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Are banks currently allowed to actually buy/hold $DEFX or will this be done in a different way?
While we would never give financial advice, nor suggest that anyone should speculate on the DEFX token, I can outline some of the economic elements that underpin our utility token. We have placed the token at the heart of our ecosystem, with utilities that are closely tied to the various revenue generating verticals of the business. The tokenomics have been designed to create demand drivers for the token through purchases by institutions to receive the discounts to trading fees. We have also built in elements to slow token velocity such as the buy and hold utility. And beyond that DEFX will also have a deflationary supply, as no further tokens can be minted, and there will be burns of the token through some of the utilities. After years of building, we have transitioned from a crypto project to a crypto business. We are now generating significant revenue, profitable, and scaling, with more verticals to come online over the coming weeks and months. DEFX is about 80% circulating with all tokens unlocked, and is well distributed throughout the holders, rather than being highly concentrated in just a few whales.
Financial institutions are very cost sensitive, and are always seeking ways to reduce costs. We have created our tokenomics such that by purchasing DEFX, they will save more money than they spent, in discounts to fees. So the incentive is simple arithmetic. We are also integrated into Fireblocks, meaning institutions can easily hold DEFX as part of their crypto portfolio. It's also worth mentioning that DEFX is by far the smallest token by marketcap that is integrated into Fireblocks
I think you are confusing two different things, let me try to clear things up. In terms of the DEFX utility of receiving discounts to fees, the following applies: We will have 3 main cohorts of customers. White glove customers which are more manual and resource intensive, small cap automated customers, and large institutional automated customers. To date, the majority of our customers have been in the first category. We are currently onboarding customers of the second category, to the automated version of the Mauritius business. The third category will be the customers using the bank model once that is live. The discount utility is primarily applicable to the automated customers. We have a few of these in the small cap business that have expressed interest, and so we hope to have this utility starting with these customers soon. Then separate to this, we also have one customer with which we have developed an entirely new business vertical, and because of the unique characteristics of this we are able to integrate the DEFX utility for buy and burns at a fixed % of the revenue of this vertical. We hope to be able to share more about this very soon.
Thanks Chris. What specific plans do you have to actually drive DEFX adoption by clients, so the token isn’t just a passive side-option?
You talk a lot of plans for utility of your DEFX token, but is there any utility now? If not, when will there be utility?
No they are not required to hold DEFX, or pay in DEFX. However, the utilities will be structured such that it makes arithmetic sense for them to hold or pay in DEFX. For example they will receive a 20% discount to the invoice if they pay in DEFX. Or for the buy and hold utility, they may buy $20k in DEFX and save $40k in fees over the period. With this approach we will make it very attractive to participate in the DEFX utilities, and institutions are very cost sensitive. They are always looking for opportunities to save money. We have built the DEFX utilities into our core business offerings, and whenever we develop a new vertical, we will always implement a DEFX utility with it. Thus as long as the business is successful, DEFX usage should increase alongside the business.
Thus far in our journey, we have been operating with very limited capital, as our initial raise wasn't large by crypto standards. So without the war chest that many crypto projects enjoy, we have been forced to be very careful with how we allocate funds. We have by necessity, focused on building a viable, revenue generating and scaling business, that can thrive and support the token in the long term, rather than going the route of burning all our capital on marketing before we had a working product. This means the future looks very bright for DeFinity and DEFX, but it has meant that some other aspects have unfortunately been underfunded to date. With the injection of capital that the Series A will bring, we will have much more freedom to allocate funds for both liquidity and marketing, to support the token and create the thriving and organic market for DEFX
There will be a number of different mechanisms for both buybacks and burns that are linked to different verticals, and will occur at different time intervals. We have a new vertical going live very soon which will have a directly associated buyback and burn of a % of the total revenue of that vertical. These will occur perhaps weekly or even daily, depending on market conditions. We will also be offering discounts to some client fees when the client pays in DEFX. This will result in the client buying DEFX from the open market to pay for the fees, and when we receive these payments, some of this DEFX will be burned. This utility applies to our partnership with Utila, and also to our market making offering, and will also apply to some clients that pay their fees by monthly invoice once the bank model is live. Regularity of this utility will depend on fee payments, so is likely to be monthly for each client who takes up this fee reduction opportunity. We will also conduct ad hoc buybacks with revenue from the whole business, but these buy backs cannot be at regular intervals due to securities laws, so they will remain at random in frequency and amount.
You claimed to have one customer out of over 100 who is willing to do the integrated DEFX usage solution for trading which then generates buy backs and burns. Why is less than 1% of your clients interested in getting a discount? What are your plans to increase that rate?
How does the planned Series A funding benefit existing DEFX holders?
What is the long-term incentive for institutions to hold the DEFX token instead of just using the platform’s services?
Are institutional clients actually required to use or hold DEFX tokens for settlement or fees, or can they use only fiat? What prevents DEFX from becoming just another “utility” token with limited real-world use?
In terms of strong fundamentals project with potential for maximum gains, I doubt anything can compete with DEFX https://medium.com/@DefinityDetails/definity-defx-91b0a916b2c9
At some point it will all be about institutions and their entry into digital asset trading. In my quest of finding institutional focused crypto projects I stumbled upon Definity Markets. They seem to be lightyears ahead in terms of product readiness. I read they recently had their first live trade by one of their big clients. I DYOR and think it could be a gem. I am no team member and not affiliated in any other way than owning a small bag of tokens. Below some information I gathered: Definity Markets is a London based fintech company with connections to big banks and several financial institutions. They have a team with long experience in TradFi including leadership roles in major financial institutions, led by Co-Founder/CEO Manu Choudhary (previously Director FX Sales at Lloyds Bank). They are owned by DMALINK who have been running a successful and rapidly scaling FX business (FX & precious metals) since 2017, with major international banks as partners and over $1T of completed transactions - currently over $1B+ per day (see more below). One of the major narratives in the upcoming bull market will most likely be based on institutions and this project has absolutely huge potential because of its institutional connections and technology! They have recently launched a world first trading model that allows institutions to trade crypto at lightning-fast speeds, while minimizing counterparty risk. They are NOT an exchange. DeFinity does NOT take custody of either crypto or fiat. The custody of fiat is with a European Investment Bank. Crypto custody is either self-custody on Fireblocks or via an accredited custodian such as BNY Mellon. They can do a maximum trade size of $100m and $500m via Algos (they will upscale later). They offer Fiat On/Off ramp services to crypto native firms. They are regulated through FSC Mauritius. Their institutional asset trading platform has been operational since September 26th. 6 institutional clients (for now under NDA) have been onboarded and are trading live. Definity has 60+ clients lined up to join the ecosystem. The platform is not for retail users, only for institutional clients. Institutions will hold $DEFX (native token) to get discounted trading fees among other features/benefits. A % of the fees paid to use the Definity platform will be used to buy back $DEFX from the open market and then burned. Buy backs will be a percentage of entire group revenue (incl. DMALINK revenue). Open market buys mean that a CEX with proper liquidity is essential (and in progress). With a current market cap of around $5 million and almost all tokens in circulation (a part is reserved for farming pools/liquidity/market making) there's quite a lot of upside to the token. With a real use product like this, combined with massive institutional clients (think Big EU banks for partners) this could be a true gem! In short / tldr: A London based crypto focused company called DeFinity Markets. Microcap: current mcap $5.1M and FDV $7.7M Their ecosystem token is $DEFX Available on BSC (Pancakeswap) & ETH Offering institutional crypto trading and Fiat On/Off ramp to crypto native firms Institutional clients using the platform will pay fees in $DEFX (new tokenomics document in progress) CEX is being worked on for buy backs on open market Their platform is designed to cater to the specific needs and expectations of institutional investors, such as banks, hedge funds, asset managers, and corporations DeFinity leverages blockchain technology for transparency and security while implementing high-frequency trading capabilities to meet institutional demands Owner DMALINK has 40 live institutional clients including 16 banks, including: Danske Bank, Nomura Bank, Crédit Agricole CIB, CME Group etc. It's also partnered with Tier 1 European investment bank for crypto trading As for additional tokenomics there currently are staking pools available through their dashboard (BSC & ETH pools) for staking rewards. Right now farming pools for liquidity are being prepared. The supply is fixed and future buy backs & burns will decrease supply.