On the Waves DEX platform

Where sell and buy meet somewhere in the middle.

There are some up- and downsides

A few years ago I got interested in the NXT blockchain. Especially when it got its own Monetary System {MS}. Unfortunately it did not lift up to its promise. Even though the MS created Tokens could be pseudo mined, adding value in the process, there was no real decentralized exchange {DEX}. The MS Tokens could only be traided against NXT. Even with Ardor, NXT follow up, being released, the Monetary System still was a bit of a stranger in a strange land. No subchain based on MS Tokens, no internal DEX market. Still keeping my TORUM that I created and minted (Keccak/SHA3) there though, because the Ardor blockchain is still in its early developement stage. But so far it had not been what I had expected it to be. And then came the Waves Platform blockchain, at some point, making it seem very easy to create an Asset Token and issue it. Where it could be traded on the build in DEX. Against any other Asset Token. Creating cost of 1 Wave, seemed very cheap to me, could mean a flood of new Asset Tokens...

There were a few downsides I noticed about the way the Waves DEX platform works. Asset Tokens could have the same name, just by using some caps for instance. The Waves Team apparantly has a verificication proces, which is a kind of censorship and centralization. Where the helpdesk does not seem to know how that works and that it has been on hold. Also it is unclear when you have send an Asset to another account, which caused me to sent the double amount sometimes. Something to keep in mind when using the Beta Wavesplatform website. On the other side it is pretty easy to create an Asset Token and send them to other accounts. The internal DEX {Decentralize EXchange} is working great. It is really possible to create any market pair. Something that Centralized EXchanges {CEX} miss. The most easy to use interface is the Beta online one, it seems the App is lagging behind quite a bit. But overall especially the online website User Interface {UI} is feeling quite natural to use.

A bit of tongue in cheek

Getting annoyed by the range of all the forking Bitcoin blockchain split clones that came to see the light of the day, I thought it would be great to have yet another one. The hardest and toughest of them all, it would be D Bitcoin! Well, that was a kind of a tongue in cheek suggestion. It would be called Diamond Bitcoin, but then it turned out that there was a team releasing the next forking Bitcoin blockchain split clone called... Bitcoin Diamond!? And it seems that there are even more Cryptos using that name. Yet, the Diamond Bitcoin Waves DEX Asset still only has 21 million Tokens issued, while Bitcoin Diamond has 210 million. And of course DBC is by far faster then BCD. (Do you still follow this?) No need to create yet another forking Bitcoin blockchain split clone. Looting value out off the original BTC one, like all those others did. Diamond Bitcoin, the Waves Asset Token {WAT} is substantive and can be bought and sold on the Waves DEX platform and also gotten from the Wavesdrop website, one every hour. And if Bitcoin Diamond, the forking blockchain splitter clone, does 2 USD, while they issue 210 million BCD, than DBC should do tenfold! (This is still kind of tongue in cheek...)

In the meantime Diamond Bitcoin is doing quite well on the Waves DEX, at the time of posting it is about half a USD cent worth. Other tongue in cheek kind of Asset Tokens that I issued on the Waves DEX platform were TULIP and DOTCOM. Mainly for the reason that it got all the free advertising that money never ever could buy, mainly on mainstream. Now what better to do than to turn this constant attack on Cryptos around by creating Asset Tokens that they constantly claimed Cryptos were? Only 1637 TULIP and 1997 DOTCOM were issued, and this could not be changed. And because the DOTCOM and TULIP only have a 1000 millies per Token they are extremely rare. Even in such a way that the Waves blockchain seems to have a hard time dealing with them. Bitcoin, and many others, are not that scarse actually, because the have 8 digits, that means there are 100 million Satoshi in one BTC, for instance. But that does not mean TULIP or DOTCOM will become extremely expensive. Although DOTCOM is at $ 3.62 at the moment, creating a total market cap of 1997 * 3.62 = 7229.14 USD. So far, not bad.

Advertising SMTs

Smart Media Tokens will be a great addition for the Steem blockchain. Because it will be possible to create a Token to be able to reward members that write in Nederlands {EN: Nederish}, or for those who create artwork, or the photography subcommunity. A bit like Bee-Hives that have their own honey for rewards. Or if a member does Bee-Hive (joking) and gets rewarded for that. The list of ideas goes on and on, like loyalty points, for instance. Anyway, I did create a kind of advertising Asset Token on the Waves DEX platform to already promote the Nederish language Hive SMT. This was handed out through an airdrop and also can be gotten at the Wavesdrop website. (Will put links at the bottom of this post.) The current market value of 1 GoudFlorijn.SMT {GFL} is about half a Dogecoin {DOGE}, also not bad. Also for the GoudFlorijn.SMT it is the market that decides where Buy & Sell will meet. Considering there are already almost 12'000 Asset Tokens been issued on the Waves DEX platform, it is doing quite alright. (Just over 20 million GFL were issued.)

Mostly it is about speculation

One Waves payed to issue an Asset Token does not give that much value to it right away. Even though handing it out, through free hand-outs and airdrops, like I did, does cost at least 0.001 Wave per address. In a sense this adds value to the Asset. Just like trading on the Decentralized EXchange does, as every filled trade does cost 0.003 Waves. More trading means more value getting added in that way indirectly. But in effect it is what ever the market 'wants' that creates value. And that is at the point where the prices of Buy & Sell are closing in on each other. This is also the moment in time where trades are moving faster and the 24 hour trade volume is rising. Yet there is no guarantee what-so-ever that Asset Tokens will gain value and keep it. They can start up high and drop to practicly worthless within a few trades. So it is all highly speculative on an internal DEX like that of the WAVES platform. That stated, let me remind you to only invest in Cryptos what you are willing and can effort to lose.

The Waves DEX platform can be seen, experienced, as a kind of training enviroment that is live. There is much to learn. Just have a look at how some do put very low values in very fast in vast amounts. This sometimes creates a huge wall that can even lock down trading. Looking at some of those high amount Sell offers it looks like some want to get rid of their Asset Tokens right away, but actually causing a market to freez. As no one wants to buy up that huge selling wall. It can be very interesting to watch several markets on a DEX like the Waves platform. To see where there are sell walls thrown up that will freez trading until those tens to hundreds of thousands of Asset Tokens are sold. Or those markets where traders try to dump the Asset Tokens they have, by undershooting the Sell Offers of others. This is done by offering a huge difference in selling price. For instance going from 0.9 to 0.0001, only getting a small profit, if at all, by doing so. Sometimes even combined with a huge amount of Asset Tokens in one sell offer, creating a wall.

Going for Bitshares and Steem

The Waves DEX platform is quite interesting. Trading, mostly on speculation, is fun to do, I think, even though it can be quite nerve wrecking when some traders are creating a sell wall that is also undershooting price decelopement. Yet, it is all in the game. It might even be considered a kind of miracle that Asset Tokens like TULIP, Diamond Bitcoin, DOTCOM and Goudflorijn.SMT actually seem to have created their own markets. Because there is a quite some comptition with those other 12'000 Asset Tokens at the Waves DEX platform. Timing might also have been a factor that trading is working for them. Yet I won't be creating more Asset Tokens there, as I see it mostly as a kind of a speculation game. That means there is a gamble, but the same goes for most Cryptos and even the stock market. It is part of taking high risks, with bigger chances on large gains, where also big loses can be had. Still, I like being active on the Waves DEX platform.

Also I want to create a User Issued Asset {UIA} on the Bitshares DEX. It is a bit more expensive and complex to do so. It will be another Cryptos realm experience for me. Mostly I am looking forward to the Steem Smart Media Tokens {SMT} as they really offer a connection with a value creating platform. Even though SMTs can be used all kinds of things, selling tickets for instance, trust tokens and what not. For me one of the great functionalities it can prove itself in, is where it is supporting sub-communities, like a kind of hives, the same way Steem works right now. But even have it being able to detach it from the Steem Power {SP} members have in their wallet. Maybe even being able to attach it too the reputation score of a member. Higher reputation, more voting power, getting more of the SMT reward. And being able to trade the SMTs and Steem/ Steem Backed Dollar {SBD} on the internal market. This will create a new boost for Steem. In that sense Steem SMTs have way more functionality and value than the mostly speculative Asset Tokens on the Waves DEX platform. But there will also be pure speculative SMTs issued, I'm sure.

Have a great one!

Finally the links

Mainly for the Wavesdrop Faucets

TULIP asset token

ID: DhNdGSkyttDmn72yMNN68dD6Xq6yLW2pph2yEFqVeSD4
This one was empty quite fast, but you never know when somebody decides to fill it again:
https://wavesdrop.com/?asset=DhNdGSkyttDmn72yMNN68dD6Xq6yLW2pph2yEFqVeSD4

Diamond Bitcoin asset token

ID: 2XEjzq8DfoLqg8C6NWbCNAnP1xUrA6Nb5pH4eKXZQZs2
More than 8 million are left and given away 1 at the time, every 60 blocks or one hour:
https://wavesdrop.com/?asset=2XEjzq8DfoLqg8C6NWbCNAnP1xUrA6Nb5pH4eKXZQZs2

DOTCOM asset token

ID: 6JHBYXmndYMgh2XQZwWX81fVSDKyhv4bpoctiruetUo7
It states 63'000 but there are not even that many issued. Only 63 DOTCOM in that faucet actually:
https://wavesdrop.com/?asset=6JHBYXmndYMgh2XQZwWX81fVSDKyhv4bpoctiruetUo7

Goudflorijn.SMT asset token

ID: AoJKtiwkbHzGjE3T7q3h3vKm43TD5LmBYHVLATncmy8K
Close to 700'000 of those are available, of the 20 million issued in total:
https://wavesdrop.com/?asset=AoJKtiwkbHzGjE3T7q3h3vKm43TD5LmBYHVLATncmy8K

All are without any guarantee, what so ever. The market will determine the value of theses Asset Tokens on the Waves DEX platform https://beta.wavesplatform.com.

Speculating with Asset Tokens on the Waves DEX platform

Image cc-by-sa @oaldamster.