Cryptocurrencies, and, by extension, blockchain technology itself, is founded on the concept of decentralization. The massive levels of success of highly popular cryptocurrencies such as Bitcoin is largely due to their decentralized nature, which eliminates the need for third parties to facilitate trust between individuals performing financial or business agreements or transfer.
Despite the growing ubiquity of decentralized currencies and platforms, one major aspect of the cryptocurrency market remains centralized: exchanges. Exchanges are a critical element of the cryptocurrency ecosystem, and are used by cryptocurrency investors to trade cryptocurrency tokens, as well as exchange cryptocurrency for fiat currency.
While cryptocurrency exchanges may be critical, they are also extremely susceptible to attacks due to their centralized nature. In order to use a cryptocurrency exchange, traders and investors are required to transfer cryptocurrency funds into a hot wallet that, in most cases, is hosted and managed by the exchange itself.
This practice has led to the loss of millions of Bitcoins and other cryptocurrencies over the years, with high profile hacks such as the Mt. Gox hack costing cryptocurrency investors millions of dollars. The issues presented by centralized exchanges also manifest in other forms, such as Coinbase’s recent decision to freeze the wallets of users in Hawaii and other states of the US in which the platform is unable to meet legislative requirements.
Decentralized exchanges negate the issues presented by centralized exchanges by distributing the exchange itself across the blockchain, but these solutions suffer from problems of their own. Decentralized exchanges commonly suffer from high latency issues, high costs, and are unsuitable for high volume trading.
A new initial coin offering, Leverj, aims to change this by fusing the best aspects of exchange decentralization with a centralized core system to create a hybrid decentralized/centralized exchange that delivers the best of both worlds.
In this article, we’ll take a look at the Leverj ICO and find out how it aims to disrupt the cryptocurrency exchange ecosystem in order to help you determine whether it’s worth investing in.
What Is LeverJ?
Leverj aims to to combine the best aspects of both centralized and decentralized exchanges by eliminating the points of friction each solution creates. The Leverj platform focuses on derivative trading, and aims to provide a comprehensive support ecosystem and a richly featured, streamlined user interface.
The Leverj platform will also facilitate decentralized identity features, and implement provable audit processes.
How LeverJ Works
Instead of decentralizing the entire exchange architecture, Leverj is aiming to create a trade-off between the most attractive and efficient elements of centralized and decentralized solutions. The Leverj exchange will decentralize safety-critical functions such as custody, while centralizing speed-critical functions such as order matching.
The LeverJ ICO
The Leverj platform will operate on LEV tokens. During the Leverj ICO, 250,000,000 LEV will be released, of which all will be for sale at a conversion ratio of 1 ETH to 3,000 LEV. Contribution will be capped at 83,333 LEV for each investor.
1 billion LEV will be created in total, of which 400 million will be available for purchase over the duration of the ICO. 200 million LEV will be reserved for founders, while 300 million will be reserved for liquidity and operations. Lastly, 100 million LEV will be reserved for partners.
Leverj have made a comprehensive white paper available regarding their project, as well as provided detailed information about the team behind the platform.
The Leverj solution is an interesting platform that aims to combine the best elements of both decentralized and centralized exchanges. If you’re looking for an unique approach to the practice of decentralizing exchanges, the Leverj ICO is worth keeping an eye on.