The global securities market is composed of three major instrument types: equities, debt, and derivatives. In 2016, these three markets had total notional values of US $67 trillion, $99 trillion, and $1.2 quadrillion, respectively. GMDEX are certain that they can get a significant part of this existing market and most of the yet to be created market for asset backed tokens, i.e. Ethical Coins™.
How will GMDEX work?
GMDEX introduces the first platform where users can seamlessly invest in CIT’s, securities, real estate funds (REFs), exchange-traded funds (ETFs), passive coin-traded funds (CTF) and active coin managed funds (CMFs) through a streamlined process and with significantly lower costs than traditional investing. Currently, the crypto-economy is extremely volatile because of the lack of the tokes representing liquid, fungible assets, thus Ethical Tokens. Investors can make 10x gains in one month only to lose it all the next month. Thus far, there have only been a limited number of ways to diversify crypto-portfolios to mitigate these risks. Real diversification across multiple asset classes is essential for a well-balanced portfolio.
GMDEX will have the GMDEXT token for investors and investors in the GMDEXT token will share in the GMDEX profits. The GMDEX tokens will be available in a later (target is July 1st, 2018) CIT. Everything on the GMDEX platform also has its own asset-backed token (“GEMDEX-“) with its own unique name (like a BHP share would be a GMDEX-BHP and would show up in the Owner’s portfolio/wallet as BHP) which, via our token exchange platform, can be traded simpler, faster and cheaper than on conventional securities markets.
To ensure the safety of the underlying assets represented by the GMDEX token, a digital trust fund holds the exact amount of shares as tokens issued. This digital trust fund cannot be claimed by GMDEX, the broker or anyone else, and is protected by strict laws regarding trust funds, even in the case of bankruptcy. Only token holders may reclaim the underlying securities at any time, thus arbitrage will keep the value of the tokens in line with the underlying security.
Our asset-backed GMDEX tokens empower investors to hedge the risk of cryptocurrencies in real assets without needing to convert their cryptocurrency into a fiat currency. All dividends and coupons are automatically transferred to token-holders through self-executing smart contracts on the GMDEX T-Chain network “blockchain 3.0”. The content of the smart contract and the GMDEX token itself is unalterable, cryptographically secured and visible to everyone on the blockchain if desired.