Fintech company, Quoine, has launched Liquid. According to the next-gen financial services company, Liquid is a crypto-based one-stop trading portal. Being a one-stop trading portal, traders can access all cryptocurrency exchanges in the world via Liquid.
Also, the management made it clear that the platform will allow users to match cryptocurrency with multiple transactions. In effect, this means that the matching of LTC/BTC, BTC/ETH, and LTC/ETH is possible. By doing so, the liquidity of cryptocurrencies on Liquid increases.
The Objective of Liquid
Basically, the trading portal is expected to offer a World Book technological tool. The tool will aggregate the prices and orders on multiple exchanges into a book. Thusly, the book itself will be liquid and tradable. With that book readily available on the platform, users can place orders of currencies of their choice.
Beyond doubt, Liquid has an objective. That noble objective is to solve the problems of fragmented trading and lack of cryptocurrency liquidity. When Liquid effectively eliminates these flaws, the virtual currency market becomes much better for it. Liquid is also expected to encourage a new wave of crypto-asset traders to buy and trade cryptocurrencies.
Meet Quoine, the foremost cryptocurrency exchange that Japan’s investment watchdog licensed. After operating under the obtained green-light from Japan’s Financial Service Authority (FSA), Quoine started operating two platforms, Qryptos and Quoinex. Unarguably, these platforms have become the most advanced in the world by all standards. The development of Liquid will see Quoine merge both its trading platform and exchange into the portal. This way, the liquidity of digital currencies traded on those platforms increases.
With an annual transaction volume worth $50B USD, Quoine is one of the world’s biggest crypto-exchanges. Liquid’s development was funded through a 2017 Initial Coin Offering (ICO) that saw Quoine raise $105M USD.
The Challenges of the Current Cryptocurrency Economy
While it’s commendable that cryptocurrency exchanges offer a wide range of cryptocurrency pairs, there’s a downside to it. The cryptocurrency market is full of fragmented trading landscapes. Sadly, this fragmentation has an implication: price and volume discrepancies.
Worse yet, this has deteriorated the currency silos. The incessant shifts of liquidity and the best price on exchanges have caused problems for traders around the world. Inevitably, inaccessibility and volatility became the order of the day. Indeed, traders struggle to deal with them all the time. There’s no doubt at all that cryptocurrency market needs stability as soon as possible.
Indeed, Liquid is coming aboard to improve the cryptocurrency milieu. To this end, the innovative trading portal will pave the way for a less volatile cryptocurrency, says the co-founder and CEO Mike Kayamori. To buttress the impact that volatility has on the market, Kayamori cited the example of BTC/USD. He said that BTC/USD volatility index sits at 3% of the whole year average. However, it surged by 8% in the first quarter of 2018, Kayamori stated.
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