Background of the Business Model ‘SPMA’
The founder of the DLP project, during the time of operating an exchange, had to develop a system trading (liquidity provision & arbitrage trading) program for smooth operation. However, he witnessed that this program not only provided stable operation but also rapidly increased assets.
As a result, this led to the creation of a solution for how to maximize profits in the volatile cryptocurrency market and how to ensure safe investments for cryptocurrency investors, which were the aspects he had been considering. We named this algorithm SPMA (Smart Pig Mining Algorithm).
Since then, through continuous refinement work carried out with Smart Pig Co., Ltd. for over 2 years, the project has been generating stable profits to this day, and we are constantly refining it for a more stable system.
Background of the DLP Project
SPMA is a structure that secures profits through two actions: 1) liquidity provision and 2) arbitrage trading, which also contribute to the activation of the immature cryptocurrency market.
For example, Mr. A, an investor in S Coin (hypothetical), cannot use domestic exchanges because he is a foreigner. Although S Coin is listed on overseas exchanges, the liquidity is significantly lower than that of domestic exchanges, making it difficult to cash out. However, if there is sufficient liquidity provision, Mr. A can cash out at a stable price.
Not only striving for profits for ourselves in the market but also contributing to the activation of the market as a project and allowing general public to participate, we thought that we could create an exceptional cryptocurrency project that could succeed. This was the starting point of the DLP project.
Based on this good business model, we designed mechanisms for fair and transparent operation of the project (no allocation of tokens to stakeholders, transparent operation of token sale funds, etc.), and the mindset of continuing our business with the right values along with our team members can also be considered as the background of starting the project.
“Contributing to the market (contribution to activation) while securing stable profits.” This may sound like an idealistic story from an investment perspective. We will need to look into the details of the DLP project structure through other postings to understand more.
Through this post, we were able to learn about the background of the birth of the DLP project, which aims to contribute to the market while securing stable profits in an immature cryptocurrency market.
The purpose of contributing to the revitalization of an immature market is a part where investors who have traded various cryptocurrencies feel a real need.
In particular, I have often thought that if foundations listed on small and medium-sized exchanges had more liquidity, there would be less damage than now, and I also have many experiences of losses due to it.