. Developers are able to bring their algorithms directly to end-users, using the ‘Mercor Environment’. Which provides them with all the computational power and other tools they might need to create such (AI) trading algorithm.
Developers earn money based on the success rate of their algorithm, financial returns, usage and set commission fee.
Users get access to pre-set APIs and can easily start using these algorithms. Both developers and users pay for access (tiered membership model through staking) in MRCR tokens.
Mercor stated to be intends to move beyond just the Binance Smart Chain, aiming to launch on other chains as well down the road. Blockchain technology is used for various reasons such as regulatory reasons, being able to charge fees easier, efficiency, speed, privacy and security.
The platform is planned to initially launch on desktop, ultimately supporting iOS and Android as well.
As stated, MRCR is currently not trading yet. In fact, their early community private sale just happened on Tuesday, May 4th, with a 3 BNB cap per whitelisted user and a hard cap of 250 BNB. With a 20% unlock upon TGE and a 20% release every month thereafter. At a rate of $0.098 per token.
The public sale however has yet to follow and will happen the 26th off May, 2021, with a raise in BNB at a rate of $0.13 per token.
MRCR is a utility token, used for all sorts of things within the platform. As shown in the image below.
Upon listing on public exchanges, MRCR will be trading at a market cap between $2.5-5million USD. Meaning it’s considered to be a small cap altcoin.
Important to mention is that the Mercor Team decided to remain anonymous, at least until the IDO for privacy and security reasons. This fits their decentralized nature. Though, the team had to do KYC with Assure DeFi in order to be selected as a certified IDO on BSCstarter.
We’re eagerly going to follow the progress of the team and project throughout the upcoming months. We’d be interested in testing their platform, especially since it doesn’t support just CEXs but also DEXs such as Uniswap and Pancakeswap.
By default it’s clear that algorithmic trading is very promising, and has yet to see a lot of growth and adoption for cryptocurrency. While we enjoying trading manually, it could be interesting to allocate part of our portfolio to automated trading strategies.
Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.