Tag: Tradefor

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Tradefor Partners with UpTrade

Tradefor is pleased to announce a long-term licensing agreement with UpTrade — an up-and-coming robo-advisory firm specializing in income-generating investment strategies.  The product licensing agreement between the two companies opens the door to a diversified product offering that bridges conventional stock trading with decentralized finance (DeFi).   

UpTrade  specializes in execution of risk-manged short option positions that includes covered-call, short-put and short-strangle strategies.  Its partnership with Tradefor  provides an innovative, peer-to-peer trading platform that uses the public Ethereum blockchain to distribute tokenized incentives to its customers.  This gives customers the ability create income-producing strategies that are largely automated.  Proceeds from successful option trades are directly deposited into a customer’s bank account, or crypto wallet, using a unique harvesting function.

UpTrade was founded by Peter Seed, a founder of TradeKing.  

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Why Tradefor Limits Ethereum Withdrawals

If we were to allow our users to withdrawal profits earned from trading, we would run the risk of misrepresenting our capabilities. Tradefor is not a gambling site.  Nor is it a cryptocurrency exchange.  More accurately, we are an entertainment site that provides gamified trading experiences to a social network of game-playing individuals.

In order to eliminate any misinterpretation by regulators as to what we are (a trading game) we limit withdrawals of Ether to a maximum of the amount that you deposit into Tradefor.  

All withdraws must be in Ether.

Any profits gained from trading will not be disbursed to traders. Although you can continue to use your increased buying power gained from making profitable trades to trade for new gift cards,  you cannot withdraw profits accrued from trading in Tradefor in cash.

Example of permitted withdrawals

Say you deposit 0.05 Ether into Tradefor and you trade your way into a total buying power of 0.08 Ether.  At this point, you can withdraw up to 0.05 Ether (the amount you funded yourself) but you cannot withdraw the 0.03 you made in trading profits.  Any profits made from good trades will remain in your Tradefor account as increased buying power.

How do I make an Ether withdrawal?

To make fund or withdraw your Tradefor account, first download Metamask.   Metamask is a browser extension that only works in  Google Chrome or Brave browser.  It allows you to interact with smart contracts in the Ethereum blockchain and view your remote Ethereum wallet from sites like MyEtherWallet.

In the Tradefor site, go to “Funding” in the main menu.

  1. Then select the “Ethereum” tab
  2. Select “Fund” tab for deposit. and “Withdraw” tab for a withdrawal
  3. Enter amount of transfer you want to make.  One LUB equals about $0.05.
  4. Press the “Fund” button

 

IMPORTANT:  You will have to validate your funding request in Metamask before your transaction will process.

Open Metamask and select “Submit”.  This will send your request to the smart contract on the Ethereum public blockchain.

In about a minute, your transaction show be updated — both in Tradefor’s site and in your Ethereum wallet.

Here is a video of the process:

Funding with Metamask

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Showdown Trades

Lately the Ethereum-based prediction market has accepted the challenge of creating a decentralized exchange on top of Ethereum. If exchanges are completely decentralized on a blockchain, the theory goes, they could offer near-real-time, peer-to-peer clearing and settlement with no single point of failure. Cool.

The team responsible for this initiative wrote extensively about the need for an automated market maker. They created a mathematical model that tests a method for adding liquidity as a bot  – comp;letely automated.

But there is one little wrinkle. What happens if there was no liquidity in the exchange?

Unfortunately, low liquidity is a natural by-product of new technology. Early adopters are a small group. And because the exchange will be built on a blockchain, the number of active traders could be very small, indeed — as small as one or two traders.

This chart shows the potential for failure if the wrong model is applied to a one-to-one trading situation.

Since inventors are typically ahead of the curve, it is likely that blockchain exchanges will not succeed, initially, due to lack of liquidity. That’s another way of saying: “Nobody will come”. (Cue video of tumbleweed rolling down a deserted main street.)

There is a possible solution. If an exchange can cover all the squares in the matrix, then there is a glimmer of hope.

As developers, we should make many-to-many exchange capabilities a lower priority. Instead, we should concentrate on creating a process of negotiation between a single buyer and a single seller. That’s the logical starting point. Until we solve that problem, blockchain exchanges will be fighting an uphill battle.