In a recent audit performed by Digrate, experts have decided that LIQNET has an A2 score for their project. The audit reviewed valuable information about the characteristics of the brand and said that this brand has the potential for a long-investment return. At the moment, LIQNET is in the developing stages of their cryptocurrency platform that will collect their liquidity from other platforms but offers a better pricing.
Right now, the crypto exchanges that lead this industry show that over $500 billion is exchanged monthly, making it an incredibly lucrative endeavor. The most profitable exchange is Binance, which leads the monthly trade volume at $130 billion. At the bottom of the top ten platforms, HitBTC still manages to contribute $19.5 billion to that pool. LIQNET’s role is to take all the liquidity to help consumers find the most gainful option for them.
— LIQNET (@LIQNET_official) May 28, 2018
One of the main ways that LIQNET sets its project apart is with their network called the Liquidity Exchange Network (LEN). This network collects all the information about the orders on the various platforms and compiles it into a single order book. The technology used to create this service is what makes it so competitive, since it has the power to control how the market it swayed. Furthermore, it helps to condense the liquidity of the industry, rather than leaving it scattered like it was before. The project will not cover every single platform on the market, but the top 15 ecosystems in the industry will be the first to be added.
Despite the advanced technology, LIQNET is still up against several competitors, since it combines the details of multiple platforms onto a single API network. They compensate the platforms with a commission for participation, while each trade still goes through the individual networks. The only project that is close to the services that LIQNET offers is B2BX. However, B2BX primarily works with the changing prices between BTC and ETH, rather than 15+ platforms.
During the audit, there were still some weak spots, which simply indicates that the brand has areas they should focus on. One of the key issues cited is the brand’s lack of license for money transfer services and the use of fiat currency. Luckily, this concern will be eradicated as the team gets their permits within Japan and Estonia this year.
Security was another concern in the audit, since clients do not keep their funds in an individual location. To view the entire audit with all concerns, consumers can visit https://digrate.com/uploads/ico_report/Liqnet_eng_5BCRC8J.pdf.