General Idea
Loandex wants to create a decentralized cryptocurrency exchange, which would be based on the blockchain technology. Users could benefit from features blockchain provides like anonymity for example. Such exchange could process almost instantly any trades, while the traders could benefit from zero fees, therefore maximizing their potential profits and liquidity in the market. The exchange will have both web and desktop version and list around 10 currencies at launch, while new trading pairs would be added after votes and suggestions from users. Moreover, the exchange will be the first DEX to offer margin trading.
Decentralized Exchange
A decentralized exchange is an exchange that does not rely on a third party to hold funds. Trades occur directly between users using an automated process. This type of exchange is in contrast to the centralized model where an exchange issues temporary funds in exchange for a user’s deposit; the temporary funds can be freely traded on the exchanges platform and converted into ether whenever the user wants to make a withdrawal. The most notable advantages are trustless services, anonymity and privacy and stability of the sole platform with no downtimes.
If you want to learn more about decentralized exchanges you can read our article on this topic.
Reliability of the platform
What Loandex wants to offer that would make it possibly better than regular and centralized competition is the reliability of the platform, which can significantly impact traders’ profits. The developers have noticed that one of the common problems among exchanges are sudden technical difficulties and shut downs without any warning. The traders get frustrated as they cannot take benefit from price changes and market movements during this time. Therefore, apart from stability given by the sole blockchain solutions, Loandex servers are able to handle more than 120 million visitors per month. They want to avoid situations like the one which happened to Coinbase, where the trading halt was the reason for unprecedented higher volumes of trade. Moreover, this incident also resulted in a drastic drop in Bitcoin value.
Zero Trading Fees
The feature which will most likely bring most of the traders is the fact that the trades within the platform will include zero fees. This opens open for numerous possibilities and trading strategies, as users can try to benefit even from the smallest price changes and market fluctuations. As more users will come to the platform encouraged by the zero fees, there will be more buy and sell orders, therefore the sole trades will happen more often and easier.
The Token
The main currency to be used within the platform is LDX token. It will be used for all of the payments for services on Loandex, and because of this token it will be possible to trade currencies without any fees. LDX is Ethereum based with the ERC-20 standard, which means it can be stored in most of the popular Ethereum wallets. There is a strict cap of 1 billion tokens to be ever released.
The developers have also come up with a burning strategy in order to increase token value for token holders. The platform will hold regularly votings and polls to decide about listing new coins. Each vote during the poll for coin listening will cost 0.1 LDX and the tokens paid for voting will be send automatically to a burn address. There will be also a buyback program run by the platform.
ICO Phase
There will be two phases where the tokens can be bought. The first one, acting as a pre-sale will last only 21 days starting on the 7th of May, 2018. 100,000,000 LDX will be offered at a very cheap price of $0.01 per LDX. If the pre-sale turns out to be successful the main stage will start on the 4th of June. 600,000,000 LDX will be sold at a cost of $0.02 per LDX. This phase will last for a month.
The Team
The team behind Loandex is relatively small, however they seem to divide the work and responsibilities very well. Most of them are familiar with cryptocurrencies and have previous experience working on related blockchain projects. There are programmers and developers specializing with blockchain technology. For a project to be successful a strong marketing team is also essential, therefore there are advertisement specialists with community and social media managers. Among advisors there are people working with Crynet Display Network or Blockvisory. All of the members have their contact info provided with LinkedIn profiles to check their experience and skills.
Final Thoughts
With the rapid popularization of cryptocurrencies and blockchain technologies, we’ve seen many exchanges being introduced into the market. Currently, the leading ones are mostly centralized and struggle with technical difficulties and problems which can efficiently be solved with the usage of blockchain technology. If the developers manage to deliver what they are promising, the sole idea of offering trades without any fees will most likely encourage many traders to try out Loandex platform, as they can simply make more money there.