What is Maker?

Sep 13, 2022
4 min read

This blog post will cover:

  • What is Maker?
  • Where did Maker come from?
  • What are the advantages of Maker?
  • What are the disadvantages of Maker?
  • How to buy Maker on SimpleSwap?

What is Maker?

What is Maker (MKR)? The Maker (MKR) cryptocurrency is a digital token of the Maker project. This project was created on the Ethereum platform. The main goal of Maker is to create a line of decentralized digital assets that will be tied to the value of real financial instruments, such as currency, gold, etc.

Based on this platform, it is planned to create an exchange system on which it would be possible to carry out the margin trading of tokens using the ERC20 protocol.

MKR is the second Maker token, the first one is Dai token.

MKR features on the MakerDAO platform:

  • Currency unit. Transaction fees as well as commissions for the redemption of a pledge are paid by MKR tokens;
  • Token management. MKR users make global decisions on the fate of the platform. The more coins are on the account, the more powerful the vote of a shareholder is;
  • Means of recapitalization. Considering that the platform operation depends on users actions, the possibility of errors and incorrectly executed transactions is rather high. But if, due to this, extra currency is charged from the balance of the system, the platform will automatically begin to generate new tokens in order to make up for the deficit.

Where did Maker come from?

The MKR cryptocurrency appeared in 2015 as a utility token with a management function. The Maker project team has about 50 people, many of them are developers with extensive experience in cryptocurrency projects. The team consists of young and promising developers from around the world:

  • Rune Christensen is the CEO and Founder. He graduated from the Copenhagen Business School and the University of Copenhagen, Department of Biochemistry. He is also a co-founder of TRY China, an international recruiting company.
  • Andy Milenius is the CTO. Previously worked as a software engineer at DappHub. Also worked as a developer at Amazon. Graduated from the University of Michigan, Department of Computer Science.
  • Steven Becker is the President and COO. He has an extensive investment experience and has created several successful venture capital funds. He worked as the main trader in the largest bank PGS Investment Bank. He graduated from the University of Cape Town with a Master’s of Mathematics degree.
  • Soren Peter Nielsen is the head of product. Experienced engineer and software developer. He was educated at the Technical University of Denmark. He has a master degree in chemical sciences. Worked as a lead architect at IoT Systems.

What are the advantages of Maker?

  • Freedom of action in financial transactions
  • Transactions can be concluded around the world without reference to geographical and political borders
  • Cost savings due to the lack of numerous tax fees
  • Government non-interference in the financial affairs of cryptocurrency users

What are the disadvantages of Maker?

  • The cost of MKR is highly dependent on the Ethereum platform
    The MKR price always falls after the ETH price. In addition, technical failures in the Ethereum blockchain could ruin the work of MakerDAO.
  • If by the level of market capitalization Maker is in the Top 20, then by liquidity it does not get even in the Top 30
    The daily trading turnover is $1.7 million, and this is a very low indicator compared to other altcoins.

How to buy Maker on SimpleSwap?

Let’s say you want to buy Maker. What should you do? We suggest you go to the SimpleSwap homepage and follow the instructions below:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select MKR in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Enter the Recipient’s Address. Maker will be sent to this address. Be careful and make sure you use the correct address.
  • Check all the information you have entered. If everything is correct click the Exchange button.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

This is everything you need to know to buy MKR.

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