Crypto Investing #24 – What Is A Cryptocurrency Proxy Market?

Tai Zen: What’s up guys! This is Tai Zen again.

In this video, I got my buddy, Matt with me and I’m explaining to him what a proxy market so that you can understand it too.

What happens is Lisk just came out with their ICO. That’s like the cryptocurrency version of an IPO. What these proxy exchanges are doing, which belongs to some guys that have money, is that they’ll go buy like 1.000.000 or 2.000.000 tokens, whether it’s Ethereum, Lisk or Augur. The reason is they know that there are people out there missing the ICO or the crowd sale and those people want to trade it or whatever they want to do with it.

Therefore, what they’re going to do is before the market even opens, before the currency is even made available to the public before the software team delivers the coins to you, there are these guys that want to make money. They buy their inventory and they promise that they have a million of these, let’s say Lisk for example, and they are willing to let you buy and sell it and trade it and they’ll make money on the transaction fees.

Right now at YoBit.net, there are people that are trading these proxy tokens that represent the real Lisk and whenever the real Lisk comes out, the owners of YoBit.net are going to give it to you.

When you go there and you trade those proxy Lisk tokens or coins, the risk that you are facing is that when you do it, there’s a chance that when they get the actual real Lisk coins, they won’t give it to you.

However, I don’t see them doing that because they’re going to make a lot of money on it. I did some calculations last night after I made the other video and I realized that they are making probably around $30.000 to $40.000 a day in transaction fees alone. Because of that, it’s really not in their best interest to screw over the customers.

You have to do your due diligence. Don’t think it’s safe I say they’re not going to scam people. I’m not saying it safe. I don’t work for YoBit.net. I don’t know. It’s the first time I’ve even heard of them. I’ve heard of the Kraken, Poloniex, Coinbase, Mt. Gox, BitInstant, but I’ve never heard of YoBit net.

I think what they’re trying to do is they saw the success of the Ethereum going up to a billion-dollar market cap. Besides, the exchange as Poloniex is making $80.000 – $100.000 every day or so in transaction fees alone from all the people trading Ethereum at their exchange. Therefore, they’re trying to jump in on the game in the cryptocurrency business and there’s nothing wrong with it as long as you don’t screw people around. It should be legit.

I don’t have time at this moment, but if I do, I would jump in and buy a few proxy coins just to see how it responds. If somebody out there does it, please take screenshots of it as evidenced by a few and see if they actually give you the real Lisk when it’s available in the market. I’m curious to see because I have not done it myself, but I know t how it works.

Now the benefit to these exchanges is this. Now everybody is trying to get all the business and all the trading business at their exchange, so when Yo Bit does that, they take a big risk to buy, let’s say thousands and millions of Lisk to attract all the customers. By doing that, whenever Lisk finally is made available, all the people will come there and trade it there.

It’s just like Poloniex. Poloniex was the first one to bring Ethereum to market, so now everybody is trading it at Poloniex and nowhere else. There are a few other smaller places but the bulk of the volume is being traded Poloniex.

The target of YoBit.net is the same. Once they get them the majority of the volume, all the traders are going to come here because the good and smart traders are going to trade where it has the most volume.

Hopefully, this video helps you understand what a proxy market is and what an IOU is. Sometimes you’ll hear the proxy tokens being referred to as an IOU. Basically, you’re trading the IOU back and forth. When the real one comes out, they’ll give you the real coins.

Thanks for watching this video guys. If you guys like it, give me a thumbs up. If you don’t, give me a thumbs down so I’ll stop making them.

If you haven’t subscribed to this channel already, make sure you hit the subscribe button and I’ll share some more information with you as I come up with it. My buddy Leonfu.com, the Warren Buffett of crypto currencies also does his research, then we’ll share with you. We got lots of good juicy stuff coming up. Thanks for watching. See you in the future video.

Slide
Cryptocurrency Investing Blueprint™ Course Cover

We believe you should NOT be in front of the computer all day making short term, in and out trades. That is no different than having a “day job” at home instead of at the office. After completing the blueprint, you will learn how to PUT your money to WORK for you in the crypto market.

Slide
Cryptocurrency Investing Bootcamp - Tai Zen & Leon Fu Dot Com 6

If you want to GET RID of the anxiety, nervousness, self-doubt, and FEAR of picking the “wrong” cryptocurrency and losing your hard earned money… then don’t think twice about it; get the blueprint today because it’s the perfect fit for you.

Slide
Cryptocurrency Investing Bootcamp - Tai Zen & Leon Fu Dot Com 12

You will learn “The VC MAN Method™” that we developed that allows you to systematically identify “A” Tier cryptocurrencies worth investing in, that are not scams, by identifying the 5 Key Traits of a Profitable Cryptocurrency.

Slide
Cryptocurrency Investing Bootcamp - Tai Zen & Leon Fu Dot Com 6

You will learn how to properly exit a trade so that you will be profitable even when you are wrong over 60% of the time! Imagine being RIGHT less than 40% of the time in your crypto investing and still be profitable! You do not have to be RIGHT all the time to be successful in cryptocurrency investing!

Slide
Confident Bitcoin and Cryptocurrency Investor

If you have the burning desire to make Life Changing Profits™… Faster Than You Ever, if you are SICK & TIRED of struggling to figure things out alone or listening to people who don’t make a living from crypto investing… then this blueprint is a perfect fit for you.

Slide
Confident Bitcoin and Cryptocurrency Investor

YES, there is a guarantee! If the Cryptocurrency Investing Blueprint™ did not deliver on what was promised on this website, simply make a request within 30 days for a refund, and we will cancel your student access and REFUND you back 100% of your purchase in US dollars.

Now there’s no excuse! If you’re serious about making Life Changing Profits™ in crypto investing, then click on the link below and order your copy of the Cryptocurrency Investing Blueprint™ immediately!

Leave a Reply