The new prediction marketplace solves longstanding liquidity issue, but does it create new problems?
On August 31, 2020, Morpher Labs announced the launch of its flagship Ethereum-based contract trading and prediction market platform, Morpher, with the stated goal of providing users unlimited access to long-and-short trades of real-world stocks, commodities, and FOREX markets.
The technical obstructions of such a goal, however, have historically proven tricky to navigate.
In a recent interview with Cointelegraph, Morpher Labs CEO Martin Forehler explained that Morpher’s vision is to allow worldwide access to asset classes that normally have multiple barriers in the form of geographical restrictions, middlemen, and steep fees.
“The goal of the platform is to enable anyone living on Earth to trade assets 24/7, featuring minimized fees and without needing a counterparty,” said Forehler.
Many projects harbor similar ambitions, but have been hampered by the seemingly intractable problem that arises whenever projects try to offer on-chain users access to real-world assets and their price action: liquidity.
Synthetix, for instance, allows users to mint synthetic assets that track the price of real-world assets such as gold or the Nikkei stock index.