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Will SPECTRE.ai change binary options and forex forever?

May 09 2018
By
Jonathan Smith

SPECTRE is short for speculative tokenized trading exchange, but more importantly is one of the potential disruptors to the forex and binary options industries. The company offers a solution to one of the most common problems – trust. As we try to reiterate in our reviews of forex brokers, and binary option providers, dealing with unregulated companies is always risky, as they may simply refuse to pay you back, regardless of your trading results. Traditionally financial regulatory agencies, like the UK’s FCA have taken the task of providing a fair environment for clients, but SPECTRE offers a different solution.

 

Standard disclaimer: US citizens aren’t allowed to trade on this platform, nor trade the tokens. 

 

This is a general presentation of the project. For a trader’s perspective on the current functionality provided check out this review.

 

What is SPECTRE.ai? 

 

SPECTRE is a binary options, forex and CFD trading platform, build upon the Ethereum Network. This means all transactions will occur on the blockchain and be settled there. One’s account will actually be an escrow Ethereum wallet, instead of a USD or EUR balance with a company. 

 

Currently, only the binary options platform is operational, but spot trading, will hopefully come soon. The key difference between SPECTRE and traditional brokers is the fact … there is no broker involved.

 

How it works?

 

All trading on this platform is done via Etherum Smart Contracts. They are “immutable”, which means they can’t be altered once created (i.e. no pesky broker will create artificial price spikes, to make you lose). Traders can be matched against each other on the platform, but the bulk of the activity will be done against the decentralized liquidity pool.

 

This is the genius part of blockchain technology altogether – the creation of a “trust-less” environment. The liquidity pool at SPECTRE acts as “the broker” in some respects. It will handle most of the trading activity, take the client’s risk and pay out the winnings. The key selling point is the fact this isn’t governed by anything else than the code in place. In essence “the house” is fully automized and transparent. 

 

The same also goes for the key point which this project tries to address, withdrawals. Whenever you want to send your Ether form this platform to another wallet, this will happen thanks to the Smart Contracts in place. There no need for somebody to approve (and potentially deny) it. 

 

How does SPECTRE.ai profit?

 

There are two main streams of income for the people behind SPECTRE and investors. When it comes to the option trading, which is the only form available at the time of writing, the model is quite simple.

 

-2% of the value of every trade, regardless of the result, is given directly to the management team (the creators of SPECTRE);

-2% is is also distributed among token holders (more on them below);

-In case a trader profits on a given option, the liquidity pool will suffer the loss. If he happens to be wrong, the pool gains the remaining 96% or the option’s value. 

 

This means the pool itself may be “in the green” and if that is the case after a year, 30% of the earnings will be paid to the SPECTRE team and 70% will be shared with token holders. That being said, it wouldn’t be accurate to say there is absolutely no conflict of interest, but it would be reduced to a minimum, as the people running the project can’t influence the trading platform. 

 

In case you want to invest

 

This entire project was funded via an ICO – a process by which people gather capital, in exchange for issuing a token. This is very different from a company going public (via an IPO), as the token does not represent actual ownership of the company or idea, but something else. 

 

In the case of SPECTRE there are two tokens, SXUT and SXDT. The former will provide with traders with lower fees or higher percentage payouts (for options), as well as other benefits, like a trading academy.

 

An example of the difference in payouts for EUR/USD trading with and without SXUT

 

On the other hand, SXDT will pay dividends periodically, based on the profits generated by the project. This will happen on a weekly and annual basis (for the different revenue streams) and be done in ETH. Both of them are currently traded on EtherDelta, ForkDelta, IDEX and Crex24 (with SXUT being also available on Bibox). Of course, you will need to get involved with Etherum before you can access these exchanges.

 

>>New to Etherum, check our guide<<

 

We will not comment on the viability of either token as an investment, as we usually do. That being said, we would suggest SPECTRE’s YouTube profile as a starting point for your research, if you are interested – the company periodically posts conference calls with investors, just like publicly traded ones do.

 

Conclusion

 

SPECTRE is a bold endeavor aiming to disrupt the forex industry. The key risks ahead of them will be the acquiring new clients (given the Etherum only environment) and possibly some legal concerns, which they are aiming to prevent – the company is doing research in the licenses it can currently apply for, with the FCA, being the end goal. If you are a HODL investor and want to have Ether for the rest of time, SPECTRE can provide a simple way to trade traditional financial markets occasionally. Will they succeed in taking a huge portion of the existing forex broker’s clientele? Only time will tell.

 

TAGS: spectre  spectre.ai  ethereum  forex  binary options 
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US CFTC, NFA MT4, Web,
in-house
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Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
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UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
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Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT4, Web, MT4
for Mac
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