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Sep 8, 2022

Sologenic: Tokenizing Real-World Assets on the XRP Blockchain

Crypto traders looking to expand beyond spot markets by investing in crypto synths or tokenized securities, and participating in decentralized derivatives markets other than Polkadot’s Firefly Exchange or Ethereum’s Synthetix, now have another option to consider — Sologenic. 

While cryptocurrencies and their underlying blockchain-based technologies are fantastic for facilitating decentralized derivatives markets, Sologenic aims to make investing in blockchain-based derivatives products and tokenized assets more effective than ever. In doing so, it’s bridging the gap between the crypto and traditional financial markets in unforeseen ways. 

In this post, we take a close look at Sologenic (SOLO) to help you better understand what it is, how it works and its potential role in your crypto portfolio.

What Is Sologenic?

Sologenic is an XRP blockchain-based ecosystem designed to tokenize the economy and bridge the gap between cryptocurrencies and global stock exchanges by facilitating the trade of stocks, commodities, ETFs and other traditional assets on the ultra-fast XRP blockchain network.

Created for both retail and institutional investors, Sologenic offers an entire ecosystem with a decentralized exchange, tokenization brokerage solution and a native blockchain wallet, giving investors and traders the ability to use cryptocurrencies in any way imaginable.

In fact, SOLO holders can tokenize more than 40,000 different stocks, ETFs and commodities tradable on top exchanges across North America, Europe and Asia. Sologenic allows investors to tokenize these assets by converting them into digital tokens that can be securely circulated on the blockchain.

SOLO stablecoins are backed by 1:1 by real-world assets. Thus, each stablecoin represents ownership of the asset. By tokenizing non-blockchain or “real-world” assets, users can retain all of an asset’s characteristics while increasing its liquidity.

History of Sologenic

Sologenic was founded by Reza Bashash and Bob Ras in 2019. The pair also founded Coreum Blockchain in 2018. There isn’t much information regarding Bashash’s background on the official Sologenic site, but he is nonetheless listed as a co-founder, in addition to being the project’s tech lead.

Despite being a community-funded project and the recipient of an XRPL grant to expand its XRP-based NFT marketplace, Sologenic has partnered with XUMM, Allbridge and, most obviously, XRP Toolkit. These alliances further enhance its functionality and ability to achieve its mission of bridging the gap between the crypto world and that of traditional financial institutions and markets.

How Does Sologenic Work?

Sologenic’s overall goal is to enable the on-demand tokenization of over 40,000 stocks, commodities, ETFs and other traditional, real-world assets from each of the major global financial institutions and markets. To achieve this and meet the demands of both SOLO holders and the greater financial industry, the project must rely on an advanced blockchain such as Ripple.

Built on Ripple’s blockchain, the Sologenic trading platform lets users turn non-blockchain assets, such as stocks, commodities and ETFs, into tokenized assets for trading on its decentralized exchange (or DEX). While most DEXs only trade digital assets such as crypto, Sologenic’s DEX uses its SOLO stablecoin to bridge the gap between the centralized and decentralized worlds by facilitating the trade of traditional assets in blockchain form.

Each derivative on the Sologenic platform is created as a stablecoin, and each stablecoin is backed 1:1 to represent ownership of a tokenized asset. When an asset is tokenized, it’s denominated by the symbol s.

Sologenic’s native coin, SOLO, is also deployed as a market maker and liquidity provider. Each coin is issued on Ripple’s XRP ledger, providing near-instantaneous transactions and maximum liquidity. As such, the entire Sologenic ecosystem is centered on the use of SOLO, making it an incredibly powerful utility token.

With low gas fees and a high throughput of over 1,500 transactions per second (TPS), Sologenic offers a competitive advantage over Ethereum’s Synthetix, Polkadot’s Firefly Exchange and the few other decentralized derivatives exchanges currently on the market.

Features of the Sologenic Ecosystem

The Sologenic ecosystem is rich in products, services and features. While new products and features are scheduled for launch in the near future, some of the project’s current primary features are listed below.

SOLO Wallet

The SOLO DEX, which we'll get to in a minute, is accessible via the SOLO Wallet. The newly updated SOLO Wallet app provides SOLO holders with everything needed to manage all of their digital assets.

With the SOLO Wallet app, you can store both cryptocurrencies, like SOLO and XRP, and tokenized assets, like stocks and ETFs, all in a single decentralized wallet app. You can also add, activate and directly manage multiple wallets, transfer digital assets, track recent transactions, receive live market updates and much more. Featuring biometric authentication, you can trade confidently, knowing your tokenized and crypto assets are fully protected.

As mentioned, the SOLO Wallet is home to both the wallet and the DEX. It’s available for Android and iOS devices.

SOLO Card

SOLO holders are also eligible to receive a free SOLO Card, used to instantly spend their crypto anywhere in the world. Similar to the cards issued by traditional financial institutions, there are four tiers of SOLO Cards, each offering varying degrees of discounts on select hotels and events, monthly cashback rebates, airport lounge access and other benefits, depending on the amount of SOLO held.

For instance, a tier two SOLO holder with under 100,000 SOLO is eligible for the SOLO Black Metal Card, which offers 0.5 percent monthly cashback. On the other hand, a tier four cardholder with the SOLO Black Whale Card can receive up to two percent monthly cashback.

Regardless of tier level, a minimum balance must be maintained in order for a card to remain activated.

Tokenized Assets Trading

The financial world is ripe for technological innovation and transformation. Thanks to blockchain technology, such as the Ripple platform, new doors are opening and paving the way for decentralization and global asset liquidity. With tokenization, markets can achieve unforeseen levels of interconnectedness and 24/7 liquidity for maximum asset flexibility and gains.

The sophisticated Sologenic ecosystem utilizes blockchain technology to provide on-demand tokenization for a wide variety of assets, including non-blockchain assets typically tied to traditional financial markets, like stocks and ETFs. In fact, SOLO holders can access thousands of stocks, commodities and ETFs from over 30 major global exchanges. The platform’s infrastructure connects blockchain-based assets with legacy financial systems, supporting asset tokenization and cryptocurrency trading for other asset classes.

In other words, by facilitating tokenization, alternative assets like crypto can be used for making investments, not only in crypto or NFT but in stocks and other traditional investment vehicles. Examples include investments in everything from cryptocurrency baskets and Fortune 500 companies to commercial real estate, public business projects and even antique art.

Under such a tokenization system, every digital token represents a stake in the ownership of an underlying asset, and the end-user has full control over the management of the asset. Each SOLO holder can access, buy, sell and trade digital tokens 24/7 on global markets via a DEX.

With blockchain technology, full transparency is also provided over the entire asset tokenization process. Since third parties responsible for the buying, selling and securitization of assets are removed from the equation, investors can tokenize and trade any assets on demand without the regulations, overhead and points of failure prevalent within the traditional financial system.

SOLONEX

SOLONEX is Sologenic’s tokenization brokerage solution, exclusively designed for investment firms, banks, exchanges, brokerage houses and other institutional investors. It can tokenize a multitude of real-world assets and is available for 24/7 trading, fractional trading, managing liquidity, launching funding rounds, managing custodial services and more. Overall, it’s a trading solution designed to provide large-scale investors with access to decentralized markets while enjoying the same security and technical capabilities provided in traditional finance.

Similar to Sologenic’s other services and products, SOLONEX also utilizes the XRP ledger. However, unlike the project’s other products, SOLONEX isn’t available to retail investors, and a demo must be scheduled with the team behind the project in order to learn more about its specific features.

Sologenic DEX

Sologenic DEX is a recently developed, decentralized trading platform designed to allow users to trade various cryptocurrencies and tokenized assets with other users peer-to-peer (P2P). Sologenic’s tokenized assets are openly available on its XRP-driven native DEX. Here, you can hold SOLO and trade crypto or real-world assets via an online platform, which can also be accessed through the SOLO project's iOS and Android blockchain wallets.

Sologenix DEX clients can trade their tokenized assets on-demand in real time with other investors by simply connecting their wallets. In order to ensure security, an authorized trust line must be opened at the Sologenic ATP.

As discussed, the DEX is built on the incredibly fast and secure XRP blockchain ledger. In addition to the use of authorized trust lines, users maintain full custody and control of their private keys for added security and trust.

Although the DEX platform takes an order-book approach to facilitating transactions, its users enjoy self-custody, giving them full ownership over their tokenized assets. This means the exchange can only access funds through an existing wallet controlled entirely by the user.

To add to Sologenic’s customer-centricity, transactions are settled quickly and trading fees are as low as $0.000005. The trading terminal also features fully customizable widgets, theme customization and multilingual support.

Some specific features of the Sologenic DEX include:

• P2P trading of tokenized assets

• Access to powerful professional charting tools

• Minimal gas fees reaching as low as $0.000005

• Fast transaction speeds, with the ability to handle up to 1,500 transactions per second

• Multi-language support

Again, the Sologenic DEX can be used to execute trades, exchange funds and complete settlements nearly instantly. Even more impressive is its fast trade execution, which mirrors the same speed and experience of trading on a centralized exchange. Moreover, there’s no need to settle for token swaps. With the Sologenic DEX, traders can utilize market orders, stop losses, limit orders and other advanced trading features.

Sologenic NFT Marketplace

Launched by the Sologenic Development Foundation, the much-anticipated Sologenic NFT Marketplace is quickly becoming a top platform for minting and trading NFTs on the XRP blockchain. During a limited early access period, a select group of creators from around the globe were chosen to mint the marketplace’s very first NFTs.

As NFTs continue to grow in popularity throughout the entertainment world by giving creators and artists a means of monetizing their work in an unconstrained, decentralized manner, Sologenic’s NFT Marketplace aims to deliver with NFTs comprising all types of categories, including music, motion graphics, film, and even sports. With zero gas fees as well, new creators can begin minting their works with fewer up-front costs.

Meanwhile, the Sologenic NFT Marketplace platform provides a user-friendly experience catering to both new and experienced traders. It’s available in over 20 different languages, and integrated with the Sologenic DEX to completely blur the boundaries between NFT minting and modern-day trading.

It’s also home to Sologenic Originals, where you can create your very own one-of-a-kind 3D avatar for metaverse exploration. The latest collection just dropped in August 2022, and the next will drop on September 15, 2022.

Liquidity Provider Reward Program

On top of everything else included in the SOLO ecosystem, users are rewarded for participating in the exchange and providing liquidity for transactions. That’s right: In addition to a versatile utility token, advanced trading platform and full asset tokenization capabilities, Sologenic offers its unique Liquidity Provider Reward Program to spur market participation. Loyal SOLO holders participating in the program can earn up to 20 percent annually or more.

Governance

The company behind the XRP blockchain used by Sologenic is Ripple Labs, Inc., which works with hundreds of governments and financial institutions around the world. In fact, Ripple collaborates with some of today’s leading global financial institutions for payment processing, including American Express, PNC, MoneyGram, SBI and more. As far as blockchain and crypto trading goes, there may be no better company from which to receive support and governance.

Sologenic Road Map

To date, Solegenic has achieved several milestones as its development team remains dedicated to implementing new components in an effort to improve the ecosystem.

Here’s a rundown on the milestones SOLO has reached so far, and what the project is hoping to achieve in the near future.

Completed:

• Assets Tokenization Testnet

• Client SDK Libraries

• JSON-RPC

• XRPL-STREAM

• Sologenic DEX

• SOLO DEX Android and iOS App

• Sologenic NFT Marketplace

In Development (Q4 2022):

• SOLO Cards (Debit/Credit) Launch

• Sologenic DEX Cross-Chain and Interoperability Asset Bridge Launch

• NFT Marketplace XLS-20D Migration

• Sologenic Original Series NFT Program

• IDO Launchpad Implementation

• Market Index for XRPL Tokens

Pending:

• Securities Broker Dealer License

SOLO Tokenomics

There are over 399 million SOLO coins in circulation, with a 400 million total (and maximum) supply. This means no more than 400 million SOLO coins will ever be created.

To keep token levels balanced and in check (as with many blockchain coins), SOLO is a deflationary currency. Every time a transaction takes place, a certain number of tokens are burned. The Sologenic ecosystem utilizes this deflationary mechanism to limit the supply of SOLO tokens, making them more valuable.

In regard to token distribution, 35 percent went to the development team via a 36-month lockup period; 15 percent was made available for public sale with no lockup; 15 percent went toward liquidity and operation; and 15 and 20 percent (respectively) were allocated for the SOLO Expansion Fund and SOLO Community Fund.

SOLO Price Prediction

At the moment, SOLO has a market cap of just over $50 million and is priced at $0.1266, which is down significantly in the current bear market from the coin’s all-time high of $6.63.

While one could easily say SOLO is in a downward trend, given its infrastructure and niche within the coin market, the future may still look bright for the SOLO token. Given its current low price in comparison to its all-time high, it’s safe to say there’s plenty of room for the bulls to run.

Where to Buy SOLO

Interested in getting your hands on some SOLO tokens? You’ll be glad to know there are a number of crypto exchanges that offer it, including Bybit.

Every exchange platform operates a little bit differently. Some platforms, like Bybit, are very easy to use. You would first need to log into your existing Bybit or sign up for a new account. Once you’re logged in, navigate to the SOLO/USDT Spot Trading page and you’ll be able to see the current market buy and market sell prices. On the right side of the page is where you can create a buy order for this token. 

Is Sologenic A Good Investment?

Sologenic is creating a diverse ecosystem for investing in tokenized stocks, commodities, ETFs and other assets. Despite this, its SOLO utility token is underperforming considerably as of late, sitting considerably off of its all-time high set earlier in 2022. This, along with its solid XRP-based infrastructure and positive growth outlook, makes SOLO a project with obvious long-term investment potential.

In fact, PricePrediction predicts that SOLO prices will reach $0.75 by 2025 and increase to $5.07 by 2030. This is supported by Tech News Leader as well, with it believing that SOLO prices will be on an upward rise in the following years. It may even be possible for SOLO to break its all-time high by 2030 to 2031. 

Closing Thoughts

Sologenic clearly has tremendous potential as a derivatives protocol. By leveraging the scalability, consensus mechanism and other worthwhile features of Ripple’s XRP blockchain technology, the project has successfully evolved into a complete asset tokenization ecosystem with a lot to offer for institutional and retail investors alike.

Nonetheless, Sologenic’s lack of adoption is currently its greatest obstacle. With liquidity and volume at play, the platform must have a certain number of users in order to maintain its utility. In order for Sologenic to compete with Synthetix and other dominant derivatives platforms, it must continue developing useful, unique and value-driven features to attract crypto traders and investors from competing networks.