Hundreds of Initial Coin Offerings have been launched in the year of 2017, but only a few come close to having the power to change the world of finance in the way that Enigma Catalyst will. Enigma Catalyst’s presale campaign is set to launch from August 21st, 2017 to August 31st. The primary ICO will last from September 11th to September 21st. We’re here to tell you everything about Enigma Catalyst and explain why everyone from large financial institutions and hedge funds to small retail traders should take an interest. Enigma Catalyst is set to change the cryptocurrency investment world for the better. Here’s how.
What Is Enigma Catalyst?
Enigma Catalyst will exist as an open platform wherein traders, programmers, and data scientists can build, deploy, test, and even monetize their own trading algorithms inside a decentralized cryptocurrency exchange.
Users and traders will then be able to subscribe to a specific trader or algorithm they believe can earn them real money in the crypto markets.
Although Enigma Catalyst isn’t the first decentralized investment-based platform, (Melonport or ICONOMI come to mind), Catalyst stands out by offering much more than just basic investment options.
Enigma Catalyst’s ecosystem will be made up of two main functions: A decentralized token exchange (Enigma) and an open source SDK platform (Catalyst) for data scientists.
The marketplace is addressed as Enigma while the application running the protocol is referred to as the Catalyst.
All information, including proprietary data sets, trading algorithms, personal information, and order books will be stored inside a distributed database utilizing a modified Kademila DHT protocol. This type of data storage protocol is the very same method employed by BitTorrent.
The Enigma Exchange
Enigma Catalyst’s decentralized exchange is based off the models employed by Bitcoin’s Lightning Network and Ethereum’s yet to be released Raiden Network. What separates Enigma’s exchange from the already existing blockchain technology is Enigma’s ability to enable decentralized order matching.
In the past, decentralized financial exchanges were forced to cope with low liquidity and less people using the exchange. They also face intense competition from well-established, centralized exchanges who are able to take advantage.
Enigma Catalyst solves these problems by giving liquidity providers the ability to function as independent (yet still connected) token exchanges who manage their own order books. Liquidity providers would be compensated by earning a percentage of daily trading fees as payment for their services to the Enigma network.
Enigma Catalyst anticipates that their sophisticated trading algorithm marketplace will be enough to attract users and traders, while rewards in the form of tokens will incentivize market makers and liquidity providers to join the network.
Tools for Developers and Data Scientists
Data scientists will be given a range of API tools to create and test their trading algorithms within the Enigma exchange. The software development kit is based off of Zipline, though the company does plan on rebuilding the Zipline base to be more adaptable to cryptocurrencies. There are also plans from Enigma Catalyst to develop a web browser IDE using an altered notebook interface.
Filling the Gaps
There are two primary voids the team behind Enigma Catalyst are trying to fill.
The first is addressing the small number of trading tools and solutions designed specifically for the cryptocurrency market. Secondly, as more and more people realize the investment potential in cryptocurrencies, the amount of people wanting to invest in experienced high-quality crypto traders increases.
The type of people who will benefit the most from the Enigma Catalyst platform are cryptocurrency investors, quantitative traders, and data curators. Data curators will act as the source of information for traders, quantitative investors will be able to create their very own hedge funds, and crypto investors will put money into their favorite profitable hedge funds and algorithms.
How Does the Catalyst Token Work?
Enigma Catalyst’s ecosystem will be fueled solely by the Catalyst Token (ECAT), which will act as the only means of payment between users. You will also only be able to access the Enigma network with Catalyst Tokens. The way you use your Catalyst Tokens depends on your role within the network.
- Algorithm Developers – There are two ways for developers to monetize their data-driven trading strategies. First off, they can participate in periodic trading competitions where developers will put their strategies up against other algorithms, wherein those who have high performing strategies are compensated in ECAT. Developers must also pay a ECAT fee to list their algorithm onto the exchange where they can attract clients and earn performance and management fees.
- Data Curators – Data curators can create, license, and sell their proprietary data sets to other users inside the exchange.
- Service Providers – Service providers act as nodes. These nodes perform services that help the network run smoothly. Servicers can include liquidity providers, those who provide computational power or storage space, and anyone else who contributes to the service to the network is rewarded in tokens.
- Investors – Investors of all sizes are able to access a sophisticated crypto trading market made up of a wide range of trading strategies.
Enigma Catalyst ICO
Enigma Catalyst’s main crowdfunding sale begins on September 11th. Their funding target cap is $30 million with a presale cap of $20 million and total token supply of 100 million.
The amount of tokens being distributed in the ICO is 50 million coins. Since Enigma Catalyst operates on the Ethereum blockchain, the company will only be accepting BTC and ETH as payment methods.
Tokens and funds will be distributed as follows: 60% will go towards development, 15% will be used for research, 10% to marketing, 10% towards operations, and 5% to legal fees.
Still not sure if investing in this ICO is right for you? Consider the following pros and cons of investing in Enigma Catalyst’s ICO.
Advantages
- Strong team of founders. Composed primarily of MIT graduates, experienced software engineers, and quantitative traders.
- The Catalyst trading platform is currently available in an alpha version for anyone who wants a test run.
- Enigma Catalyst is backed by big names like Digital Currency Group, MIT, and Heroic Ventures. They also have advisory board members like Professor Alex Pentland, who is also a board member at Google and Telefonica.
- The cryptocurrency industry is in desperate need for solutions and products like the ones Enigma is offering.
Disadvantages
- Enigma must compete with semi-established competitors like Melonport and ICONOMI.
- Minimum invest size is $60.
