In the field of cryptocurrencies, every single cryptocurrency seeks to solve a particular problem. Some seek to take advantage of the loopholes of other cryptocurrencies while others are created specifically as a solution to a particular problem. It is no news that cryptocurrencies provide a safe, private, secure and anonymous way of performing online transactions in a bid to solve especially financial, and other problems.
An example of such is the Catalyst, created by the MIT-bred company known as Enigma. With its aim of creating an open, secured and decentralized marketplace that seeks to change the manner in which data is shared and monetized in order to maximize collaboration, Enigma created the Catalyst. Powered by Enigma’s financial marketplace, Catalyst is a data-driven crypto investment platform that helps users share data and build sound data-driven investment strategies. The Enigma Catalyst seeks to provide a platform where average investors can purchase trading strategies which are in line with their investment goals. This means that developers can use the Enigma Catalyst create trading robots as well as crypto funds which other users can purchase through and open marketplace
With the rise of cryptocurrency and the increasing popularity of hedge funds in recent years, Enigma discovered the need for algorithmic crypto-asset trading which eventually presented an opportunity for the Catalyst which facilitates the development of such algorithms. The most valuable asset in the world today is data. The operation and revenue of a number of large companies rely on the analysis and consumption of data. However, it has been monopolized by these companies causing data access and consumption to be heavily restricted. The Enigma decentralized market place provides a platform where curators of data – especially financial data, can be matched with data consumers such as traders and investors.
Like has been discussed above, Enigma seeks to create a platform where people can have access to valuable information which they can use to create crypto-hedge funds and strategies which investors can invest in. Thus, the Enigma Catalyst project has three main stakeholders. These are data curators who will use the platform to provide data consumers such as investors and traders with premium data sources, traders who can use the platform to create their own crypto-hedge funds and investors who can invest their funds in the most financially attractive and successful hedge funds found on the platform.
Any ecosystem such as Enigma’s needs a currency which can be used to carry out transactions easily. That currency is the ENG which is the main currency of the ecosystem. With its Initial Coin Offering slated for the 11th of September 2017, this currency will be used in a variety of ways. These are outlined below
- The ENG token will be used as a means of remuneration for Enigma Catalyst’s most successful traders.
- Also, it will be used as the medium of payment for premium data sources which will help in trading by providing high-quality data.
- Investors will also have to use ENG tokens to invest in crypto-hedge funds. It is not yet certain how much of the tokens will be required for investment.
- When Enigma will finally introduce its own decentralized exchange, these tokens will also be used to reward liquidity providers
In order for quants to be successful on the Enigma Catalyst platform, they will have to purchase ENG tokens. Also, tokens will be used as rewards for quants with successful strategies.
The Enigma Catalyst Initial Coin Offering is scheduled to take place on September 11, 2017. The Enigma Catalyst token has a fixed supply of 150 million ENG tokens. During the ICO, 50% of the ENG tokens will be made available, 25% will be used as incentives to the Catalyst community while 25% will be retained by Enigma. With a token price of 1 ENG = 0.6$, the target cap for the crowdsale is estimated to be $45million. It should be noted that the ENG is an ERC20 token which means it is compatible only with ERC20 Standard wallets. The methods of purchase for the ENG tokens include the Bitcoin (BTC) and the Ethereum (ETH).
Also, to reap all their benefits, investors and token holders of ENG need to hold them until both the Enigma and Catalyst platforms go live.