LIQNET.COM — Why Liquidity Aggregation is Necessary in Current Market
Singapore-based liquidity aggregator LIQNET.COM is putting a new twist on how crypto trading may look in the future. With the numerous cryptocurrency exchange platforms available, LIQNET offers an alternative which uses LEN (Liquidity Exchange Network) mechanism. Roman Shirokov, Founder and CEO of LIQNET explained, ‘The LEN mechanism pools orders from other platforms into one single interface and allows users to trade at the best prices and minimum spread. We believe that this differentiates LIQNET from other exchanges in the market.”
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 the trader will not be able to buy or sell a significant amount of coins and miss out on profits or even lose money. If traders aim to sell a large amount of coins, doing this without toppling the price can be problematic. Roman added that LIQNET with its liquidity aggregation may be an answer to the problem that has been plaguing the market for some time now.
Roman also mentioned that calling LIQNET an exchange would be inaccurate, rather, it is an exchange aggregator. “This is because LIQNET uses public APIs of other crypto exchanges to collect purchase and sale bids into a single order book.” According to Roman, 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).
“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,” said Roman. He added, “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.”
Security in Cryptocurrency Trading
One of the issues that is often brought up when talking about cryptocurrency is security. The year 2018 was also the worst year for exchanges in terms of amount of crypto stolen. Hence, LIQNET was developed with special attention to its security.
Furthermore, Roman explained that for the server part, LIQNET uses 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 also has other security solutions, which are:
- Cryptocurrency storage on site – geo-distributed hot wallets (storage that is connected to the internet) and cold wallets (not connected to the internet), along with addresses with multi-signatures for each currency;
- Background clearing – checks the correctness of current balances and when there is a difference, it sounds the alarm and transfers funds to cold wallets and addresses with a multi-signature.
Since its launch in 2015, LIQNET has received a few financial service licenses from EU, such as license to provide services of exchanging a virtual currency against a fiat currency, to provide a virtual currency wallet service, and to operate as a financial institution. “The licenses we received from the EU show our commitment in offering a legit and secure cryptocurrency exchange for our users,” said Roman.
Not only that, LIQNET issues their own token LEN, for which will receive a discount of up to 90% on exchange fees. Moreover, holding tokens grants you voting rights like choosing what trading pairs appear on the exchange and ways to spend collected commissions. Roman also added that LEN is a utility token (a token that is issued in order to fund development of the cryptocurrency and that can be used to purchase a good or service offered by the issuer of the cryptocurrency), 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 in 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. In 2019, the team is sending representatives to the Jakarta Blockchain & Fintech Annual Summit happening today, 15th of January.
“We collected feedback from traders and based on their problems and pains we came up with LIQNET and continue to develop it,” said Roman. “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 is a cryptocurrency exchange with Liquidity Exchange Network (LEN) technology. After it was opened for crypto trading in 2015, LIQNET continues to grow and develop steadily until this year. Founded by experts in finance, stock and forex trading and information technologies, LIQNET uses a unique mechanism aimed at providing a simple, secure, and profitable trading experience for its users. Up until 2019, LIQNET holds EU licenses to provide services of exchanging a virtual currency against a fiat currency, provide a virtual currency wallet service, and operate as a financial institution. For further information, visit www.liqnet.io or www.liqnet.com.