Legolas Exchange claims to be the world’s first provably fair premium exchange. Find out what that means today in our review.
What is Legolas Exchange?
Legolas Exchange, found online at Legolas.exchange, is a provably fair premium exchange built on a decentralized ledger and a proprietary platform. Traders at Legolas control their own coins. In fact, Legolas has a partnership with Ledger that allows users to trade from their Ledger devices: you remain in control of your funds throughout the trading process, just like any other decentralized exchange.
However, Legolas isn’t a fully decentralized exchange. It’s a hybrid between a decentralized and a centralized exchange. There’s a decentralized ledger and a proprietary, centralized platform. That means they can create a fair and secure trading environment where all types of transactions – intra-chain, cross-chain, and crypto/fiat – are executable.
Legolas Exchange has scheduled an ICO for February 2018. The project’s development is led by a France-based team of developers.
How Does Legolas Exchange Work?
Today, the internet is home to hundreds of cryptocurrency exchanges. Most exchanges are centralized: you deposit funds into the platform – like by transferring USD from your bank account – and then buy or sell currencies from within your online wallets.
A growing number of exchanges, however, are adopting a decentralized model. With a decentralized exchange, users remain in control of their funds throughout the trading process. You don’t need to deposit funds into a trusted central party. Instead, the trade is completed instantly: you receive the opposite party’s private key the moment the opposite party receives your private key.
Legolas Exchange is a hybrid between both of these models. It combines features of centralized and decentralized exchanges. Legolas did this in order to guarantee full transparency and prevent front-running and market manipulation, among other shady activities.
The end result is an exchange with fiat support, strong authentication, simplicity, transparency, and fairness.
And, because Legolas Exchange has partnered with Ledger, it’s easy for customers to securely store their cryptocurrencies in a reliable hardware wallet.
Legolas Exchange also has a partnership with Makor to ensure scalable, reliable, fast, and secure large fiat deposits and withdrawals. One of the issues with other decentralized exchanges is that fiat currency withdrawals and deposits can be difficult. With Legolas Exchange, that’s not an issue.
What Problems Does Legolas Exchange Seek to Solve?
Why do we need yet another cryptocurrency exchange? What unique problems does Legolas Exchange seek to solve? The official website addresses major problems in today’s crypto industry:
There’s No Existing Platform for Institutions to Access Cryptocurrency:
Despite the increasing number of investors and traders participating in cryptocurrencies, high-profile investors have held back on investing massively into the market. They’re held back by problems like fund security, verifiability, honesty, and fairness, along with a lack of efficient reporting tools. Opaque and dishonest exchanges have undermined trust in the crypto community. This has led to all of the problems below.
Millions of BTC have been stolen since the network launched in 2009.
Without oversight or regulation, many of today’s exchanges are suspected of market manipulation.
No Large Fiat Transactions:
Low maximum amounts, high fees, and long delays for fiat transaction make large-sized trades tedious.
Many exchanges are opaque and perceived to be free from accountability. They can operate without periodic reports or independent audits.
Decentralized Exchanges Are an Unrealistic Solution:
Many people have proposed decentralized exchanges as a solution to the problems above. However, decentralized exchanges are an unrealistic solution, according to the Legolas Exchange team.
On decentralized exchanges, it’s impossible to trade between different blockchains, or to trade between fiat and cryptocurrencies. Considering that trades within the same blockchain only represent 3% of all daily transactions, this is a big issue.
Who’s Behind Legolas Exchange?
Legolas Exchange is being created by a France-based team of developers. Key members of the team include Frédéric Montagnon (CEO), Julien Romanetto (COO), and Ouziel Slama (CTO).
Montagnon is an accomplished entrepreneur and investor with 20 years of experience. He has founded and exited 4 companies for a total value of more than $400 million USD. He’s also ranked as the 7th largest startup investor in France, and has been involved with the cryptocurrency industry since 2013.
The Legolas Exchange LGO Token Sale
The Legolas ecosystem is fueled by the LGO token. Fee orders and other paid services provided by Legolas will be paid in LGO. LGO tokens are available during a pre-sale and ICO. The company is accepting BTC during the ICO.
Of the total supply of tokens, 60% is being sold during the pre-sale and token sale, with the remaining tokens dedicated to a reserve fund (20%), advisors (5%), and the team (15%).
It appears most of the token sale is taking place in the form of a pre-sale to large institutional investors. Some websites are reporting that the token sale will be open to the public from February 1 to February 15, 2018, although the official website doesn’t specify a date.
Legolas Exchange LGO ICO Conclusion
Release of the Legolas Exchange beta is scheduled for February 2018, while the full public release is scheduled in Q3-Q4 2018. The goal is to create a provably fair exchange that combines the best features of centralized and decentralized platforms.
To learn more about the hybrid centralized/decentralized exchange, visit online today at Legolas.exchange.