Blockchain-based derivatives trading platform CloseCross is switching to Polygon from Ethereum as it continues to expand the business.
By switching to Polygon, a protocol and framework for building and connecting Ethereum-compatible blockchain networks, the MIFID licensed platform is able to reduce costs for users by up to 95 per cent in on-chain transactions and to cut the time taken for transactions to be accepted and recorded in the ledger. The move will also enable CloseCross to expand capacity and offer trading on more assets.
The success of the trading platform, the world’s first enabling traders to generate returns based on asset price predictions in any direction over any period of time including predicting price stability, has meant the switch to Polygon has been accelerated.
The Ethereum blockchain has suffered from issues with capacity, congestions hitting lower value transactions and high fees while Polygon addresses its major limitations including throughput and poor user experience including delayed transactions. Polygon is designed to be a platform for launching interoperable blockchains.
Vaibhav Kadikar, Founder and CEO of CloseCross, says: “CloseCross is focused on providing a level playing field for traders and unprecedented transparency which made the decision to move to Polygon from Ethereum relatively straightforward.
“We can expand our services for our growing number of traders while also reducing costs and improving the experience for all users.”
CloseCross removes the need to deal with central issuers of derivatives or CFDs and allows hundreds of traders to enter a common smart contract instead of hundreds of individual traditional derivative contracts with a centralised derivatives contracts issuer. Traders can participate with as little as USD1 and trade using multiparty derivatives to forecast movements on forex, crypto, stocks, commodities, and stock market indices worldwide.
CloseCross is regulated under MIFID II rules offering increased protection and transparency for customers. Unlike other trading platforms, there are no participation fees for using CloseCross, and its patented multiparty model ensures that leverage is not needed to achieve potentially outsized returns.
Money placed on incorrect predictions is lost, but you never lose more than what you put in as there is no leverage needed or possible on the platform. Users pay facilitation fees, only on their winning trades, giving them significant savings when compared to traditional trading platforms. The platform also provides real-time data on the predictions of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.
