Hacking attempts are nothing new for the cryptocurrency industry, even when it comes to exchanges, the central entities that deal in these digital assets on a day to day basis.
Cryptocurrency exchanges have been falling prey to cyberattacks over the past few years, causing traders and these companies themselves to suffer great losses..
The most apparent reason for this comes to be, that while the exchanges operate by trading highly secure cryptocurrencies, they run their operations by using dated methods and systems that are susceptible to hacks.
However, the increasing number of decentralized exchanges aims to change this phenomenon.
To explain the functionalities of decentralized exchanges: they perform the same functions as the usual cryptocurrency exchanges, but instead of using centralized and old systems that can be hacked by proficient yet malicious sources, decentralized exchanges operate on the security and efficiency of blockchain technology, which makes them highly secure against any sort of cyberattacks.
Following this trend, another decentralized exchange to hit the market is the London Crypto Currency Exchange (LCCX), which aims to provide cryptocurrency traders with a safe yet fast way to perform their day to day activities without having to worry about losing their assets. However, this exchange comes with the added advantages of low transaction costs and a highly efficient infrastructure.
The platform is currently holding its initial coin offering (ICO) with its native token, dubbed the London Exchange Token (LXT).
So let’s go through the details of this project and learn more about it in order to determine the effectiveness of its value proposition.
Is there a use for another decentralized exchange?
With the benefits of decentralized exchanges in mind, one has to point out that the idea of a cryptocurrency exchange operating on blockchain technology is not exactly novel anymore.
Between widely used decentralized exchanges such as IDEX currently performing their operations; new platforms such as Switcheo gaining rapid popularity; and under-development exchanges such as NEX on the way to going live, the decentralized exchange segment seems to be growing overpopulated. Both Switcheo and NEX run on the NEO blockchain and are both NEP5 tokens. Although NEX hasn’t launched yet, it’s definitely an upcoming NEP5 project to look out for.
That being said, the segment has not seen a truly disruptive decentralized exchange that could rival its centralized counterparts such as Coinbase or Binance in efficiency and product offerings.
However, it is also true that decentralized exchanges are where the future of cryptocurrency trading rests, since Binance itself announced in March 2018 that it is currently developing its own decentralized exchange which will run on it’s own custom blockchain known as Binance Chain.
That is why, there is still some space and need for a decentralized exchange that operates in a majority of tokens, handles its customers’ assets with the utmost security, and provides a wide variety of services while ensuring that it is not violating any regulations to prevent getting its stakeholders in trouble.
And those are exactly the requirements that LCCX resolves to meet.
More about london crypto currency exchange (LCCX)
As the name suggests, LCCX is a London based entity. It aims to set itself apart by not being a run of the mill cryptocurrency exchange, but by establishing itself as a financial institution that will operate on a blockchain platform and will also follow the complete set of rules and regulations imposed by its region of operation.
The result on paper: customers being provided with technologically advanced services while having the peace of mind of operating in a lawful environment.
Apart from using blockchain for maximum security and efficiency, LCCX aims to operate under the regulations of the Financial Conduct Authority (FCA), the main financial regulation watchdog in the U.K. By doing this, it wants to ensure that it is performing its operations while complying with the law, and thus establishing cryptocurrency trading as a viable business operation within the region.
LCCX will list more than 200 cryptocurrencies after its launch, and also mentions that it is developing its own matching engine on its blockchain. This matching engine is projected to perform over a million trades per second.
Due to having its own blockchain platform, LCCX also promises to provide an insurance-covered exchange fee of no more than 0.5 percent per trade.
The exchange will also hold 60-75 percent of its users’ assets in cold storage at all times, so that it could ensure that they are safe from hacking attempts.
In addition to having its customers’ funds insured against hacks, LCCX also swears by transparency and lists its complete address and contact information on the website to establish its accountability.
Along with that, the exchange also aims to provide next-level customer support by providing services such as live chat for its customers’ convenience. Furthermore, it will also provide an initial coin offering (ICO) underwriting service to facilitate the launch of new coins through its platform.
More about the LXT token
The LXT token is an ERC 20 token, and LCCX aims to launch 100 million LXT through the Ethereum network.
The token will be priced at $0.15, with the ICO ending on April 30, 2018 and the tokens being distributed by May 7, 2018.
The token will be utilized to supplement the exchange’s operations such as trading and withdrawal fee, as well as the payout for referrers, and bonuses given away in competitions.
Out of the 1 million tokens that will be created, 60 percent will be distributed during the ICO; with 18 percent going to the LCCX team; 14 percent allocated for advisors and early investors, and 8 percent being reserved for bounty and referral programs.
The 18 million tokens allocated for the LCCX team will be vested over a period of 18 months, with 1 million tokens being released to the team every month.
Furthermore, every three months, LCCX will be using 15 to 25 percent of its profits to buy back LXT from the market and burn it. The burning will take place to slowly decrease the total supply. This practice will end when 50 million LXT remain in the market.
The post Forget The London Stock Exchange, Say Hello To The London Cryptocurrency Exchange (LCCX)! appeared first on The UK's #1 Cryptocurrency News & Publications Site- bitGuru.
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