Multitude
  • Abstract
  • Introduction - Market Inefficiencies
  • Early Attempts - The Problems
  • Multitude - Our Solution
  • PRODUCT OVERVIEW
    • Synthetic Equities
    • Tradable Assets
    • Margin Trading
      • *Margin Trading
      • Margin Requirements
      • Liquidation Mechanisms & Margin Call Notifications
      • Lending
    • Dividend Distribution & Proxy Voting
    • Derivatives
    • Community-Guided Governance
    • Tax Reporting & Auto Loss Harvesting
  • PLATFORM ROADMAP
    • Development Milestones
    • Multitude DAO Foundation
    • Community Airdrop
    • Tokenomics
  • RISK & SAFETY
    • Full KYC & AML Compliance
    • Maximising Self-Custody
    • Smart Contract Audits & Proof of Reserves
    • Price Oracle Back-Stops
  • FAQs
    • Why 'Multitude'?
    • *Playing Devil's Advocate
    • Gaining Traction
    • *Know Your Entrepreneurs
    • Say Hello
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  1. FAQs

*Playing Devil's Advocate

When composing our litepaper, we wanted to make sure we made it clear we've fully considered all concerns and are confident that they are all surmountable. But, instead of asking you to take our word for it, here are few of our favourites:

  1. How will Multitude navigate complex regulatory challenges surrounding synthetic stocks and tokenized equities?

  2. How can Multitude balance centralization and decentralization to satisfy both regulators and users?

  3. What strategies will Multitude use to convince traditional market participants to adopt its platform?

  4. How will Multitude address counterparty risks associated with custody providers and intermediaries?

  5. How does Multitude plan to ensure adequate liquidity for trading synthetic stocks?

  6. How will Multitude differentiate itself from competing platforms in traditional finance and decentralized finance?

  7. How does Multitude plan to overcome technical challenges and pushback related to dividend distribution and shareholder voting?

  8. What security measures will Multitude implement to protect user assets from hacks and breaches?

  9. How will Multitude ensure accurate price tracking between synthetic stocks and their real-world counterparts?

  10. How does Multitude plan to address scalability and network congestion, particularly during periods of high demand?

  11. Regulatory challenges: Partnering with established and regulated institutions will indeed help with compliance, allowing Multitude to leverage their expertise and resources to navigate the complex legal landscape. This strategic approach reduces the time and costs associated with achieving regulatory compliance.

  12. Centralized vs. decentralized approach: Multitude's platform can streamline the traditional process by removing friction and enabling 24/7 trading while still adhering to necessary regulations. By replicating existing processes but with enhanced efficiency and user experience, Multitude can strike a balance between centralization and decentralization that benefits both regulators and users.

  13. Market adoption: Gaining traction within the crypto community is the first step, but ultimately, the potential for out-of-hours trading and arbitrage opportunities may attract hedge funds and other institutional investors. This could lead to broader market adoption in the long term.

  14. Counterparty risk: Audits and other protective measures like ring-fencing user assets can help alleviate fears and reduce risks associated with counterparty involvement. By enabling users to custody their stablecoins via connected wallets, the platform can provide an additional layer of security.

  15. Liquidity concerns: For initial liquidity, partnering with market makers may be a viable solution. As the platform grows, liquidity for lending and margin trading can also increase gradually, allowing the platform to ensure its functionality and stability.

  16. Competing platforms: Regulatory barriers and the disruptive nature of Multitude's offering can act as a competitive moat. Success will likely attract imitation, but early market penetration and continuous innovation can help maintain an edge in the industry.

  17. Dividend distribution and shareholder voting: By ensuring that each synthetic share is backed 1:1 by a real share, Multitude can provide users with a true sense of ownership without infringing on the rights of the underlying companies. Shareholders can exercise their rights, while companies remain confident in the platform's integrity.

  18. Security risks: Regular audits and adherence to best practices in cybersecurity can help mitigate security risks and protect user assets, bolstering trust in the platform.

  19. Price discrepancies: With each synthetic share backed 1:1 by a real share, users can exploit arbitrage opportunities to keep the synthetic share prices in line with their real-world counterparts. Confidence in the platform's solvency and backing will play a crucial role in maintaining accurate pricing.

  20. Scalability and network congestion: Expanding to other networks and employing multiple scaling solutions can help alleviate network congestion and ensure smooth, cost-effective transactions. Addressing these challenges proactively can maintain a high-quality user experience even as the platform grows.

  21. – please feel free to reach out by email or social media should you have others

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Last updated 2 years ago