Quoine a fintech company focused on blockchain technology, has launched Liquid today. Liquid is a new crypto trading portal that the clients can use to access a global network of many different crypto exchanges.
This way, they can use the platform to match trades across many different decentralized platforms and find trades. You can, according to the reports, create a total of three different pairs: BTC/SGD, ETH/SGD and BTC/ETH.
One of the big expectations of the developers is that they will be able to actually increase the liquidity of the market a lot by using this technology.
During some new stages of the product, Liquid is expected to offer a World Book tech that will aggregate a number of orders from many exchanges from the whole world and match them on the client’s request.
An Effort To Fix A Problem In The Market
Part of the reason why this company was created was to fix what was considered by its creators as one of the main problems of the crypto market that are is fragmented existence. This fragmentation, instead of causing decentralization, only causes lack of liquidity and makes the trades slower and with higher costs.
You will be able to combine the prices and liquidity of many different markets and place your orders. Real decentralization, according to the company, will be really achieved by actually trading with whoever you want without restrictions of any kind.
The founder and CEO of Quoine, Mike Kayamori, has commented on the launch. He affirmed that crypto markets need stability and that the volatility index has been above 3% per 30 days for most of the year. Only liquidity will pave the way to a future in which cryptos are not so volatile and can actually turn into a real safe market instead of a speculative one with high risks.
According to Kayamori, Liquid will be more than just a crypto exchange, the idea is to create something that can really act as an all-in-one platform and finally bridge the gap between traditional and token economy to make the financial market stronger.
As the barriers between the platforms can be overcome with Liquid’s technology, volume and price discrepancies will start to fade and the whole economy will be considerably more stable. The beginning of the year is a great example of how unstable the market can be during the current conditions, so it is important to create measures and defenses against high volatility rates.
How Will The Liquid Platform Work?
Basically, the platform will use a matching engine that will connect orders to create a healthy trading book. It will have its internal and external books. The internal one will have FX-adjusted orders for everything that is placed on the Liquid platform itself.
The external book will be the one that will aggregate the results from all the other exchanges that exist in the world and that can be traded internationally with the holders of the tokens from Liquid.
Liquid will use three technologies to create this system. The first one is the matching engine, which will be scalable and able to make millions of transactions in seconds. The second one is the cross currency conversion engine, which will allow for the automated conversion of the trading pairs that the users want to trade. Finally, there is the smart order routing, which is used to keep a low-latency real-time connection with the exchanges.
After the launch, the company will refine and introduce new features. Some of them will be upgrades for iceberg orders, view unrealized penalties, allow holders to earn interest from assets and match book upgrades. Also, the ICO Market 2.0 will be launched to let users access and invest in token sales directly from the platform.
Other features that will be implemented in the future are the use of credit card to fund accounts, quicker deposits and withdrawals, mobile app, new Know Your Customer procedures and external aggregated order book.
The platform will be fueled by a token called QASH, which will grant discounts and benefits when used by the clients to make trades.
Quoine was the first global crypto exchange to be licensed in Japan by the Financial Service Authority because the company is heavily focused on Japanese markets, which already gives some credit to the creators of the company for their effort of making the exchange regulated there.
The company has offices in Japan, Singapore and Vietnam. It combines a strong network of local partners with international banking and financial products.
Its existing platforms, Qryptos and Quoinex, are among the most the finest platforms in the market. They will also be integrated into Liquid when the portal is finally launched. Quionex was launched in 2014 and Qryptos in 2017.
The company had an Initial Coin Offering (ICO) last year and it was able to get $105 million USD to fund the creation of the Liquid platform. At the moment, the company processes a total of more than $50 billion USD in transactions per year.