GMX (GMX)

Utility

GMX is the platform’s utility and governance token. Holding GMX lets users participate in decision-making and earn a share of the trading fees generated by the platform.

Governance

GMX token holders can vote on proposals that affect the platform’s future, helping guide its development and policies.

Fee Sharing

GMX accrues a portion of the fees from spot and perpetual trading markets. These fees are distributed to GMX holders, providing a way to earn passive income.

Trading Platform

GMX powers a decentralized exchange where users can trade cryptocurrencies like BTC, ETH, and AVAX with low fees and price impact, directly from their wallets on Arbitrum and Avalanche networks.

Pros

• User-friendly design with a smooth trading experience.
• Offers high leverage up to 50x, allowing for potentially bigger returns.
• Uses advanced oracles like Chainlink for accurate and secure price data.
• Decentralized exchange on Arbitrum and Avalanche, providing low gas fees.
• Allows both spot and perpetual trading with a single multi-asset liquidity pool (GLP).
• Supports staking and liquidity provision with rewards and multiplier points.
• Regular security audits and a bug bounty program enhance transparency and trust.
• Fee structure is relatively low, with about 0.1% fees on trades.

Cons

• Limited selection of cryptocurrencies compared to many centralized exchanges.
• Trading options are fewer, which might not suit users wanting a wide variety of tokens.
• The platform is still evolving, with ongoing work to expand assets and governance features.
• Some users may find the AMM (automated market maker) model less familiar than order book models.

Overall, GMX offers a strong decentralized trading platform with good leverage and security but has a narrower range of tokens available.

Founders and Key People

GMX has not publicly revealed clear information about its original founders. However, two key people authorized to sign a multisig wallet connected to GMX are Krunal Amin, founder of UniDex, and Benjamin Simon, co-founder of Stealth Crypto.

Other Notable Individuals

Karsten Schramm is listed as the founder of GMX in some sources. Arthur Hayes, co-founder and former CEO of BitMEX, is the largest individual holder of GMX tokens but is not a founder.

Developer Identity

One of the known developers uses the pseudonym "X" on Twitter.

In summary, the project remains somewhat anonymous with a few known key figures involved in its management and development.

Investors in GMX

GMX has attracted a mix of investors including institutional investors, high net worth individuals, and retail traders. Some key points about its investors are:

• Institutional Investors and Private Parties: These investors often buy GMX tokens at private prices, which are negotiated and not publicly disclosed. They usually have specific terms like lock-up periods.
• Retail Traders: A significant portion of trading volume comes from retail traders, who use the platform for spot and perpetual contract trading.
• Stakers and Liquidity Providers: Around 86% of the circulating GMX tokens are staked on the platform, showing strong trust and participation from the community.
• Anonymous Development Team: The original team behind GMX remains anonymous, with the lead developer known only by a Twitter handle.

GMX operates on Arbitrum and Avalanche blockchains, attracting investors interested in decentralized perpetual trading with low fees and leverage options.

Halal Status of GMX

• Yes, GMX is generally considered halal by some Islamic finance sources because it is a decentralized platform that shares revenue and governance with token holders.
• The main concern is that GMX involves leveraged perpetual futures trading, which some scholars view as complex from an Islamic finance perspective.
• Practical Islamic Finance notes that GMX is "comfortable to invest in from a halal perspective," but individual opinions may vary depending on interpretation of leverage and trading practices.

For more detailed guidance, consulting a qualified Islamic finance advisor is recommended.