GameStar Exchange Explained in 3 Minutes or Less
Starting in 2020, people began to shift their attention from CEX exchanges to DEXs, which promoted a tsunami of DeFi development projects in 2021 and propelled the NFT market even further. Data from the NFT trading platforms Rarible and OpenSea showcase how dramatically the interest in NFTs has risen.
At the same time, the rapid development of DeFi as well as the profitability potential of cryptocurrency has led to the invigoration of interest in P2P marketplaces. Market analysis performed by Statista (2021) of current P2P transaction platforms such as Paxful and LocalBitcoins shows steady and stable growth.
However, although the growth is stable and on the rise, Paxful, LocalBitcoins as well as NFT trading platforms Rarible and OpenSea face various problems to which better solutions must be presented and overcome:
- Centralised custody of user assets on P2P platforms is risky, given the potential for compromise
- P2P platform transaction disputes are tedious and cumbersome, accounts are banned without warning, and user assets are frozen with no option to de-thaw them
- P2P platform transaction experience is poor, with fraud being a major concern
- P2P platform transaction fees are high, with Paxful’s fees ranging from 3–5% and LocalBitcoins’ at 1%
- High GAS fees are consumed in NFT transactions, and platform fees are 5–10%
- NFT transaction speeds are slow
- Unrealised potential in emerging markets in Asia, the Middle East and Africa
What is GameStar Exchange?
GameStar Exchange is a decentralised P2P trading platform created on Polkadot, solving a multitude of issues faced by current P2P exchanges with respect to the exchange of cryptocurrency for gift cards, game items as well as NFTs (with more services and features being introduced around this massive industry in the near future).
What problems does GameStar Exchange solve?
It creatively adopts a decentralised solution to solve the problems associated with the risk of assets under custody of centralised P2P exchanges. At the same time, being built on the Polkadot architecture, it mitigates the hurdles faced with the decentralisation of cross-chain P2P transactions by offering cross-chain support for BTC/ETH/DOT/BSC/USDT/BUSD, among others. In addition, the decentralised Taurus appeal protocol mitigates and dissuades scams and fraud while in turn rewarding appeal settlers. Furthermore, it solves the issue of slow NFT transaction speeds and has light KYC restrictions, which ultimately means the increase of liquidity of digital assets.
What is the market potential?
Through the Polka+DeFi+P2P model, GameStar Exchange provides a new set of gift card, game item and NFT trading solutions. In merging all of these massive markets together in a unique and innovative way, GameStar Exchange will not be directly competing with well established players in the existing market, but will instead facilitate transactions and enhance the liquidity of digital assets. GameStar Exchange only needs to realise a small portion of these enormous markets to obtain huge revenue potential, reinvigorating the market once again.
In the second quarter of 2021, GameStar Exchange will be seeking to obtain private equity financing and begin website development. In the third quarter of 2021, version 1.0 of the website will be launched and trading functions will commence, while subsequently expanding the market reach to a larger market demographic by launching version 2.0, supporting more trading functions. The research and development of the DEX will be launched in early to mid 2022.
Given the innovative and unique approach GameStar Exchange is taking on the P2P cryptocurrency market, with alleviating the problems and concerns faced by similar players, it aims to be the Amazon of this promising and evolving market.
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