Loopring - Millions of Dollars in Daily Trading
Loopring (LRC) is a cryptocurrency released in 2017 via an ERC-20 smart contract initial coin offering (ICO). ERC-20 smart contracts are a popular and easy way to create new cryptocurrencies which use the Ethereum blockchain. The Ethereum blockchain is extremely secure since there is a tremendous amount of mining power maintaining and securing the Ether network, and therefore any ERC-20 tokens like Loopring are very secure.
Currently, each LRC is worth over 50 cents (CoinMarketCap), and with a circulating supply of 572 million coins, this yields a market cap of $310 million. This makes it the 50th highest crypto market cap out of the thousands of different cryptocurrencies on the market, and combined with daily trading volume millions of dollars, it makes Loopring essential to know about if you are an investor or trader.
Decentralized Crypto Exchange Platform
The primary purpose of Loopring is to provide a decentralized cryptocurrency exchange platform. Presently, almost all cryptocurrency trading occurs on centralized platforms like Coinbase, Binance, Bitstamp, etc. There are multiple major problems with trading cryptocurrency on a centralized exchange. A person or organization is in control of each centralized exchange, and they can freeze or seize your funds at any time.
When you deposit cryptocurrency into a centralized exchange, you lose control of the money, because the exchange owners hold the private key. So, until you successfully withdraw the money into your own wallet, you don’t have control of the money and are trusting the exchange. This negates one of the main advantages of cryptocurrency, which is that it’s trustless and you have full control of money when you and no one else holds the private key.
Crypto Exchange Built Directly Into the Blockchain
Centralized exchanges often ruin anonymity too, since they usually require identification before you can withdraw money. Cryptocurrency is also extremely cryptographically secure, but exchanges can get hacked and this has happened many times. When a cryptocurrency exchange is hacked, they often keep running, even though they don’t have enough money to cover all user balances, and this eventually ends with big losses for users.
Loopring is a decentralized cryptocurrency exchange platform that is built directly into the blockchain. Therefore, it is far more anonymous and secure than centralized exchanges, and no one can freeze your money on this platform; plus, it is almost impossible to hack. Users of this crypto network can trade without surrendering any personal information. The platform also utilizes blockchain smart contracts to execute trades, and increases liquidity by breaking trades down into smaller pieces to obtain the most profits. It can be integrated into any blockchain that has smart contract technology, thus opening up a wide range of coins that can be traded.
A decentralized exchange platform is essential to maintain freedom and anonymity when trading cryptocurrency; it provides peace of mind that coins will never be stolen. Therefore, Loopring’s decentralized exchange is essential for the growth of cryptocurrency markets, and it is likely its token LRC will increase in value in the long term, as activity increases on its network. LRC is required to execute trades on this crypto-platform, and therefore, its value is intimately tied to use of the platform.
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This is not advice. Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always – do your homework and make decisions based on your own education. Seek information and look into projects before adding to or diversifying your portfolios.
Reference:
https://loopring.org/en/index.html
Posted from my blog with SteemPress : https://cryptocoremedia.com/loopring-decentralized-cryptocurrency/