LIQNET.COM is quite different to any exchange you have seen before. Using its own LEN mechanism, the Singapore-based project pools orders from other platforms into one single interface and allows users to trade at the best prices and minimum spread. Why is liquidity important for an exchange?
According to the Blockchain Transparency Institute (BTI), more than 80% of the volume exchanges show is faked. Besides raising concerns about the transparency and business practices of current trading platforms, this underlines a fundamental problem of insufficient liquidity in a bear market. During abrupt market movements crypto is famous for, low liquidity basically means that you will not be able to buy or sell a significant amount of coins and miss out on profits or even lose money. If you aim to sell a large amount of coins, doing this without toppling the price can be problematic. LIQNET with its liquidity aggregation may be an answer to the problem that has been plaguing the market for some time now.
Сalling LIQNET an exchange would be inaccurate, rather, it is an exchange aggregator. LIQNET uses public APIs of other crypto exchanges to collect purchase and sale bids into a single order book. This allows users to get the benefit of trading on several exchanges, eliminating traders’ nuisances such as slippage (difference between the expected price of a trade and the price at which the trade is actually executed). So in effect, LIQNET is not trying to replace them, but rather to improve user experience through offering a better trading terminal and more options for users, as well as better prices. LIQNET allows for additional trading instruments some other exchanges don’t have, such as take profit, trailing stops, Iceberg, IFD, OCO, IFDOCO orders and more.
Considering that 2018 was the worst year for exchanges in terms of amount of crypto stolen, LIQNET pays special attention to its security. For the server part, they use a geo-distributed private cloud, while the client part consists of a web terminal. They cooperate only with experienced and reputable players, and each version of the exchange is subject to a strict independent security audit. There is a two-factor authentication, KYC through a reliable partner.
LIQNET issues their own utility token LEN. Token holders will receive a discount of up to 90% on exchange fees. Also, holding tokens grants you voting rights like choosing what trading pairs appear on the exchange and ways to spend collected commissions. Finally, LEN is a utility token, and exchange tokens with utility have good growth potential if the project has strong fundamentals and an experienced team.
In 2018 LIQNET took part in almost all major conferences in order to introduce the exchange to top industry participants: Crypto Valley Conference July in Zug, Switzerland, Amsterdam Blockchain Expo 2018 in June, Block Show Europe 2018 in Berlin and of course the Consensus 2018 in New York.
“We collected feedback from traders and based on their problems and pains we came up with LIQNET” – said Roman Shirokov, founder and CEO of LIQNET. “It was important for us to have a working product before we proceeded with our tokensale so potential investors could see we were legit and actually working hard to change the crypto industry”.
LIQNET was founded in 2015 by Roman Shirokov, Vyacheslav Kasatkin and Yevgeny Tarasenko. All of them have a proven track record in finance, stock and forex trading and information technologies. LIQNET holds the following EU financial services licenses: FVR000351 Providing services of exchanging a virtual currency against a fiat currency, FRK000292 Providing a virtual currency wallet service, FFA000281 Operating as a financial institution.