Why Your Funds Are Safe With LaborX

Why Your Funds Are Safe With LaborX

LaborX is a non-custodial platform, meaning that users have full control of their funds. This piece explains in detail why your funds are safe with us.

LaborX is a non-custodial platform, meaning that users have full control of their funds. Chrono.Tech, the company that launched LaborX and a series of other blockchain services, has no exposure to FTX, Alameda, or other organisations that have recently declared bankruptcy.

It has been a turbulent year for crypto. After topping out in November 2021, Bitcoin began to slide, taking the rest of the digital asset markets with it. A few months into 2022, the collapse of the Terra stablecoin ecosystem rocked the crypto sector, as $60 billion in value was erased. Then early in November, FTX, one of the largest crypto exchanges in the world, collapsed, sending fresh shockwaves through the space.

FTX’s bankruptcy threatens many other crypto organisations that had exposure to it and to Alameda, its sister trading firm. Most notably, Genesis, the vast crypto hedge fund (owned by DCG, which also owns Grayscale Bitcoin Trust), has been the latest to seek funding due to enormous losses. Just like in the Global Financial Crisis, when unknown exposure to toxic assets spread contagion throughout the financial system, there’s anxiety that more companies and platforms might be about to go under – taking their customers’ money with them.

As a non-custodial platform, LaborX does not hold users’ funds. These remain in wallets controlled solely by the user, and can never be lent out or used for anything else without their permission.

Custodial Vs Non-Custodial Platforms

Centralised service providers have always been the weak link in the blockchain ecosystem. Blockchains are built on the principle of decentralisation, removing middlemen and the single points of failure they represent from financial services. However, many crypto companies follow the conventional model of holding and sometimes managing users’ money on their behalf.

  • Custodial platforms such as centralised exchanges (CEXs) and ‘CeDeFi’ services like Celsius or BlockFi require users to deposit crypto to a wallet controlled by the company. Because the customer does not have the keys to their crypto, they have to trust the honesty, competence, and security practices of that company. In some instances – for example, regulated exchanges like Coinbase and TimeX – this may be justified. In others, it is not. The history of crypto, from MtGox to FTX, demonstrates the risks of holding funds on centralised services.
  • Non-custodial platforms, including self-hosted wallets and DeFi services, enable the user to manage their own crypto without needing to trust another party. The user holds their own private keys, and therefore has complete control over the crypto in that address. The flipside of this is that users have full responsibility for maintaining online security and backing up their private keys.

LaborX provides a flexible approach to holding and managing crypto funds. Experienced users who are familiar with non-custodial wallets such as MetaMask are able to connect to the platform using these. Alternatively, a unique custodial wallet is provided for every user, to enable those less familiar with Web3 technologies to collect payment for completed deals. However, users can always connect Metamask wallet later even after choosing another registration method.

Users remain in complete control of their funds at all times. LaborX does not allocate user funds to financial investment products on the behalf of our customers.

Why Is Decentralisation Important For LaborX?

LaborX was founded to connect those seeking work with employment opportunities, no matter where they are based in the world.

Conventional freelancer sites have a series of drawbacks. As centralised services, they are owned by companies and need to maximise their profits. Fees can typically be 20-30 percent of each completed job, with payment processors adding further charges to that – especially when transferring money between countries. Non-payment and disputes can be a problem, and the platform moderators often side with the employer, even when they are in the wrong. In some cases, the sites’ administrators will screen users, blocking some from joining at all. Many freelancers will consequently find it impossible or uneconomical to use the service.

LaborX addresses these problems by using smart contracts – code which runs on the blockchain – to cut out gatekeepers and the fees they charge. Work is organised using digital agreements, and funds are escrowed before a job begins, to be released upon completion. A decentralised approach gives both workers and employers a trustworthy sense of the other party’s skills and reliability. This significantly reduces the chances of fraud, though there is still a dispute resolution process if it is required.

Because LaborX is built on the blockchain, it naturally appeals to the crypto community. It has become a popular venue for users to post and find crypto jobs, with many Web3 and GameFi opportunities. There are many blockchain developers, marketing specialists, and other professionals with experience of the Web3 sector.

LaborX’s core benefits rely on decentralisation:

  • Open to all users, no matter where they are based in the world
  • Fast, transparent, borderless crypto payments
  • Low fees (10% for talents and no fees for customers)
  • Trustless escrow process

LaborX and Chrono.Tech

LaborX is one of several blockchain-based products developed by Australian company Chrono.Tech.

  • TimeX is a top 100 crypto exchange that supports a range of popular digital assets.
  • AUDT is a compliant Australian dollar-backed stablecoin that is integrated with TimeX, enabling users to move funds seamlessly between their bank accounts and the crypto economy.
  • TimeWarp is a staking programme for TIME, the native token of the Chrono.Tech ecosystem. TIME stakers earn a percentage of the revenues generated by Chrono’s blockchain services.
  • CGU is a P2E gaming guild that was co-launched by Chrono.Tech and crowdfunded on TimeX.
  • PaymentX is a crypto payroll solution that makes processing invoices and making crypto payments fast and straightforward.

Chrono.Tech’s products each solve a different problem, and as a whole form an integrated ecosystem that enables users to access work and other opportunities the crypto sector offers.

LaborX offers an alternative way for global users to acquire crypto. Instead of buying digital assets, they can earn them by completing tasks required by employers. After users earn crypto through working or gaming, they can exchange it for other currencies or cash out to fiat using TimeX (which lists the currencies that can be earned in the games CGU supports). Additionally, every job completed on LaborX earns a bonus of TIME tokens, which can be staked in TimeWarp to earn bonuses in TIME token.

Chrono.Tech Funding And Investment

Chrono.Tech launched in 2017 following a successful crowd sale of TIME tokens. At the beginning of 2022, the company additionally closed a $30 million private funding round to enable the expansion of the Chrono ecosystem. We can confirm that there is no exposure to Alameda or FTX.

LaborX puts users in control of their work, payment, and crypto. By eliminating unnecessary middlemen and points of failure, the platform ensures that users take home more of their pay, with less risk.

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