Updated: Jul 16, 2019
As we have discussed in an earlier article, Warren Buffet, the worlds 3rd richest man, loves productive assets and dislikes pure speculation. He also dislikes Bitcoin and lumps it up with the rest of all cryptos. To his defence he says that he does not invest in things he does not understand, and considering he just recently started using a computer, I think he does well to stay away form cryptos.
But, what if he would invest in cryptos? Which one would he choose? As, porbably, the worlds most legendary and, arguably the best, investor this is an interesting question to ask. Our answer?
COSS. At least it has a cool name, right? Except for being cool it also stands for Cryptocurrency One Stop Solution. What this means is that they are trying to be the all-in-one solution for the exchange of cryptos. So, like KCS, BNB, HT etc., COSS is connected with a exchange. With many "exchange cryptos" you must ofcourse ask yourself, what makes COSS better? Well, let us explain.
Despite being an exchange they are also implementing a news network, and online crypto education on their site, to further the mission of being the one stop solution of cryptocurrencies. And to really make this the only exchange you will need to to use, they also have functioning deposits, withdrawals, and trading with USD, EUR and GDP.
But, as we ourselves have said in a previous article (thedecrypter.com), it does not matter how good the project is if the crypto does not provide any value. So, what is the purpose of the COSS token? Well, to share the profits of the COSS exchange. 50% of all trading fees are paid out weekly to holders of COSS, that is one of the, if not the, highest rate amongst all fee-sharing tokens. What makes this even better is that this is coded in to the blockchain, meaning that this will remain as long as the COSS token does. A productive income generating asset is exactly what Buffet loves and we discuss why those qualities are so important in an investment here: thedecrypter.com
The COSS exchange also provides one of the lowest fees we know of. Well, if you are whale at least. The fees gets lower the higher your trading volume is with a lowest possible taker fee of 0,04% and a maker fee of 0%. However, as COSS has also issued the COSS Fee Token (CFT), which gives a 25% discount on fees, you can get the taker fee down to 0,03%. This is to encourage whales to use the exchange and provide liqiudity which is one of the hardest challenges for a new exchange.
COSS has existed since 2016 and have been developing the project ever since. Although other exchanges have reached higher popularity in shorter time COSS has not yet done any mass marketing as they want to have one of the best platforms before starting marketing. It must also be stated that COSS has not always worked as well as it is now which may have scared off some early users. It now has above 5 million USD daily volume, which is a almost five-fold increase from last year. So it is certainly growing quickly, partly because of its recent API implementation.
In its current state it provides a digital wallet for over 50 cryptos which can be seamlessly transfered to their exchange for trading. The UI is, according to me, clean and easy to understand.
The growth of the COSS exchange and its (contradictory) price decrease has made COSS fee-split provide each coin holder with a 16.12% yearly ROI, and when COSS will start marketing and thus increasing its volume even further this ROI will only increase.
So how can a crypto this good still trade lower and return 16.12% passively?
Well the first explanation is that it is not that known, but this will hopefully get fixed with its coming marketing.
The other one lies in how the fee-split works. The security of the fee-split, through a smart contract, also creates a bit of a problem as everytime you want to withdraw your share a transaction must be done through the ethereum smart contract underlying the fee-split. In practice you have to pay 0.001 for every "withdrawal". Considering the fees are payed out in the cryptos the fees were paid with you will end up with a bunch of different cryptos. Having to pay 0.001 eth for each withdrawal has made it impractical for almost anyone but huge holders to acctually benefit from the fee-split.
However, COSS is aware of the problem. The reason for its existance at all is because if the fees were directly paid out to you the COSS token would be classified as a security and thus be subject to massive regulation making it practicaly unusable.
They have recently made it so that the fees are mostly paid out in CFT now, which means less 0.001 fees for withdrawing. Also, if you hold for the long term the 0.001 fee will eventually be such a small part of the withdrawal that it does not matter anymore.
All in all we believe COSS to be a good long term investment for us as it provides an incredible passive yield and we believe that this fact will also make the token apriciate in price when COSS starts its marketing drive. This will also grow the exchange volume and thus the fee-split payouts. As long as cryptos will continue to be traded, COSS should be a part of this and keep providing its holders with income. Just as Buffet likes it.
As has been said before in other ways: "those who became rich during the american gold rush were those selling shovels and pickaxes, not the ones digging for gold". To stop talking in riddles: Those enabling the buying and selling of cryptos will become rich while the buyers are playing a much riskier game.
/Alex - The Decrypter.
Note: Invest at your own risk and always make sure to research your investments thoroughly.