Current Market Pain Points
NASDEX is designed to address the many pain points that exist today in the crypto and equity markets. As you can see below, there are multiple inefficiencies in these markets individually. However, when combined, NASDEX will enable the creation of a much better asset class by harnessing the benefits of both crypto and equities.
Crypto market pain points:
- General public is still unfamiliar with the crypto asset class
- Excessive volatility
- Lack of investment options into real world companies and assets
Equity market pain points:
- Lack of access for many in the world with stringent KYC
- Extremely low yield to zero yield for most traditional equities
- Lack of 24/7 trading
- Lack of fractional trading
NASDEX will solve the above pain points by tokenizing equities and bringing the traditional assets onchain. This will expand users access to a 100 trillion dollar market while benefiting from blockchain technology. Specificity, individual crypto market pain points will be solved via:
- The general public is a lot more familiar with equities than crypto; therefore introducing tokenized equities to the public will be a easier onramp experience on to the blockchain than potentially investing directly in crypto assets
- The excessive volatility of a crypto portfolio is mitigated through the ownership of tokenized equities as part of that portfolio. Generally equity volatility is lower than crypto volatility.
- Crypto market's total market cap is only around 2 trillion USD and consists of almost all crypto assets. However, once tokenized equities are on the blockchain, crypto investors have access to potentially a 100 trillion USD market with investment targets include real world companies and household names
And the equity market pain points will be solved via:
- Many users in the world, especially in the non-developed markets, have tremendous difficulties with accessing quality investments because of capital control restrictions, KYC restrictions, and geographical barriers. However, with NASDEX, once stocks are tokenized and onchain, access to these assets become global and permission-less.
- Due to the decades of quantitative easing, actual yields in the traditional asset classes are essentially zero. On NASDEX, we are offering our users the ability to hold traditional assets via tokenized equity but also with DeFi-like yields through LP staking and farming which will fix the low yield problem of traditional equity.
- Equity markets are inconvenient for non-local investors due to the trading hour differences. On NASDEX, we offer 24/7 trading for tokenized equities.
- There is usually minimum lot requirements for the purchase of traditional equities, while in other cases individual stock prices may be prohibitively expensive for some users in the world. By tokenizing equities, NASDEX offer users the ability to buy a fraction of the tokenized equities thus improving access for all.
And finally by holding equities and crypto both on blockchain, our users can seamlessly rebalance and transfer between the two asset classes without the worry of the need to convert to fiat, and the long and expensive transfer process. .