A Deep Dive Into: HXRO

Everything You Need to Know About Hxro In Under 5 Minutes

What is HXRO?

HXRO is a “player-versus-player” cryptocurrency exchange and gaming platform that is built around skill-based social gaming. As part of their mission to make trading open and accessible (and even fun), HXRO combines aspects of financial markets with a social gaming twist, providing an innovative new way to trade cryptocurrency assets.

In a nutshell, HXRO has a game-based format that pits players against one another in timed competition, with HXRO tokens (more on this in a bit). Think of it as a gamified crypto trading experience where investors can express their judgements about price, tradings, and hedge risk.

What Problems Are They Solving?

Complexity Of Crypto Trading

For many people, getting into crypto trading is overwhelmingly confusing. Selecting from over 4,000 cryptocurrencies, learning about wallets and safety, figuring out how to use an exchange all while weathering the storm of market volatility is a lot to take in for a newcomer.

While HXRO is not a replacement for properly learning the ins and outs of crypto, it is an alternative to conventional trading. That alternative is aimed at investors sitting on the sidelines who are put off by the currently convoluted and unintuitive crypto trading experience.

Issues With Decentralized Options Trading Platforms

Platforms like DeRibit have seen exponential growth, with a staggering volume of over $2b of BTC options per day.

While decentralized options platforms exist, many have run into issues including high trading fees, scaling issues, lack of on-chain order books, and liquidity issues.

How Does HXRO Solve Them?

This gamification aspect of the platform is meant to “soften some of the sharp edges” that crypto derivative exchanges are notorious for.

The core tech of the platform is their parimutuel betting technology coupled with standardized time frames. Users can put up tokens for stake and the system will put all tokens into a liquidity pool. The peer-to-peer nature of the system means that it is transparent and provably fair for all users.

“As professional traders, we want to create a platform that mimics the high energy experience in the world’s largest derivatives exchanges”

Rob Levy, President and Co-Founder of Hxro.

Market Protocols: Vanilla, Exotic & Parimutuel

There are currently 3 market protocol types that Hxro uses to facilitate the platform.

Vanilla Options – Standardised, Cash-Settled European call and put options. These are options that you most commonly see on a traditional options exchange.

Exotic Options – Non-standard options that vary in their payoff structure, exercise terms and other contract components. Examples of exotics are 1-touch, Knock-Out, Barrier, Range and Bermudian options.

Parimutuel markets – Peer to peer, dual-outcome event markets where all positions are pooled together with the in-the-money (or winning) side sharing the pool pro-rata. Parimutuel markets help solve the liquidity consistency problem faced by other platforms.

Fun Fact: Parimutuel-style wagering is most commonly used in horse racing. 

Smart Automated Market Makers (SAMM)

As mentioned above, liquidity issues weigh down the success of decentralized options trading platforms. SAMMs help to provide on-chain liquidity to parimutuel markets, while keeping fees low for users.

Game #1: Moonrekt

MoonRekt is a perpetual chain of time-based digital options with a parimutuel payoff mechanism. It is peer-to-peer and does not require market makers/takers or interacting with traditional bid-ask order books.

The game basically lets you bet on market movements using the HXRO token as a stake. You decide which side of the bet you want to be on. The entire point of the game is to pick whether the candle chart for BTC will be higher or lower than the previous candle.

Moonrekt allows you to select between MOON or REKT, which bets on the price going up or down respectively.

Each time-based game contains a different pool. The winning side of each pool then splits the winnings, depending on how much each individual’s stake was. The more you put in, the more you can get back.

These games are always running continuously too, over five-minute intervals. The settlement price for one card becomes the strike price for the next card.

Total rewards depend on the overall sentiments of other users and can be as small as a 1.1x ratio or up to a 10x ratio. Part of the skill of the game involves being able to read the sentiment of other players and identify underlying trends in price movements.

Game #2: Tixwix

TixWix is the newer of the two platforms and was developed in a joint venture by Hxro and FTX. Like MoonRekt, TixWix lets traders wager on price movements.

Simply select a coin and a date that you expect its price to hit a certain level. Get it right and you win.

TixWix was added earlier this year in an effort to bring more products and services to the platform.

Many people might just think that this is gambling with cryptocurrency, and that is a fair assumption to make. However, it’s not all luck — there is a large skill component involved. It’s worth noting that the risk for each game is fixed and you can only lose whatever your initial wager is.

The Token

Hxro currently has some other gaming projects in the works, but there is no reliable concrete details on those projects as of yet.

HXRO uses HXRO tokens, powered by the Solana architecture. The creators chose Solana as the underlying architecture due to its lightning-quick performance. The platform recently HXRO is an “app-token,” meaning that its only use is on the HXRO platform. These tokens are used for gaining entry to games and making purchases on the platform.

Other use-cases for the token include:

  • Governance
  • Reduced transaction fee payments
  • Volume tier-incentive rebate rewards
  • Staking Rewards
  • Builder Rewards

Winners also get payouts from their games in HXRO tokens. One of the major reasons HXRO incorporated Solana onto their platform is due to the high fees of Ethereum, which can cause problems.

Hxro introduced Solana onto their platform back in February, but the platform still runs as an ERC-20 as well. The Hxro coin has a fixed amount and the team has plans to slowly unlock more of the coin as the years go on.

Hxro’s Core Team

Currently, the Hxro core team includes personnel with a strong background in the financial, trading and cryptocurrency space. Here are a select few.

  • Dan Gunsberg – Co-Founder of Hxro, Co-Founder at Gordian Block Capital, and CEO at DV Trading.
  • Rob Levy – Co-Founder & President of Hxro, Co-Founder at Gordian Block Capital, and former trader for DV Trading, DRW, and Group One.
  • Lawrence Richardson II – Co-Founder of Hxro and ZeroSum gaming, former trader and analyst for Citigroup.
  • Kevin Steele – Quality Assurance Lead at Hxro, Director of Growth at Latium, and former Brand Ambassador Director at Blox.io
  • Daniel Taylor – Director Of Operations, and professional cryptocurrency trader.

Investors & Partners

  1. Gordian Capital – an investment and trading firm based in Chicago.

Funding Rounds

Seed Sale$500,000
Pre Sale$250,000

The project received $500,000 in mid-2018, through a seed round led by investment fund Gordian Block. It also raised 250,000 in a pre-sale in late November 2018 with a token price of $0.2.

Token Release & Distribution

HXRO initial supply was set at 1.575 billion tokens, with 325 million tokens locked by smart contracts. These tokens along with an additional 250 million were later burned reducing the total supply to 1 billion which are distributed as follows.

Founder Angel Tokens376,132,153
Seed Investor Tokens97,000,000
Advisor Tokens*23,100,000

*23.1 million Seed investor and Advisor tokens are locked in the Hxro treasury wallet until June 2021 and will be released in 8 quarterly distributions thereafter. Founder/Angel tokens are locked in the HXRO Treasury wallet until June 2023.

At the time of writing, 52% of the total volume of the count is yet to be unlocked and will be integrated over a several-year process after being dropped. Hxro has a maximum supply of 1 billion tokens.

Source: Messari

Roadmap

  • Platform Beta
  • Minimum Viable Product
  • Bitcoin Integration
  • Lightning Wallet Integration
  • Hxro API Developer Hub
  • Hxro 2,0
  • Liquidity Producer Pool

Competition

  • FinNexus. A decentralized options trading platform allowing users to speculate on BTC, ETH, LINK, SNX, and MKR options on the Ethereum & Wanchain networks.
  • Oiler Network. A decentralized options trading platform that allows you to engage with binary and exotic on-chain options e.g. Ethereum gas prices.
  • Deribit. A centralized options trading platform focusing on cryptocurrency and blockchain assets.
  • Ledger X. Another popular centralized options trading platform that offers BTC spot, options and futures contracts.

Wrapping Up

Hxro has a lot of things going for it. The gamified approach to crypto trading is innovative and takes advantage of the Solana blockchain and Ethereum blockchain technologies by allowing a 24/7 slew of transactions.

Hxro aims to make crypto trading more fun and accessible by repackaging the classic options ‘call’ and put’ system into an attractive and intuitive platform. The platform provides a new and exciting way for users to express their views on prices, hedges, and risk.

Hxro is currently on its V2 platform which has spurned a lot of growth. The original platform was launched back in 2019 with just MoonRekt as the only available game.

Unfortunately, access to Hxro’s games is currently restricted based on geographic region. Players in the US and Quebec cannot participate in the games.

As always, do your own research before buying into highly speculative assets such as cryptocurrencies.
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