The Stox Ico was presented as a huge opportunity in the decentralized world. Some including Floyd Mayweather took a position on the first day. Not to say Floyd Mayweather actually knows anything about investing.
The target of the platform is prediction markets which allows people to bet on any outcome in the world. Like who will win for President or even whether or not college classes will be cancelled because of snow.
Any user can create an event and puts up STX as collateral for the event. When each event is created it ultimately represent a new smart contract on the blockchain. People joining in events pay the fees with STX in hope for a return of winning the outcome. The fee is set by the creator so all parties have the opportunity to be prosperous.
How it’s Connected to Bancor Protocol?
The platform is being built with the Bancor protocol and creates a peer-to-peer experience for prediction markets. The app will also utilize on-chain access over Ethereum to Stox smart contracts.
The Bancor protocol is supposed to be the liquidity solution in the blockchain world eventually. Liquidity just means that there is less volatility and more volume helps reduce large price swings. The goal is to allow people to transfer money between crypto’s without trouble. Also, built-in price discovery is one of the advantages to using Bancor.
Is Stox Different from Augur?
Stox is looking to be the front runner by improving upon the mistakes of previous launches like Augur. The main issue with Augur is that the betting is done with another token therefore destroying potential user growth in REP.
Now you may be wondering why user growth means anything at all. Well, I have said time and time again that if a token doesn’t increase in aggregate demand then it will never increase in value. Augur may be a really great platform for betting but it will never acquire mass acceptance without growth in REP.
The best part about Stox is the fact that the team has significant experience running a business. They previously built up Invest.com and ran the business well enough to generate pretty substantial revenues.