Listing of XCR
As always, thank you for your continued support.
First of all, we regret to inform you the listing of XCR has been revised to the first half of 2021.
The main reason is that almost all commercial activities and public institutions have been suspended due to the effects of the coronavirus and the conflict between Azerbaijan, where CROSS is headquartered, and neighboring Armenia.
In addition, overseas travel for team members of each project has been restricted for the past year, where offline activities are not possible, impeding progress of the project.
We take this decision very seriously as a disappointment to all the token holders who have held high expectations and are patiently waiting.
However, this year there were restrictions on business activities and daily activities beyond imagination, and CROSS was unable to devote energy to external activities, especially exchanges with foreign countries as we could not achieve desired results.
Just as token holders want the token to be listed and take profits at an increased price of XCR, CROSS management feels the same, so we hope that you will keep an eye on the process up to its listing.
We will discuss CROSS activity history, direction, and strategy below.
XCR Token Strategy for the CROSS Project
In the case of general ICO tokens, we are trying to increase liquidity after listing, but we have a plan for XCR* from the beginning to increase liquidity for commercial use.
Reason for advancing the project under this strategy for XCR?
If we proceed currently with listing and the XCR token price subsequently drops, then evaluations made for investors and services affiliated with CROSS will be inadequate. We have determined this will likely result in the business not succeeding.
*XEX at CROSS exchange is an example used in how we arrived at our decision
As the XEX price fell, the volume of CROSS exchange decreased, dragging down user's morale for XEX, which had a negative impact on overall business performance.
In order to increase the value of XEX going forward, it is necessary to proceed with the collection of XEX in the market, adjust its circulating supply, create an environment where XEX circulated is easily controllable, and rebuild the basis of the XCR listing.
CROSS exchange management continuously conducts the collection of XEX from the market. By reducing the XEX distribution supply to a controllable amount and thereby putting upwards pressure on the XEX price, it will have a positive impact on the XCR price.
However, due to the postponement of listing, some investors of XCR have requested for a sales offer or cash out option of XCR before listing. We will take the voice of investors seriously and respond to that inquiry. However, we currently would like to promote tokenization for actual use as planned from the beginning and securing liquidity of XCR.
*XCR is a utility token issued by CROSS. The CROSS project and CROSS exchange are operated by C BASE Fintech Lab LLC, and other services affiliated with CROSS are operated by a company other than C BASE Fintech Lab LLC. CROSS has a tie-up with each service by providing blockchain technology and nodes.
*XEX is a mining token issued by CROSS exchange, and is a different token from XCR issued by CROSS.
Strategy until Listing
As CROSS exchange makes XCR its exchange-based token in the future, C BASE Fintech Lab LLC, the CROSS operating company, will be the newly launched cryptocurrency exchange supporting the CROSS project.
Initially, the strategy was to list XCR after an IEO using XEX at CROSS exchange along with the alliance of ONE CARD.
The business plan and reason for establishing such a strategy is based on the estimation that if the increase in CROSS exchange trading volume and the rise in XEX price can exceed the expectations of the market, it will positively affect the price and liquidity of XCR.
This business plan has not changed and CROSS exchange has made it easier to control XEX circulating supply by proceeding with XEX collection in the market, as described in the "XCR Token Strategy for the CROSS Project". We will continue to rebuild the foundation of the XCR listing.
While implementing such policies, it is necessary to incorporate new functions to improve CROSS exchange volume and service higher trade volume at the same time.
Since the CROSS exchange system is based on trade mining, there are some technical problems to be solved in incorporating new functions into CROSS exchange. The CROSS project will be providing multiple technologies for this.
After resolving these issues, CROSS exchange is preparing for a full makeover during the first half of 2021.
The announcement for the start of services will be made on the remade site with the announcement to come out simultaneously.
In line with the complete makeover of CROSS exchange, we will implement some utility functions of XCR. This will make XCR act as a governance token in a decentralized financial platform.
Governance tokens have the role of making various decisions regarding service content on a decentralized financial platform, such as changing commission rates.
By increasing the liquidity of XCR for commercial use, we believe that it will be possible to reduce the liquidity within the exchange after listing, which will lead to price stabilization.
CROSS exchange will be Reborn as Hy DeFi (Decentralized Digital Asset Finance) Platform
As mentioned above, CROSS exchange has several problems to be solved on the system.
CROSS exchange's board trading system is specially designed for trade mining, and in order for CROSS exchange to evolve into Hy DeFi (Decentralized Digital Asset Finance) platform in the future, it is necessary to make major system updates.
The major difference between Hy DeFi and DeFi using smart contracts is there is a centralized party managing the system.
The great thing about DeFi using smart contracts is that the system works without an administrator, but if a bug occurs, the administrator will eventually have to fix it.
As a result, there is no big difference between Hy DeFi and DeFi, and I think that Hy DeFi is more reliable and safer in terms of operations.
Hy DeFi is a cross-border digital asset finance service using cryptocurrencies and digital assets.
Until now, CROSS exchange has been an exchange centered on spot trading, but by evolving into a Hy DeFi (hybrid decentralized digital asset finance) platform, commission income and investment profits other than board trading can be generated.
2020 was a very difficult business environment for any industry in the world, but as CROSS exchange, even in the event of a global recession like 2020, decentralized digital asset finance will work to stabilize the economy. We would like to play a part in creating a society that will be transformed.
We hope you look forward to the new CROSS exchange.
XCR Aims to Increase and Stabilize Value by Controlling Distributed Supply and Interest Rates
The biggest difference between legal tender and crypto assets is central banks control interest rates and issue new currency supply. In the case of cryptocurrencies, the amount (supply) of currency can be incinerated or divided to control the circulating supply.
Even with BTC where no central administrator exists, currency division (forking) via hardforks (chain splitting) is performed many times. A popular example is BCH hardforking off BTC.
XCR will be used as a function of controlling the supply, and XCR will be burned based on the amount of transactions occurring on the XCR chain. It has a built-in mechanism to increase the supply of currencies that distribute XCR by mining it through staking.
With this deflation and inflation mechanism, supply balance can be established.
As part of this, CROSS will aim to enable and collaborate with various services to build a DeFi environment with an administrator at the initial stage and verify the role of tokens for its services, while operating tokens through execution of smart contracts on the XCR chain.
Mechanism for Balancing the Circulating Supply of XCR
During the initial stage of listing, we will cooperate with services to reduce the supply amount for the purpose of measuring the decentralization of selling pressure.
With the makeover of CROSS exchange in the first half of 2021, the alliance is underway with the intention of incorporating a crypto asset Lending Service within the new crypto asset trading platform.
What is crypto asset lending? Specifically, by lending crypto assets, lenders can receive interest (lending fees) from users. Thus, it will now be possible to generate interest income with crypto assets.
XCR will act as a governance token for crypto asset lending services, and staking XCR will provide an increase in interest rates and other incentives.
Incorporating this functionality of XCR into the service will have the intended effect of increased use of tokens and reduced circulating token supply.
Details of the crypto asset lending service will be announced when the new platform is introduced, along with a CROSS announcement.
In addition, ongoing discussions are being held between candidate exchanges regarding the listing of XCR other than CROSS exchange and exchanges in multiple countries, including South Korea, where RMT KOREA is based.
Distribution Status of XCR to Date and Future Issuance Plan
The supply will be determined through mining (staking, trade mining), etc., and we will shift to a structure that is more decentralized.
The start time of XCR chain mining will be decided according to the progress of the alliance with the affiliated services that help introduce the XCR chain.
The state from the time of initial issuance of XCR is summarized below.
As shown in the figure below, XCR supply and price will adjust based on activity.
To Make 2021 the Year where XCR Shines
As CROSS management, we will take seriously any criticisms regarding the strategy and execution of the CROSS project and will work to improve it.
Since XCR is unlisted with its value currently collateralized, it is possible to build a mechanism regardless of the market price and take advantage by listing it in its most optimal state. We will also update the system and services while modifying the roadmap for listing.
The crypto market is changing rapidly, and the current trend of crypto asset exchanges is simply not based on trade volume, but also digital asset lending services (Lending/Borrowing services), leverage trading of major coins, and decentralized financial trading (Defi), exhibiting a tendency for the necessity to increase various options for the benefit of users.
We believe 2021 will be the year of XCR by accurately seizing the opportunity to change the market and appealing to users.
Thank you for your continued support.