Exchange rate Synthetix Network Token:
Synetix Network Token
The Synetix Network Token project has recently attracted more and more attention. Mainly due to very large increases and the great boom in DeFi tokens. However, SNX could have been attracted a bit earlier due to its sharp increases during the market bear market in 2019. It is a very innovative project presenting a completely different and different approach as well as the use of cryptocurrencies. The platform is used to trade synthetic assets. More specifically, it allows you to create tokens based on ERC-20, which reflect the assets available in the world. Using the Synetix Network, you can, for example, create synthetic APPLA shares or Bitcoin in the form of tokens on the Ethereum blockchain. Such a synthetic asset will imitate the movements of the relevant company, and the benefit for users will be that they do not need a brokerage account. The assumption of the entire project is to create a platform that connects various markets. Synetix Network Token therefore allows you to trade various types of stocks, cryptocurrencies, and even indices and other derivative assets of financial markets in one place.
History of Synetix Network Token
The project has been in existence since February 28, 2018, and its founder is Kain Warwick. Just before the start, exactly two days before, on February 26, an ICO was organized to raise funds for development. The people working in the project at that time were not disappointed, all the tokens intended for this were sold within 2 days. Of the 100 million ICOs, 60% was allocated, which gave Kain Warwick 30 million for the development of the project. The platform itself is still under development, introducing more and more new synthetic assets. Among others, indices, short positions, leveraged positions, stocks.
Principle of operation
Synetix Network Token operates on the Ethereum blockchain. It allows you to create synthetic assets in the form of ERC-20 tokens. These assets follow the markets to mimic their counterparts, obtaining a 1: 1 valuation. The entire platform is decentralized, making it impossible to manipulate the price and set your own value. The very way of exchanging or buying assets takes place in the form of smart contracts. Interestingly, the platform does not have an order book, and all transactions are carried out immediately at the actual peer to peer price. Looking more closely at the transaction itself, it proceeds as follows: The tokens that we want to exchange are sent to the zero address, where they are destroyed, in return we receive synthetic asset tokens that we wanted to buy the equivalent of our damaged tokens minus 0.3% commission. Then the commission is sent to a special address from which the entire pool is distributed among all SNX stackers. Moving on to the SNX token itself, what is it even needed for?
SNX is necessary to create a new synthetic unit. To create a new asset, you need to put aside 750%, and after changes even 800% of its value in the process of staking the native SNX token. This guarantees that each asset on the platform is not empty and has real coverage. Maintaining this proportion is not necessary and does not involve immediate loss of position, however, with at present at least 800% security, the user is eligible for network maintenance fees. It is supposed to be a system of incentives to guard and maintain security. Some users accuse the project of a lack of decentralization. It is true that at the moment some operations are centralized and monitored by managers, however, this situation is to change and is translated as supervision over the right direction of the platform's development. Keep in mind that this is still an innovative and growing project, so investing and holding large amounts on the platform involves high risk. It is associated with both the possibility of theft of funds and also the price fluctuations of DeFi projects.
A separate topic is the issue of the synthetic assets themselves. On the one hand, they have many positive aspects, but it must be remembered that they are not the right assets, but only imitating synthetics, and thus the user does not have any physical shares or cryptocurrencies. This may be important in the case of dividends or airdrops, because if you own shares or synthetic cryptocurrencies, you simply won't get them. Another issue is their impact on the asset's price. Taking Bitcoin as an example, at the moment there is a limited amount of 21 million BTC, but you can create an unlimited amount of synthetic Bitcoins so that everyone can have them. The only question is whether this will have a negative impact on the price of the cryptocurrency.
Wallet for SNX
The platform itself is used to store cryptocurrencies and in return offers a gratifying percentage of all users' commission, so it is the most preferred place to keep the SNX token. In addition, SNX can be kept on all ERC-20 token accepting wallets. For example, the most popular MyEtherWallet or MetaMask, which is a plugin for web browsers. Also among hardware wallets, both Trezor and Ledger handle ERC-20 tokens without any major problems.
SNX currently ranks 44th among all cryptocurrencies by capitalization. ATH, i.e. the highest price of the project, took place relatively recently, on September 1, 2020 and amounted to USD 7.85. The daily turnover on SNX is nearly $ 8 million. The asset is listed on 12 exchanges, 85% of which is traded on Binance and another 10% on Huobi. In addition to these exchanges, SNX can also be purchased on Poloniex or Kuckoin, but the turnover there is very low.
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Calculator Synthetix Network Token
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