With a dizzying array of token issuance platforms, it can be difficult to distinguish one offering from another.
That’s why we’ve put together this convenient guide to some of the points that differentiate HCX (Himalaya Capital Exchange) from other security token platforms and make it stand out in the crypto arena. The field of security token issuance is still the Wild West as far as industry standards and compliance are concerned. Companies are forced to create their own standards and interpretations of regulatory requirements. Platforms that provide technological support for token issuance still require companies to engineer their own legal frameworks.
The end-to-end platforms that are common for IPOs or other types of traditional securities offering do not yet exist for security tokens. At the same time, the industry is calling upon institutional investors to take a leap of faith with security tokens. Big players are gearing up to trade security tokens as soon as regulatory frameworks are established. There’s a massive gap in the industry between the vast potential of securitization and the process to facilitate it. This is where HCX comes in — an end-to-end platform for security token creation, issuance and trading that is setting the industry standard for securitization.
The main differentiation of HCX is that this platform addresses many of the challenges of the crypto markets from its very inception. Right now, one of the biggest problems with the crypto market is its volatility. The value of a token shoots sky high based on nothing at all, a bubble which is sure to burst. HCX creates stability in two ways. First, the value of the platform’s internal token, CCX, is pegged to a fiat currency, with the flexibility to shift to another pegged currency to attain maximum advantage for community members. So each IPO offered through the HCX platform as Initial Security Token Offering is denominated in CCX.
And second, issuer-specific security tokens are asset-backed, providing a real-world anchor. Both of these factors prevent HCX from becoming the roller coaster that many tokens have proven to be. Another major problem in today’s crypto climate is inefficiency. Because the field is so new, companies are all scrambling to reinvent the wheel, creating their own processes and standards. HCX streamlines the process through decentralization and eliminating intermediaries. This doesn’t mean that there’s no oversight — in fact, with the transparency of the entire HCX community determining the value and pricing of tokens, the actual worth of an asset is a lot easier to establish. Going beyond the basics, here are a few more ways that HCX stands out from the bewildering crowd of competitors.
1) HCX tokens combine security and flexibility
While HCX is a utility token used to raise funds during the ICO stage only, following the ICO stage, investors will invest in the native Himalaya Capital Exchange (CCX) token, which is pegged to the U.S. dollar. CCX will be immediately exchangeable for fiat currency while remaining sheltered from the volatility of crypto assets since it is anchored to the U.S. dollar. In addition, if at some point, a different anchoring model is desired, such as a basket of currencies rather than the single U.S. currency, the peg can be shifted ensuring optimal stability at all times. The Himalaya Capital Exchange platform will offer a crypto-to-fiat exchange so that issuers can easily convert CCX to fiat, and investors in IPOs (Initial Security Token Offerings) can deposit fiat, then convert it to CCX so that they can subscribe to the IPOs they choose to support.
2) Lower fees, fairer fees
Although both parties using the HCX platform pay fees, the fees are denominated in HCX token, and are generally lower, making the total overhead cost of the investment transaction lower overall, and fairer due to shared cost. HCX is also adopting a transaction-based fee rather than a percentage. Some other ICOs currently charge fees of 5%, while investment banks charge 7-10% of the capital raised on their platform. Regardless of the size of the investment, HCX’s simplified transaction fee model ensures that fees remain static, while the value of HCX itself will continue to rise as more investors and issuers make use of the platform. So, while subscribers to HCX token during its ICO are privy to the upside of HCX token as a cryptocurrency, regular investors and users of the platform who subscribe to the IPOs benefit from the stability of the pegged token CCX.
3) Multi-token flexibility
Unlike many other platforms, HCX offers the flexibility not only to liquidate tokens into fiat currency, but also through extensive fintech partnerships, the ability to trade security tokens issued by a number of other platforms. We are currently negotiating with several platforms in order to ensure both reliable cross-platform inter-negotiability as well as the highest degree of regulatory compliance and licensing.
4) More rational, democratic listing price
HCX is the first platform in the world to offer asset owners total independence when it comes to calculating the guidance issue price and setting their own Initial Listing Price. We believe you know your assets better than anyone else and that there is no need for third parties to undermine and second-guess your own expertise in this information age. Investment banks rely on market feedback to determine the demand-supply intersection, on which they then base the initial issuance price. HCX replaces these crude manual calculations with smart algorithms that seek market feedback and become more intelligent over time, as the platform supports more and more successful IPOs.
And further supporting a saner and more rational model of market pricing, the open and fair trading environment on the HCX platform will ensure that artificially inflated prices will not be accepted. The wisdom of the crowd, as well as automation functions such as smart contracts enforcement, operate instead of third parties to keep all transactions fair and honest, saving money and ensuring compliance at every stage. This gives every entrepreneur a fair chance to raise
5) Crowd-sourced curation
People who are new to the HCX platform often inquire about how we can ensure that bad investors or assets won’t get into the ecosystem and ruin things for everybody. With little conventional oversight and self-evaluated assets, it seems as if the platform is ripe for taking advantage of users who are less savvy. However, the HCX model views community members as “curators,” taking advantage of modern transparency and full disclosure on the part of asset owners to serve as the final arbiters of who is permitted to participate within the community, the value of assets being offered, and much more. Also, following the model being used successfully on many e-commerce platforms today, reputation is cumulative: a community rating for each issuer and investor is built up over time, offering a reliable organic alternative to third parties such as rating agencies. The entire platform will embody this democratic governance model.
Beyond all the jargon and shiny new technology, it’s simple: a token based on real assets offers the kind of oldfashioned security that utility tokens don’t, while still sharing the benefits of the blockchain, namely transparency and accountability.
HCX offers all this and more: – Security and flexibility, tied to a stable standard – Lower fees and fairer flat fees based on transactions – Multi-token flexibility and fiat liquidity – Market-determined fair asset prices – Crowd-driven curation to set community standards.
Today’s investors are eager to harness the power of blockchain and the HCX platform, with its ease of use and interoperability, creates a user-friendly entry point into the expanding world of