Recently, Defi has ignited the entire cryptocurrency world. Almost every cryptocurrency-related to DeFi has increased its price by at least seven or eight times, which is in sharp contrast to the situation of the mainstream cryptocurrencies. Some people even joked that the investors that have not been in contact with Defi are outdated.
The concept of DeFi is particularly a hot topic. At present, there are a large number of homogeneous products on the market. These projects are issued by some new teams, which have not been tested or proved by time.
MTC is a platform token issued by MtGox in the form of DeFi. Mt.Gox is a Bitcoin exchange located in Shibuya District, Tokyo, Japan. Mt.Gox was established by Jed McCaleb in July 2010 and then sold to Tibanne Co., founded by Mark Cappelles, in March 2011. In February 2014, it was forced to leave the market due to theft of Bitcoin by hackers, and online transactions were suspended.
The exchange filed for bankruptcy protection shortly afterward and has so far completed 90% of the investment compensation. In April 2020, Albert Jehy, the former shareholder of Mt.Gox, decided to restart the Mt.Gox exchange. Why is MTC preparing for the next wave of the market? Here are the reasons:
MTC is a platform token issued by New MtGox in the form of Defi, which is its first project. Since MtGox restarted in April, with cloud flare statistics, there are already more than 500,000 registered members. Compared to other Defi projects, the number of MTC members is far more than their members.
2. Right time
Anyone who knows Defi knows that Defi represents a bull market. The restart of MtGox is the beginning of the bull market, which is in May of this year.
3. Strong financial and technical support
MTC is supported by MtGox. Therefore, there is no need to worry about funding. Many projects are good, but in the end, they fail because of financial and technical reasons.
The design structure system of the MTC protocol is quite different from the trading model in traditional digital asset exchanges. Most traditional exchanges maintain an “order book” to match buyers and sellers of a digital asset. MTC is totally different. It uses the liquidity of reserves to realize the exchange of digital assets.
The reserves in the trading contract are provided by many “liquidity providers”. These liquidity providers deposit equivalent ETH and MTC tokens into this transaction contract. The first liquidity provider to provide liquidity in this contract has the right to set the exchange rate between this MTC token and ETH. The first liquidity provider deposits the amount of ETH and MTC tokens that he considers to be equivalent to this transaction contract and can set the exchange rate. And if the exchange rate set by the first liquidity provider is inconsistent with the larger market outside, then arbitrage traders will smooth out these spreads and maintain a consistent exchange rate with the broader market. After that, all liquidity providers will use the exchange rate at the time of deposit as the basis for calculating equivalence.
Simply put, it is a decentralized exchange that can quickly match transactions, match buyers, and sellers through algorithms, so that both parties can profit.
According to the above analysis, as the platform token MTC issued by MtGox, it must be one of the best Defi projects in the market. Let us wait and see.