The E-Trade Of Bitcoin is aiming San Francisco Open Exchange (SFOX)
What is SFOX? Read on to know more about the revolutionary exchange.
How Has The SFOX Developed?
An online trading platform helping people find the best Bitcoin prices at various exchanges is the Y Combinator-backed startup San Francisco Open Exchange where it would like to help you buy, sell and invest in Bitcoin exchanges kinda like as investors buy and sell stock on E-Trade.
As the co-founder Akbar Thobhani has left his job at Airbnb, creating this platform he soon found that using Bitcoin was even more expensive than using credit cards because there’s not a lot of transparency as he started thinking that if he could find a way to compare prices, it would help drive widespread adoption for the Bitcoin market.
While there are similar systems that directly buy and sell, CampBX based in Atlanta is one among many hundreds of exchanges out there allowing buying and selling. Thobhani says CampBX is a different business as its just one exchange on a closed system with the goal being simple that is to find the customers the best price for the Bitcoin, for this, they work with multiple exchanges using algorithms to route the transactions as he explains.
Why Is SFOX Being Counted As A Major Player?
SFOX doesn’t allow you to buy or sell Bitcoin directly which is the key thing to understand like CampBX or other exchanges. It is rather a platform facilitating to find the best price on these exchanges where prices can vary widely depending on the exchange used. As one Bitcoin could be $ 508.58 on Coinbase but $ 507.90 on Coindesk or $ 508.50 on Bitstamp.
Along with these, there’s also the btcReport app for iOS, as the app merely shares information about different prices on different exchanges allowing someone to buy or sell Bitcoin. SFOX as a result of these is unique in the market finding prices on different exchanges and then like a stock exchange platform facilitating the trade allowing you to use standard equity trading features like limit orders as someone might find on a platform like E-Trade or Charles Schwabb.
SFOX attempts to solve the location of where the exchanges exist as according to SFOX, 90 percent of all Bitcoin trades are done in the US. the most popular exchanges are however like those of Bitstamp and BTC-e base outside of the US where the problem in some exchanges has failed to adhere to US currency regulations. One such exchange was the now infamous Mt.Gox that has faced this very issue.
The History Behind The Success Of SFOX.
When the US Department of Homeland Security had issued a warrant to seize money from Mt.Gox’s US subsidiary account with payment processor Dwolla, this Tokyo based exchange was at one point handling 70 percent of all Bitcoin transactions announcing around 850,000 bitcoins gone missing and were likely stolen. When these amount of missing bitcoins were valued at more than $ 450 million at the time, Mt.Gox failed to register in the US as a money transmitting company which is a requirement for US money services and Dwolla with no choice but to comply with handling over the money. This is then why SFOX based in the Bay area claims to be in line with US regulations.
At the YC Demo Day, Thobhani and his cofounder George Melika were pretty well received as asked around to a few investors during the breaks as to which company they were most impresses with as many of them mentioned SFOX, as the company is now in several talks with potential investors. While discussing he was hinting at possibly adding other cryptocurrencies such as the dogecoin and Litecoin, to the platform, Thobhani says SFOX could go international at some point. Right now trading in SFOX is currently by invitation only.
The Final Thoughts On SFOX
While SFOX is here to stay, there are many speculative of success. This brings major interest to the spectrum where SFOX throws light to. There is however more investors watching the game as they are all very well defined to get the ball in action. Bitcoin exchanges have never before been scrutinized as that of SFOX meaning it will play a major role in becoming the best-invested exchange. The scenario playing host to these exchanges are either being tested as only time can say if they will run to be successful or a disaster like that of Mt.Gox. So stay tuned to watch more of the game on stage and help it is the best amongst the contemporaries.