Spectre.ai Review : The house always wins?
April 28, 2018
Spectre stands for Speculative Tokenized Trading Exchange. Spectre is a broker-less market prediction platform. The usual functions performed by a broker are given over to smart contracts and the blockchain.
These smart contracts and algos will manage Smart Binary Options, Smart CFDs: These are bets between traders or the liquidity pool on the prices of Cryptos, Stocks and Commodities.
Spectre passive income / Spectre dividends
Spectre has two tokens SXDT is a dividend token, and SXUT is the utility token used to pay fees on the platform.
- The dividend token gets 50% of the fees paid on the platform. Each trade will have a fee of 4%, of which 2% goes to the platform and 2% goes to SXDT holders
- The liquidity pool is similar to the house in the casino if all goes as planned the liquidity pool should grow and with it the scale of the platform and the profits.
- 3% of fees will be used to by buyback utility tokens until 15% of outstanding token supply remains in circulation
- A special dividend will be paid out to SXDT if the liquidity pool grows above a certain limit.
- To claim the dividends, SXDT holders will need to register for KYC on the site. US residents will not be allowed to register.
- When bets are matched between users the liquidity pool collects the fees and is in no danger of making a loss.
- Spectre is co-founded by Karan Khemani CEO. He has worked on the development of trading platforms for many years and was an algorithmic engineer. He designed Spectre based on the feedback of many traders. See more team members: www.spectre.ai/team
- Spectre has jumped the post ICO risk of not being a basic scam, as they have created an MVP and a real money beta was launched on the 31st March. In May: main net launch.
- Spectre claims that they have already made 250k in profit.
- Spectre.ai claims that traditional brokers have an incentive to game their exchange platform to their benefit, there is a conflict of interest between traditional brokers and their clients because of the way fees are structured. Spectre is a decentralised broker with transparent rules and fees for trading and withdrawal.
- Spectre gets paid on volumes, not on losses; their incentive is to make the trading experience easy to use.
- Spectre will not have access to your funds; no deposits are needed to be done on the platform.
- Spectre has a well-structured marketing game plan.
- The retention rate of traditional brokers is 110 trading days; Spectre will increase this number by clear rules and fees.
- Two tiers of affiliates.
- 7% of the |ICO fund will be used for acquisitions of brokerages with more than 10,000 traders
- The algos on Spectre will determine the profit for SXDT token holders.
- The size of the liquidity pool determines the number and size of trades that each trader can perform
- The actual liquidity pool can be monitored in real time.
- Not all the liquidity pool will be held in Ethereum, some of it will be held in other more stable assets.
- Users facilities
- Traders will have access to binary crypto trading, the top 10 to 30 coins and other altcoins.
- Spectre has partnered with Kryll.io to facilitate the creation of strategies
- User Algo bots can trade against Spectre algorithmic bots
Cons / Risk
- At this time Spectre has not been tested under real-world conditions.
- SXDT could be classified as a security and exchanges could delist it.
- Binary options regulations and crackdowns are coming. Spectre could get caught in the net, even though it is much more transparent than other players.
- Strong ties with the Ethereum ecosystem
- Spectres liquidity pool will be tied to Ethereum and it’s success. Ethereum is facing several uphill battles; because of centralisation, Proof of Stake switch and competing platforms mainly Eos.
- Ethereum blockchain transactions cost gas and trading fees.
- Ethereum User wallets are not user-friendly
- Ethereum Blockchain can hard fork.
- Hacked smart contracts have been hacked before
- ERC20 token can have bugs LINK
- The Ethereum network does not yet scale. The CryptoKitties at launch slowed down the network significantly.
- A clone of Spectre could be launched on EOS before Spectre takes advantage of EOS fee less transaction architecture.
- The fees for using the platform are denominated in Ethereum, whose prices are very difficult to predict, very small bets may not be viable.
- Traders will have limits on how much of the liquidity pool can be accessed, which might limit the use of Spectre only to retail clients, at least initially. The big money is with institutional players. Although I am not so sure they trade with binary options.
- Users will not own the underlying assets when trading on Spectre, meaning that the transaction depends on the liquidity of the other party. This should not be an issue, given the algos will handle this automatically.
- The algorithmic bots on Spectre may not function well or maybe outsmarted by other user-created algos, creating losses for the liquidity pool.
- The market is extremely volatile the binary option can work against the platform
- Spectre relies on Oracles that feed the prices of the assets that have been bet on. If these are hacked the hacker can slowly drain the liquidity pool.
- Spectre may be attacked in many ways by those who are bound to lose most if it is launched successfully.
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