Loop ring (LRC) – a new trading paradigm =

Loopring (LRC) raised 45 million with their ICO last year and with this amount they want to completely change the way crypto exchanges work. If it is up to Loopring, cryptocurrency collectors will no longer have to go to many different trading platforms to buy their favorite cryptocurrencies. Arbitrage trading and liquidity differences will also be a thing of the past when Loopring realizes its objectives. You can read how they do this and what kind of revolution this can bring about in the crypto world in this explanation about Loopring (LRC).

 

Quick view:

  • What is Loopring?
  • Characteristics token
  • Team
  • roadmap
  • Advisors & Partners
  • Partners
  • Popularity
  • Criticism
  • Conclusion
  • Buy running ring

What is Loop Ring (LRC)?

To get a good picture of the extent to which Loopring (LRC) is revolutionary, it is best to start with the problems it aims to solve.

The problems

There are currently three major problems in the world of crypto that are desperate for a solution.

1. Price differences between exchanges

Over the years, hundreds of trading platforms have been launched on which you can trade cryptocurrencies. Well-known of these are Binance, Bittrex, Huobi, Bithumb and on the coinmarketcap exchange page you can see that there are at least 207 different ones in total.

It is nice that we as crypto traders are not limited to an exchange and can simply find out for ourselves which one we like best. Moreover, this ensures that we can buy any crypto coin we want. However, it also poses some problems. It is quite confusing that the prices per cryptocurrency can differ considerably per exchange. This offers some people the opportunity to engage in “arbitrage trading”. For example, they buy a Bitcoin on one exchange for $8,000 and sell it on another for $8,050. That in itself is not a problem, but it is a pity when you are the one who buys the Bitcoin for the higher price. It would be a lot nicer if you could always buy this Bitcoin for the lowest price.

2. Distribution of liquidity

The total liquidity of the cryptocurrencies is spread across all exchanges. As a result, not all buyers and sellers trade in the same place and it may take longer for you to fill a buy or sell order.
It is also possible that your favorite coin is on Binance, but not on Bittrex. If this is the case for ten others in addition to this coin, you will be trading on many different exchanges within a short time. Then see how to keep a nice overview of all your cryptos.

3. Your money is in the hands of the exchange

“If you don’t own the private keys, you don’t own the coins” is a frequently heard quote in the crypto world. The bottom line is that when you have your tokens on the exchange, you are not in possession of your own private key. This is in the hands of the platform. This also means that they own your money and decide whether you benefit from forks and airdrops. The owner of the platform can also decide to run away and take all your tokens with him. This is expected to have happened at BitGrail where $170 Million worth of NANO went missing.

Loopring wants to completely change the way exchanges work. With this they want to solve all the above problems in one fell swoop.

The solutions

Loopring’s protocol is able to fundamentally remove these stumbling blocks. Loopring is a decentralized and automated system that can trade between different exchanges. This means that you can buy Gifto from Binance via Loopring, for example, and just as easily purchase Ethereum from Bittrex. Moreover, these coins do not remain with Binance or Bittrex, but are stored in your own Loopring blockchain wallet, the private keys of which you manage.
This way you are armed against the risks that storing coins on exchanges entails. Costs are also greatly reduced. You do not always have to pay withdrawal costs (costs you incur by withdrawing crypto coins from the exchange) because you transfer money to another exchange. Moreover, you are no longer dependent on the liquidity per exchange. All trading platforms are bundled in this way and the liquidity is therefore many times higher. As long as blockchains support smart contracts, Loopring can control the trading of its coins.

Below is a brief overview of the advantages of Loopring (LRC):

  • It is a decentralized protocol that offers automatic trading
  • There will never be liquidity problems again
  • You can trade any token/crypto currency on any exchange
  • You can trade multiple tokens within one order
  • You can buy your coins from the exchange where they are cheapest and sell them on the exchange where you get the most for it
  • Your coins always remain on your wallet until your order is filled
  • It has the ability to be deployed on any blockchain (using smart contracts) out there

The following video (English) explains Loopring in three minutes:

 

Loopring’s Token: LRC

The Loopring token is based on the Ethereum blockchain and is therefore an ERC20 token. Miners for Loopring receive a small amount of LRC for all transactions made through Loopring. So each transaction for the Loopring protocol costs a small amount of LRC.

Token Symbol

LRC

Total number of tokens

1.37 billion

Price during ICO

$0.12

token type

ERC-20

Hard cap sale tokens

120,000 ETH

Funds raised during ICO

120,000 ETH
($45 million at the time)

Token Distribution

Currently 52.6% of all LRC is in circulation. This is a total of about 734 thousand pieces. A significant part (30.5%) of the offer is in the hands of the foundation behind Loopring. It is not clear why they kept such a large share of the tokens themselves. The exact distribution can be found in the image below.

 

 

Running ring Airdrop

The token that Loopring is using now, LRC, cannot be used on blockchains other than Ethereum. This is necessary if you ultimately want to arrange the mutual trade of coins for all blockchains. To enable this ‘swapping’ between blockchains, they will release the LRx coin in May. The x stands for the letter of the blockchain. To enable a swap with the NEO blockchain it becomes LRn and to enable it with Qtum it becomes LRq.

The LRx coins distribute them through various airdrops. You can read how you can participate in this article from medium.

Team

The Loopring team is impressive. It is a collection of top talent who have worked at large companies such as Google and PayPal. The three most important team members can be found in the table below.

 

Name

Position

Experience

Daniel Wang

Founder & CEO

  • Tech Lead & Senior Software Engineer at Google
  • Co-founder of Yunrang Information Technology Ltd.
  • Senior Director of Engineering at jd.com
  • Co-founder & CEO at Coinport Technology Limited
  • Senior Engineering Director at ZhongAn Insurance

Jay Zhou

Co-founder & Chief Marketing Officer

  • Brand Risk Management at PayPal
  • Co-founder at BreadBowl Co
  • Blockchain & Cryptocurrency Expert at Zhongan Tech

Johnston Chen

Chief Operating Officer

  • Chief Information Officer at 3NOD
  • Product Expert in Finance Industry

You can find the other nine team members on their team page. This includes one of the project leaders of Google Maps and a lot of experience from the financial world. What is striking and which is a disadvantage is that there are few developers among them. Moreover, there is a lack of blockchain experience in the team.

roadmap

The team works together to meet the following deadlines:

·         Running ring concept emerged

October 2016

·         Ring match concept verified

December 2016

·         White paper published

May 2017

·         Team created, token sale planned

June 2017

·         Token sale started

August 1, 2017

·         Token sale completed successfully

August 16, 2017

·         Loopring smart contract released

November 2017

·         Release LRC on exchanges

December 2017

·         Open source ring mining software

February 2018

·         Open source & launch wallet for Loopring Protocol

April 2018

Advisors & Partners

Loopring’s advisors are world class. Names that immediately stand out are Da Hongfei, founder of NEO, Hitters Xu, founder of Bitcoin Startup Camp and Nebula and Alex Cheng, Vice President of Baidu (the Asian version of Google).

Name

Current position

Xuefeng Li

CTO of Zhongan Tech, Angel Investor (Expertise in Token exchange and regulation

Da Hongfei

Founder of Neo, CEO at OnChain

Hitters Xu

Founder of Bitcoin Startup Camp and Nebula blockchain. Blockchain Director at Ant Financial

Alex Cheng

Vice President of Baidu. R&D Director at Google

Juxie

YOYOW Co-founder and board member at BitShares

Kevin Long

Founder of UnionPay Smart

Bai Shuo

Many different positions in the Chinese government

Partners

Loopring has already tied up some big names in the field of partners. We are currently working hard to make NEO and Qtum workable on the platform and they are working closely with these teams for this. Many large platforms and partners are expected to follow. The list of partners is currently as follows:

 

Popularity and community

For crypto projects, the importance of the community should not be underestimated. Without a community, as a crypto startup you are doomed to fail. With Loopring, this is perhaps even more important, as it absolutely depends on how many people are using the protocol. If no one takes advantage of this, few exchanges will want to work with them. For the West, it seems that Loopring can still grow in this. Compared to other crypto coins in the top 100, they still have few followers. It must be said that the majority of their community will mainly come from Asia.

Platform

Followers

Twitter

25k

Telegram

2.5k

Reddit

2.4k readers

Criticism

Loopring is a very strong project, but there are certainly still some criticisms that need to be taken into account. The biggest “problem” currently seems to be that there are very few developers with blockchain experience on the team. Especially in the top 100 of the crypto coins, there are few projects that have so little blockchain experience. In addition, LRC is an ERC20 token and therefore very dependent on Ethereum. Meanwhile, it is clear that Ethereum has significant scaling problems and this does not seem to be resolved for the time being. If Loopring really wants to become the all-encompassing protocol, the Ethereum blockchain will not be able to handle all these millions of transactions in the coming years. This can cause serious problems in the future. Another point of criticism is the relatively small amount of tokens currently in circulation. If these tokens enter the market in the future, this could push the price of the LRC tokens down. In addition, the foundation behind Loopring owns a much larger amount of tokens than we are used to with 31.5%.

 

Conclusion

Loopring (LRC) is a very promising project and we think the whole crypto world is waiting for the solutions they can offer. It is incredibly annoying for many crypto fanatics to have all kinds of different accounts on different trading platforms. In addition, it is very nice if you can trade from your own crypto wallet without first having to transfer control of your crypto coins to a trading platform. Loopring’s team is also strong, but the advisors in particular are truly world class. However, we should not forget the disadvantages of Loopring. Especially the fact that it is based on the Ethereum blockchain could mean that it will be a long time before we can really make full use of the protocol. This can be avoided if the team chooses to go for a more scalable solution in the future. All in all, we think Loopring has a golden future and it is definitely a coin to keep an eye on.

How do I buy Loopring?

Buying a running ring on Bitvavo is a piece of cake. Within minutes and for less than a euro you can already be the proud owner of LRC.

  1. Register here for free at Bitvavo
  2. Verify yourself by clicking on your name in the top right corner and then go to ” Verification “.
  3. Transfer money via iDeal. You do this by clicking on ” Deposit Euros “.
  4. Then enter the amount and choose iDeal as payment option so that the money is in your Bitvavo account within a minute. Then click on “Pay”.
  5. If you click on ” Overview ” afterwards, you will see the money.
  6. Find LRC, click on it and then press “Buy”.
  7. Invest the amount you have in mind in LRC.
  8. Congratulations! You have purchased LRC!
    Don’t forget to save your username and password

 

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