Altcoin Spotlight: What is DeepBook?
Over the last couple of days, crypto fans everywhere have been going crazy over an altcoin by the name of DeepBook. But just what is DeepBook? And should you invest?
No matter where you are in your cryptocurrency investment journey, we have everything you need to know about DeepBook, as well as future predictions, so keep reading.
What is DeepBook?
DeepBook is an on-chain order book built directly on the Sui blockchain in the execution layer. DeepBook is part of the platform’s DeFi ecosystem, allowing individuals to trade cryptocurrencies without governmental oversight.
Basically, in layman’s terms, DeepBook is a trading technology that can be implemented by any crypto trading application functioning on the Sui blockchain.
DeepBook is a technology available in the Sui Software Development Kit and can be used by any interested developers and can be integrated into almost any Dapp.
Related: The 5 Best Cryptocurrency Exchanges for Beginners
How Does DeepBook Work?
DeepBook leverages much of the built-in technology already available on the Sui blockchain to build a better order book. It is 100% on-chain, meaning every aspect of transaction execution occurs on the Sui blockchain.
DeepBook combines Sui’s ability to process parallel transactions with its low latency to match, execute, and settle orders as needed from a variety of markets. It also offers very stable liquidity for any exchange built using its technology.
Because Sui is a DeFi platform, all trades are executed between individuals using the platform and not overseen by a central authority. That being said, DeepBook does offer order-pooling for large orders. For example, if you would like to buy 100 SUI, but one seller is offering 50 SUI while another is offering 50 SUI, DeepBook would automatically match these two orders to yours and execute the trade—similar to a traditional automatic market maker.
All trades executed using the DeepBook technology are recorded in the program’s digital leger, allowing for transparency and security for all users.
Although the technology comes as a basic package, it is reportedly very adjustable for those needing to build on it to fit their specific exchange.
Related: The 5 Best Decentralized Exchanges (2024)
Who Invented DeepBook?
DeepBook was invented by the MovEx development team at Sui, though it is a community-backed project—meaning the developers took lots of input from the community while they built it, and future modifications will be brought to a vote based on coin allocation. In the early stages, DeepBook received funding from Aftermath, Turbos, and Cetus—all technology companies operating in the DeFi space.
DeepBook officially launched in summer 2023, though the utility token, DEEP, wasn’t available for sale until October 2024.
What is DEEP?
DEEP is the utility and governance token behind DeepBook. Anyone who holds some DEEP will be eligible to vote on the future of the technology since it is a community owned project.
DEEP became available for purchase on numerous exchanges on October 14th, 2024.
Should You Buy DEEP?
Currently, the token DEEP behind the DeepBook exchange is all over the news, and that is because it has had numerous sales in the last week to send it from $0.01 per token to $0.07 per token. While this may not seem like a lot in the grand scheme of things, this is fairly successful for a token of this type so soon after launch.
That being said, we think that they hype of this project is just that—hype. Although it is new, and it has a purpose on the Sui blockchain, it is an extremely niche product and is likely not a good investment for all individuals. Plus, the jump seen above is mostly thanks to an Airdrop of the tokens, which happened shortly after launch.
First and foremost, while we trust it will work, we aren’t sure how much it will be used once launched—meaning the returns might not be worth the initial investment. While it is likely those getting involved in the very beginning might see some return, it is not known when they will see those returns.
Though, if you are a developer or exchange who plans to use the DeepBook protocol in the future, it likely isn’t a bad investment for you as you are supporting a project you love. Just know that you might not see any returns on your investment—but you will be able to vote on changes to the protocol going forward.
If you’re new to the cryptocurrency world, this might seem a little critical of such a promising project, but know that not all projects are successful, and though this one has some backing, it is mostly from the blockchain of origin—not outside companies.
So, if you are passionate about using the DeepBook protocol in the future, then invest, but know that any investment in DEEP is considered a high-risk investment and isn’t recommended for those new to the cryptocurrency investment world. Additionally, know that all of this talk about it being “too late to buy DEEP” is just that—talk, and you shouldn’t be worried if you want to wait and consider your purchase a bit longer.
Where Can You Buy DEEP?
Have you decided to buy some DEEP tokens? Here are the platforms where they can be purchased (as of October 21st, 2024, list subject to change over time).
· KuCoin
· Bybit
· Cetus
· Gate.io
· MEXC
· BitMart
· XT.com
· CoinEx
As you can see, there are numerous exchanges where you can purchase the token. It is worth mentioning that all of these are DeFi platforms and may require you to have an account with them before allowing you to trade.
Overall, DeepBook is a new technology in the cryptocurrency space and is likely useful for developers working on a Sui-based exchange. Although the project seems decent and well thought out, it is extremely niche and therefore any investment in DEEP should be approached with caution. As with any cryptocurrency investment, you should only invest money that you are alright with losing, as you may never see a return.
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