The lack of confidence on the administrative and technical methods of existing exchanges have kept institutional investors and large holders away from the cryptocurrency ecosystem.
The opaque outlook of these exchanges, coupled with total characteristic exoneration of themselves during periods of mishap prove to be too much risk to bear for these large investors.
A suitable environment for large investors
Despite the heavy potential of the industry, as noted by Kay Van-Petersen, an analyst at Saxo Bank, who projects that within 10 years cryptocurrencies will account for 10% of the average daily volume of fiat currency trades, with Bitcoin alone accounting for a 35% share, which translates into 175 billion dollars of bitcoins being traded daily, the current growth rate of the industry is still below expectation.
This development has necessitated the creation of a bank-backed exchange where the assets of big investors can be protected, thereby making Bitcoins secure just like fiat currency. Hence, Legolas Exchange, a demonstrably fair, premium centralized exchange using decentralized blockchain technology.
The mission of Legolas is to create a fair and suitable environment for large and institutional investors to invest in and manage cryptocurrencies and other digital assets. To this end, the company incorporates novel blockchain technology, guaranteeing fairness and transparency of the order book, as well as tools and systems catering to the security, auditing, analytical and reporting needs of premium clients.
Away with the old, here is something new
Some of the complains that have become very common about existing exchanges so far include their lack of transparency and the possibility of some dishonest actions towards members of the community. These are fundamental issues that go a long way to determine the participation of people and institutions within these communities.
With the developmental forecast and growth rate of the cryptocurrency market, large financial institutions are willing to participate in the crypto investment circle. This can only be made possible when there is a reasonable level of security and transparency to protect their interests.
With Legolas Exchange these investors would experience a trustworthy, demonstrably fair and bank-backed premium exchange where traders and investors, small and large, can transact without doubting the integrity and robustness of the platform or its order management system.
This system is achieved by Legolas implementation of a full stack exchange built by fintech insiders who understand the needs of financial institutions eager to enter the crypto market, the creation of a new decentralized blockchain protocol that guarantees full transparency and prevents front-running and market manipulation and a backing by Luxembourg based BanQix, meaning that Legolas users will have a Bitcoin bank account, making bitcoins as secure as fiat currency.
A partnership that protects
Legolas’ partnership with Luxembourg based BankQix, will enable customers to safely and securely deposit, withdraw and convert large sums of both fiat and crypto currencies. In addition, BankQix and Legolas will publish all operations via the Bitcoin blockchain and ensure complete transparency. The option to convert large amounts of fiat currencies into cryptocurrencies, and vice versa, will be a unique and welcome development for the community and a first step in unleashing vast new inflows.
While the above mentioned partnership serves as a convenient and risk aversive procedure for investors, the adoption of blockchain technology as the transaction platform further emphasizes the transparency of the Legolas exchange. This is a combination that will definitely wet the appetite of large investors who have been sitting on the edge, biting on their nails and waiting for the right wind to sail into the world of opportunities present in the crypto ecosystem.
“All operations performed by Legolas and BankQix are engraved in a public blockchain. The immutability, transparency, irreversibility, and anonymity properties of the blockchain ledger underpin the exchange and make it a safer more trustworthy place. Legolas’s parallel blockchain-based hash log prevents Legolas from inserting an order in front of a customer’s trade instructions. As a consequence, front running is impossible. The platform is also designed to be easily audited by regulators and provide proof of reserve and audit reports in real time.”
A self-regulated system
So far, governments and regulatory agencies have been caught in-between adopting the novel Bitcoin and blockchain technology, considering its numerous promises for development and efficiency of data management and transactions. However, given the responsibility of these institutions to protect its citizens from systems that may be hurtful to them, the opaque nature of the existing regular exchanges has led to some governments kicking against them.
The recent ultimatum by the Chinese government towards all exchanges operating within its borders, ordering them to close is a typical example of such actions.
Therefore, the Legolas example is a self-regulated system where all transactions and procedures are open and transparent to asset holders and traders, the security of investments are bank-backed in fiat, and the company does not avoid its responsibilities to investors.