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Since its trial launch, WeDream Exchange (WDX) has had over $200 million worth of total transactions, a surprisingly great start for the digital asset quantitative trading platform.
The WeDream Exchange is sort of a simple idea that is making complex waves in the industry, by doing something that few have done before. Born in 2017 from the idea that mainly only individuals were trading in cryptocurrencies (an emerging market at the time), and the knowledge of how important crowd wisdom is in successful trading, the WeDream Exchange’s “Consensus Mechanism” was designed. And thus, combined with AI technology, the project began.
The WeDream Exchange officially launched on March 20th, 2021, and has since made strides in solidifying itself as a secure, trustworthy system.
How it works is that the platform allows individual traders in cryptocurrencies to utilize the “crowd wisdom” mentality and AI quantitative algorithms in order to trade low-volume tokens as highly traded commodities. The goal of the WeDream Exchange, in the words of its creator, is to “actively trade the underlying assets to outperform a simple buy-and-hold strategy” thus taking full advantage of price fluctuations and, in theory, helping to beat the market. Before, this trading strategy was only focused on the big coins like Bitcoin and Ethereum, and hardly used on coins that have low trading volume.
The first step in the program was (and still is) to gather everyone that holds low volume coins to join in on the path to achieve crowd consensus while aligning everyone’s benefits together. The WeDream Exchange Facebook page consists of informational posts that try to achieve this alignment. With consistent updates from the creator of the WeDream Exchange, the page has evolved in its first few weeks and has spread a message among followers regarding the success, and future risks, of the system.
According to Yahoo! Finance, the “wisdom of crowds” referred to in the WeDream Exchange ideology, is a theory used on Wall Street that claims “large groups of people collectively are smarter than any individual expert when it comes to forecasting where stocks are headed”. When groups of investors expect higher profits from companies, they together can bump up the price of the stock. This, in a way, is like how Reddit users were able to work together and drive GameStop’s price (among others), forcing institutional short sellers to exit trades and lose out on billions- just hopefully without the “losing billions” part.
David Tan, the creator of WeDream Exchange, expects to see users and token issuers “turning to our platform’s digitized quantitative trading method as their primary mode of crypto-trading.” Then, investors will begin to add low-volume cryptocurrencies with lesser volatility to their portfolios.
In an optimistic view, Mr. Tan believes that 2021 will be the year of blockchain innovation, and the WeDream Exchange’s crowd consensus quantitative trading will be the key to blockchain success.