🎩Market Background & Issues
Last updated
Last updated
The digital asset market has grown rapidly over the past few years, encompassing a wide range of assets from cryptocurrencies to NFTs (Non-Fungible Tokens), game items, and digital content.
Cryptocurrencies: Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have become mainstream, with numerous new projects and assets emerging based on blockchain technology.
NFTs: Digital assets such as art, game items, and virtual real estate are being traded as NFTs, establishing themselves as new means of value storage and exchange.
Game Items and Digital Assets: Millions of users worldwide trade digital assets including game items, characters, and currencies in online games and virtual worlds.
Digital asset trading often occurs on single platforms, leading to the emergence of new economic models such as P2P (Peer-to-Peer) trading and escrow services. There is an increasing demand for platforms that can securely and reliably facilitate the trading of assets like game items and NFTs.
Users are placing more value on rewards for trading participation and the utility of assets, beyond mere ownership. New concepts such as Trade to Earn (T2E), staking, and NFT utilization are emerging, and there is a growing demand for platforms offering these features.
Digital asset trading often involves complex and inefficient processes.
Complex Procedures: Trading assets often requires navigating through multiple intermediaries or exchanges, making the process complex and time-consuming.
High Fees: Many platforms impose high transaction fees, adding a burden to users.
Withdrawal Constraints: Converting digital assets to fiat currency or withdrawing them can be restricted or time-consuming.
Security and trust are critical issues in digital asset trading.
Fraud and Hacking Risks: P2P trading involves inherent trust issues and risks of fraud or hacking.
Lack of Transaction Guarantees: Some platforms lack adequate transaction guarantee systems, which can threaten the safety of transactions.
Users have limited opportunities to effectively utilize their digital assets.
Inactive Assets: Many users simply hold onto their assets without finding ways to utilize or generate additional value from them.
Liquidity Issues: Assets such as game items and NFTs often suffer from low trading frequency or liquidity, making it difficult for users to trade their assets at the right time.
Regulation of digital asset trading varies widely and remains unclear in many jurisdictions.
Insufficient Legal Framework: The lack of a clear legal structure means that platforms and users face regulatory risks when trading. KYC/AML Issues: The application of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations is complex, often degrading the user experience.
