Share trading essentially has remained unchanged since the 17th century: there is a buyer, a seller and in between the two, a broker facilitating the deal. While most exchanges have shifted to an electronic model and trades are conducted faster than ever before, there is still a central intermediary in stock trading, potentially adding costs, risks, time lags and administrative impediments.
A new blockchain technology based ecosystem holds the promise to changing this age-old mechanism: The DIM Ecosystem. The wider DIM Ecosystem comprises of DIMCOIN, DIMCOIN Foundation, the Hybrid Stock Exchange (HYBSE) and a state-of-the-art blockchain wallet that permits users to buy, sell, manage and hold DIM cryptocurrencies and cryptonised assets called DEPOTWALLET. The technology is based on the NEM blockchain technology and its DIMCOIN Initial Coin Offering (ICO) is currently underway, ending on August 27, 2017 (23:59 CET). http://www.dimcoin.io
What is the DIM Ecosystem?
The DIM Ecosystem offers services such as cryptonisation of equity, trading in cryptonised shares and assets, cryptocurrency exchanges, crypto-fiat currency exchanges, e-commerce, debit card purchases, business transactions, and commodity trading. All of these functions and services can be accessed through computers and hand-held devices. It will use the Data Interchange Module (DIM) cryptocurrency in two versions; as DIMCOIN and as DIM Currencies. The DIMCOIN is a speculative coin that can be exchanged against other cryptocurrencies with the value of the respective DIM Currency being equivalent to the fiat currency that it is exchanged from. Furthermore, only the DIM Currencies can be used as a means of payment in the DIM Ecosystem.
About the DIMCOIN ICO
DIMCOIN launched their ICO on July 16, 2017 and they have set a maximum cap of 10 million DIM TOKENs. One US dollar is equal to 1 DIM TOKEN + 100 DIMCOIN. It is noteworthy that the tokens are a representation of the ownership of the DIM Ecosystem as a whole. Investors who have more than 50 DIM TOKENs will receive 30% of the net fees earned on the DIM cryptocurrency transfers within the ecosystem, depending on percentage ownership of tokens. We asked DIMCOIN’s CEO Fabian Kippenberg, about their vision surrounding the ICO and he says, “We want to put the DIM Ecosystem solidly on its feet. All the elements are in place and our main objective is to utilise the funds raised during the ICO to acquire the skilled labour and facilities that will get the entire DIM Ecosystem functioning at peak performance.”
Bonus DIMCOIN are available to early investors: till 19th August, there is a 10 per cent bonus and from 20th to 27th of August a 5 per cent bonus. DIM have released a whitepaper that outlines the detail of their ICO plans but broadly the fund utilisation will be based on the diagram below:
Primary Development (30 %)
Marketing (25 %)
Outreach (25 %)
Functional Costs (15 %)
Legal & Compliance (5 %)
Can DIM revolutionise the markets?
Current trading practices have several issues. At the most, what we have today is just speeding up of archaic practices, and the number of intermediaries required to execute trades like stock transfer agents, depositories and registrars, etc. has grown instead of diminished. There are significant counterparty risks involved as well. Stock market products like Exchange Traded Funds (ETFs) have issues like tracking errors, which can have unexpected material effects on an investor‘s returns. Fabian believes that DIM can help solve many of these problems. He tells us: “Our underlying NEM technology is fast, reliable and totally secure. It eliminates the need for a middleman and further, the burden of high exchange fees. Due to its speed, it will be simpler to execute ETF-transaction-related trades with much better timing. Finally, as Blockchain is transparent by design, users can trace transactions and monitor their investments without third parties being involved, almost instantly.”
DIM will be utilising the Hybrid Stock Exchange (HYBSE.com) to facilitate the trading of their cryptonised securities, which will be a part of the Ecosystem. This exchange was formed by a group of financial and software experts who were formerly employed by the Frankfurt Stock Market. The trading will eliminate over regulation, high fee and long transaction times.
Fiat use will help raise public awareness
An interesting facet of the DIM Ecosystem is the use of DIM Currencies. In the Ecosystem, the DIM Currencies can be easily exchanged against fiat currencies – with the value of the DIM Currencies being tied to the respective fiat currency. Uros Trajkovic, Social Media Executive on the DIMCOIN team, explains, “All assets in our Ecosystem are valued in DIM Currencies as we believe that the more services and products are offered in DIM Currencies, the more the general public will accept it, and the more routine transactions are done, the better. This is one of the reasons why we made the process of creating a Depotwallet account as simple as possible. We wanted it to be intuitive and easy to use – as attractive as possible to the general public.”
It will be hugely interesting to watch the DIM Ecosystem evolve in the future and see how it will reshape the equity markets, equity products and other segments like the commodities market. However, one thing is for certain: it will have an impact on the good old fashioned stock markets and the investors who may end up benefiting from an era of low or no fee and higher transparency.
|Sender:||DIMCOIN / Hybrid Stock Exchange Corporation|
|Contact Person:||Fabian Kippenberg, CEO|
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