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Despite the increasing number of investors who recognize the value of Bitcoin and other cryptocurrencies as a long-term investment, high-profile investors have held back on investing massively in this market and hybrid exchanges like Legolas want to change this.
As the crypto ecosystem continues in its exponential growth, Legolas, a hybrid exchange which combines the centralized characteristics of regular banks and the decentralization of blockchain technology, has introduced a robust platform that guarantees the security of investments while offering a transparent and real-time auditable solution to all classes of investors.
Legolas is set to play a huge part in inviting institutional investors and large asset holders into the crypto ecosystem. The company plans to achieve this by exorcising the fears hitherto borne by these major players.
Why Large Investors Have Stayed Away From Crypto Exchanges
Several investors, especially those of institutional qualities have refrained from participating within the crypto space because of the nature of existing exchanges within the system.
The non-transparent nature of operations of existing major exchanges makes it uncomfortable for a lot of large investors to stake their funds within the industry. There have been suspicion of dishonest internal activities among some of these exchanges, with accusations of possible manipulations or unethical trading to take advantage of investor funds within their coffers.
Another discouraging factor that have kept such investors at bay is the unpleasant history of how most of these exchanges have responded to their customers in the event of a breach of their platform or a hack. Customers are usually left out in the cold at such moments to lick their wounds.
The above mentioned weaknesses and more are the aspects that Legolas have embarked on resolving, thereby creating a conducive environment for the major investors who have until now remained on the sidelines.
An Institutional Solution
According to Kay Van-Petersen, an analyst at Saxo Bank, 10 years from now 175 billion dollars of bitcoins will be traded every day. Legolas is prepared to offer the appropriate platform for a huge part of such volume to be traded reliably and efficiently.
To achieve its goals, Legolas is partnering with Luxembourg based BankQix. This partnership will enable customers to safely and securely deposit, withdraw and convert large sums of both fiat and crypto currencies. The bank-backed system will offer theft-proof wallets, where Exchange users will have secured deposits in both fiat and crypto currencies at BankQix.
In parallel to the expected fiat accounts that European banks can offer, Legolas Exchange customers will have access to accounts in Bitcoin, Ether, and other digital assets. This unique and novel partnership with BankQix will make Legolas Exchange the most attractive exchange for traders as well as financial and institutional investors.
An Effective Hybrid System
Establishing a blockchain technology on top of its centralized platform is a development that will permit Legolas to explore the intrinsic properties of the blockchain to offer a transparent, immutable and completely auditable platform.
“Legolas Exchange uses hash properties to determine the place of an order in the orders queue before revealing the contents of the order. To achieve this objective, a user’s order is first hashed. The hash is then published in a public blockchain. Once the block is validated the order sequence is engraved into the blockchain. At this point, it’s impossible to insert an order into the order queue. However, the content of these orders are still unknown to all. Thus, the temporality of the orders is strictly respected and the possibility of front running is neutralized. Legolas Exchange is the first demonstrably fair exchange and is wholly in compliance with transparency financial standards.”
Having conquered the two major worries of major investors which are the security of investment and transparency of operational processes among other basic aspects, Legolas is prepared to solve huge problem of uncertainty that is currently existing in the industry.
Dominating by Service
Even though existing exchanges have remained in service, predictably due to lack of choice of anything better, huge investors for whom such risks are too much to bear have stayed away. It is these investors whose volumes could run into trillions of dollars that will ultimately appreciate the service being rendered by Legolas.
As the people become more concerned about the safety and security of their assets, influx unto the Legolas platform is expected to soar unto unprecedented level as the organization prepares to become the leading crypto exchange in the world.