Swarm Markets: Ja! The first DEX that is regulated in Germany

For your information, please note that the BaFin (the Federal Financial Supervisory Authority) is the financial regulatory authority in Germany just as the AMF is that of France.

We are therefore going to tell you about a project based in Germany and in Berlin to be precise. Swarm Market is therefore the very first DeFi exchange fully regulated by BaFin. This is a very good starting point and immediately reassures investors.

If this is important news, it is mainly because it reassures the most wary investors. In this way, this propels the project into the upper echelons of the most cautious investors.

Swarm Markets Overview

Two entrepreneurs Philipp Pieper and Timo Lehes co-founded Swarm Markets in 2017 in California before moving to Berlin.

This is where they wanted to make Swarm Markets a company fully governed by German law. They built Swarm Markets on the Ethereum blockchain and obtained the official license from BaFin. The platform is a AMM (Automated Market Maker).

The co-founders figured that financial institutions and seasoned investors wanted to invest in DeFi products (particularly through tokenized stocks like Tesla and Amazon) but that many were wary of the risks of DeFi. Scams, Please pull and capital flight by unscrupulous founders have made enough headlines to scare off some investors. It's a fact, unfortunately.

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Thus, the project immediately wanted to stand out from the others by showing its credentials and showing that it was regulated by the high financial authority.

A promising start

Upon its launch on July 1, Swarm convinced more than 600 investors with an estimate of $35 million that they would inject into liquidity pools. Swarm has also issued its own token called SMT.

The maximum supply of SMT stands at 250 million of which 50 million tokens will be made available to the public for purchase via a two-phase sale. 50% of the tokens are reserved for the reward pool from investors. Quite rare thing: There is no allocation of tokens for team members.

Swarm Markets held a public auction in batches, going through Gnosis Auction, on July 21, 2021, which lasted 7 days. In fact, batch sales are becoming more and more used in IDO/Initial Offering.

The SMT payment token gives rewards to people who deposit into liquidity pools and 50% discounts on protocol exchange fees for those trading directly on the platform. Naturally, the more SMTs, the higher the discounts and rewards.

How to buy SMT token?

Today, as I write this post, it is August 3, and the platform is only a month old in fact. Investors who were unable to participate upstream in the private fundraising can still today buy SMT tokens on Uniswap.

Here is the address of the token found on the official website: 0x986372Dc5C1205083dd10501e22A48c246157C15

Be sure to check the import address that you will find on the Swarm Market website. Everything is indicated on the site as well as the procedure to follow.

You can also buy them directly on the site with an integrated Uniswap tab, here.

Why are investors interested in Swarm Market?

Finally, we can say to ourselves "well, one more exchange". Yes, of course, that's what we say to ourselves too, with the difference that this one is still regulated and not by just any authority, nor by just any country either.

There is another very important element when considering Swarm Market, it is the fact that we can exchange different types of assets.

Let me explain: we know that we can exchange ether or other tokens and that we can do it on almost all DeFi DEXs. However, there, on Swarm Market, you can also trade other asset classes such as stocks. So, in the near future, the objective of Swarm Market is to offer us a decentralized exchange platform for different assets from the traditional world = stocks/bonds/commodities/cryptos. And, all, on the Defi.

Admit it’s not bad. But we are still at the beginning of the explanation. What to grasp and we will have the opportunity to talk about it again in detail when the platform is equipped with all these functionalities.

Not to leave you wanting more, what I can tell you is that tokenized versions of stocks like Tesla or Netflix can prove to be very profitable for investors. Gains don't necessarily come from rising or falling assets, and that's what makes it exciting, frankly.

Indeed, we can for example use tokenized shares as loan guarantees and use them as leverage for other financing. They can also be backed by futures contracts on other assets. To do what? To make a profit of course!

I will explain this arbitration mechanism to you in an article and a dedicated video, don't worry.

Just know that this is the type of investment that the founders of Swarm Market are targeting. They want to be the platform to welcome this future DeFi boom for institutional investors.

Now, with all these great goals, we know it's not enough. The big question is whether there will be real and lasting enthusiasm for this platform. Competition is tough and projects with attractive returns are always more exciting than the others.

So it’s not easy to be seen in this jungle…

👉 Discover the platform Swarm Markets

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Disclaimer : This article is provided for informational purposes only. This is not financial, legal, tax or investment advice. Always do your own research before investing in any crypto.

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