ShapeShift has decided to launch FOX as an in-house crypto token, in an attempt to double its efforts of decentralizing the cryptocurrency trading.
Similar to Binance’s BNB, FOX was released on Wednesday and enabled the cryptocurrency trading without any commission.
Users of the platform who decide to sign up are automatically given 100 FOX tokens that never expire and offer them the opportunity to trade the value of $10 of free trading volume for each token, in a period of 30 days.
ShapeShift CEO and Founder Says FOX Was in Discussion since 2017
Erik Voorhees, the founder and CEO of ShapeShift has said in an interview that the company was thinking about releasing a token since 2017. Over the last 2 years, the concept evolved into what it is today. He said,
“We've obviously been thinking about doing a token ever since 2017 and we wanted to wade into it very slowly and carefully,”
“We've been kind of evolving our concept of what our coin is going to be over the last two and a half years.”
FOX to Eliminate Custodial Exchanges
FOX is just like the exchange tokens Bithumb Coin (BN) and Binance Coin. While it’s still in the category of utility tokens, its purpose is quite limited for now.
“This has nothing to do with establishing a new chain,”
“Basically, we're trying to get people away from custodial exchanges. This is an endemic problem in the crypto world that was a problem in 2011 when I first got involved and it’s still a problem. So, we realized that to solve that we had to provide all that stuff in one place.”
The new token is different because it’s not facilitating transfers happening between exchange products but attracts users towards a liquidity self-custodial exchange.
For Now, FOX is Functioning as a Digital Coupon
While FOX is now more of a digital coupon, Voorhees says in the future it will be more functional and that the exchange has minted 1 billion tokens in an attempt to help people move from custodians and adopt the non-custodial model.
The launch of FOX comes after ShapeShift has released its new platform in July, a platform that Voorhees thinks provides an answer for the market’s need to no longer rely on custodial exchanges like Coinbase.
ShapeShift’s Aim is to Implement Self-Sovereign Finance
In a blog post that he published on Wednesday, Voorhees stated,
“ShapeShift’s goal, is to make self-custody a seamless and enjoyable experience, because this will help the world move toward self-sovereign finance, and away from fiat.”
He added the exchange’s liquidity is higher when compared to the one of other self-custody options like swap services or decentralized exchanges (DEXs).
According to what he says, the total trade volume went down ever since KYC has been implemented, but the liquidity went up by 10x on BTC/ETH, the exchange’s main pair, in the same time period. He explained how ShapeShift always has the role of counterparty in trades, which means it provides liquidity in the increments is comfortable with.
The Crypto World May Head Towards a Non-Custodial Future
When it comes to why non-custodial exchanges are better, this is because they provide more security and are anonymous to a higher degree.
They don’t require users to have accounts in order to trade, which means they’re ideal for rapid trades and those who don’t want to give their personal details to the exchange.