Sologenic SOLO Facts: Investors seeking to trade cryptocurrency synths and participate in derivatives markets that are different from The Synthetix platform of Ethereum, Solana’s Solon, and the PolkaDot trade can now choose a different alternative: Sologenic.
Sologenic is a derivatives-related protocol built in the Ripple network that allows the tokenization of securities stocks, ETFs and stocks commodities, and other non-blockchain assets. It can bridge the gap between crypto and traditional markets, making cryptocurrency more accessible. What exactly do you know about Sologenic (SOLO), and how exactly does it function?
Derivatives are the 2nd most frequented trading platform, following spot markets. Since cryptocurrency and its technology are a major factor in decentralized derivative markets, We will examine Sologenic. This relatively new venture aims at making blockchain-based derivatives more efficient than ever. But before we show Sologenic’s capabilities, it is necessary to first clarify the meaning to understand the concept of derivatives and tokenization.
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Sologenic SOLO Facts
What is Tokenization? How does it build derivatives?
In blockchain technology, tokenization is described as the method of turning physical objects or real-world ones into digital tokens. While emerging trends such as NFTs or non-fungible tokens (NFTs) are the most recent trend in this space, the primary use-case of tokenization has been the development of decentralized derivatives markets.
What are derivatives? The name implies that derivatives are assets that draw their value from other assets. It is a good option for those who want to purchase contracts representing an asset when purchasing ‘the real thing’ isn’t feasible. Consider it as buying an investment contract that tracks the value of gold rather than purchasing actual gold bars. The actual gold bars need to be transported, secured, and stored somewhere, and all the rest. For investors who just want to speculate, buying the gold bar instead of derivatives does not make sense.
There are many use instances for derivatives and their corresponding markets. Market participants participate in derivatives to hedge their positions, speculate on the potential price change for investment, and even gain leverage. Most investors prefer to come across CFDs (Contracts for Difference) as their initial derivative.
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In the crypto market, derivatives are typically distributed and are often found by way of cryptocurrency synths. A well-known instance of a company that holds these assets is Synthetix, a derivatives liquidity platform based on Ethereum. By staking SNX tokens and allowing users to use the platform, they can offer derivatives that are regulated by oracles that are not centrally controlled. In exchange for staking the tokens, they earn fees which are then recouped by the market.
As of now, Synthetix has been crypto’s leading player in customized and decentralized derivatives. None of the other networks, not even Solana and Polkadot, has provided a better alternative until Sologenic at the very minimum.
What’s Sologenic? (SOLO)
Sologenic is a product based on the blockchain network XRP designed by institutional and retail investors. It tokenizes assets and securities sourced from a range of TradFi and new markets. Sologenic aims to connect the traditional world of financial institutions and cryptocurrency by making the economy more transparent and allowing investors to utilize cryptocurrency assets in every way they want.
Sologenic is, in essence, an ecosystem that includes a decentralized exchange, a native blockchain wallet, as well as an option for tokenization brokerage. However, before we look at the advantages of these services and products, We will first outline how Sologenic functions and what it does.
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In the end, the goal for Sologenic is to allow on-demand tokenization of over 4000 traditional assets such as commodities, stocks, and ETFs that are listed on more than 30 international stock exchanges. Sologenic believes that for a service like this to satisfy the needs of the financial sector that it needs the use of a modern and modern blockchain, making use of Ripple.
Every derivative of Sologenic is produced as a stable coin. These stable coins are supported by a 1:1 ratio, which contrasts the actual asset that is being discussed. Stablecoins serve as a symbol of ownership. When an asset tokenized is created, the currency is the symbol.
Sologenic’s principal business concepts of Sologenic are:
- Tokenization on-demand
- Trade assets that aren’t blockchain-based
- Cards that are cryptocurrency
- Participation in the community
- Rewarding yourself
What’s SOLO, and what can it be used for?
SOLO can be described as Sologenic’s native cryptocurrency, deployed for liquidity-providing and market-making functions. The coins are issued to the XRP ledger, which allows the transfer of liquidity in minutes. Sologenic’s entire ecosystem is centered on the usage of SOLO, which is essential in removing entry barriers that prevent retail and institutional investors from trading other non-blockchain assets. In short, the token is mostly used to purchase and sell ETFs, stocks, and commodities using the protocol’s services, which makes it a token for utility.
As of this writing, SOLO is ranked 281 on CoinMarketCap’s leaderboard for cryptocurrency. SOLO has a market capitalization of $183 million and is trading at $0.91. SOLO’s total supply of circulating coins is 200 million coins. This is 50 percent of the number of coins available. SOLO can be found on exchanges listed below: ProBit Global, Cornfield, BitForex, HotBit, CoinTiger, HitBTC, and Sologenic’s DEX.
A Review of the Ecosystem Sologenic
Sologenic is a thriving ecosystem that includes three major items and services. Sologenic is already planning to launch additional products soon. However, to focus on the review, we’ll limit our review to the decentralized exchange that Sologenic offers and its tokenization brokerage and wallet solution.
Sologenic’s tokenized assets can be freely accessible on the native exchange of the protocol, a decentralized one. It allows users to trade and store SOLO stocks, ETFs, stocks, and commodities. The DEX is an online platform that can also be accessed via its Android and iOS digital wallets.
The decentralized exchange is built on the XRP ledger and is available in six languages. While the platform is an order book-style DEX the users retain all ownership over their assets through self-custody. This means that the exchange can access funds through a wallet owned and managed by the individual user.
The decentralized exchange can be used for processing trades, finalizing settlements, and exchanging funds almost instantly. However, what’s most interesting to traders is that fees are just $0.000005. The DEX can process up to 1500 transactions every second, which is the same as trading on central exchanges.
In addition, traders aren’t only restricted to token swaps. They can benefit from advanced trading features, including market orders, limit orders, stop losses, etc.
Investors in crypto can use the Sologenic DEX by connecting their wallets. The DEX is compatible with the following blockchain wallets; thus, as of now:
- SOLO Wallet
- Ledger Device
- App XUMM
Its Solo wallet is Sologenic’s blockchain wallet. It can be used to store tokenized assets and cryptocurrencies. Users can create and manage the various wallets using the app. They can also keep track of live markets, transactions, and withdraw or deposit assets.
As previously mentioned, the SOLO Wallet is the host for both the wallet and DEX. It’s available for iOS and Android, with not many variations between the two versions.
Solonex is a tokenization-based brokerage solution specifically designed for financial institutions and other institutional investors, like banks, investment companies, brokers, brokerage houses, and exchanges.
SOLONEX can tokenize non-blockchain assets, use fractional trading, 24/7 trading in the form of a round of funding, and manage liquidity and handling custodial and liquidity services. Overall, it’s an investment suite designed to allow investors to access decentralized markets using the same capabilities and security, efficiency, and effectiveness available in TradFi.
Like all their other services and products, SOLONEX is also built on the XRP Ledger. Be aware that retail investors can’t access the product at hand, and all interested parties should first schedule a demonstration with their team.
As you can observe, Sologenic is a derivatives protocol with many potentials. Through Ripple’s scalability, collaboration mechanism for consensus, corporate connections, and other useful features, Sologenic has created an ecosystem with a lot to offer both institutional and retail investors.
However, as with any other cryptocurrency, Sologenic’s main problem is that it is not getting acceptance. Any cryptocurrency focused on providing service must have a stable number of users to make it worthy of consideration, especially when volume and liquidity are involved. Therefore, for Sologenic to be able to take on the dominant derivatives platforms such as Synthetix, it must provide highly competitive features adequate to attract crypto investors from the neighboring networks.