With Komodo, entrepreneurs can distribute their coins using BarterDex, a decentralized exchange.
BarterDex brings all the advantages of decentralization to the coin trading and exchange process. With BarterDex, there is no central server or exchange that can be hacked, no third-party fees, no control points created by a central authority, and no arbitrary rules that can change at any time.
To begin trading or distributing coins using BarterDex, all projects have to do is specify how many nodes will participate in the process. Requirements to the nodes are minimal, making the process available to a wide range of organizations and entrepreneurs. In case a project doesn’t want to invest in equipment, it can rent servers and do so with several servers in different parts of the world, further projecting the project from attacks or arbitrary third-party regulations. For example, Komodo’s partner Monaize used seventy servers located throughout the world.
The next step in coin distribution is breaking the supply located in the Genesis Block of the new asset chain into smaller pieces that will eventually trade on BarterDex decentralized exchange. The division of the total coin supply into blocks is entirely up to the entrepreneurs running their projects. If an entrepreneur is located in a country with strict Know-Your-Customer requirements, he or she can divide the coins into parts that satisfy the requirements of the country. The entrepreneurs are also free to decide on the exact date and time when the distribution starts and when packs of coins become available. All coins for a chain do not have to become available at the same time. Founders can decide how many coins they want to sell and when. This opportunity also makes running initial coin offerings on the Komodo platform more secure compared to dealing with centralized third-party exchanges. Also, adding coins to the available supply can allow ventures to avoid dealing with whales who buy large numbers of coins to gain control of a new venture. And in the scenario when whales do buy coins, the exchange will still treat all the members of the community fairly despite their size.
When the coins become available on BarterDex, members of the Komodo ecosystem can buy them just like any other coin.
Komodo’s decentralized trading exchange BarterDex offers users features that are not available with traditional exchanges. For instance, on the BarterDex users can make between ten and twenty trades at the same time. This means that even if someone wanted to buy a large number of shares, the exchange would still be processing other orders and members with smaller orders would be able to complete the purchase of coins.
The exchange also provides projects with several methods of protection against theft of funds. The first method is that attackers or internal thieves will only potentially get access to the funds on the node or nodes they are able to penetrate and if someone manages to divert the entire supply of coins before the initial coin offering occurs, the startup will be able to run Komodo software to create the same coin again without having to deal with any other problems or issues.
Because the trading occurs simultaneously for all available parts of the coin supply, ventures running ICOs at any moment are only in possession of their own supply of coins or the funds provided by ICO investors, but never both at the same time. This is what makes ICOs on BarterDex different from traditional ICOs on centralized platforms, where a project first collects the funds and then distributes the newly generated coins, with a period of time in between these events when the project is in the possession of both the coins and the funds from investors.
Once the coins become available on BarterDex, they also immediately become available for trading by the community. This is also very different from what happens with centralized ICOs, when projects need to wait and negotiate with exchanges to get onto an exchange. Obviously, being able to trade right away is very beneficial to any entity, person or a group of people running an ICO.
These features make using BarterDex much easier, simpler and more convenient compared to working with centralized platforms when running an ICO.