In a world full of innovation and origin of new methods, cryptocurrency has brought its share of worldwide advancement in this race of revolutionizing online exchange, hence the new system made the public demand a proper Loopring review for which we are here.
In this system of cryptocurrency, both centralized and decentralized exchanges are being used among which centralized system was of preference by a number of platforms until recent times, when it showed some drawbacks.
To overcome some of these drawbacks, a decentralized system was used that gained enough popularity to be used widely but was again found with some non-negligible setbacks.
These factors initiated the formation of something new, Loopring, which was soon recognized as a modernized and hybrid form of centralized and decentralized modes of exchange. Loopring is a layer 2 Ethereum scaling solution that helps rollup multiple transactions and increase throughput on the Ethereum blockchain.
This new idea of eliminating specific drawbacks by combining advantages of two different crypto exchanges bought mass recognition and attracted platforms worldwide.
Today, this has become a topic of attraction for many, which you as well would be wondering by now. So, if you aim to learn how it was executed, what makes it unique and much more, then you are in the right place all set to learn everything in this Loopring guide.
What Is Loopring?
In this Loopring review you will get to know that Loopring serves as a method of crypto trade which implies both the factors of centralized and decentralized exchanges. The main system of its execution revolves around the order matching mechanism of centralized dealing along with on-blockchain order settlement of the decentralized path.
The main system of Loopring runs through Ethereum and allows an automated assets trade across exchanges through this path. In easy terminologies, any platform or investor that uses modern smart contracts like Ethereum will be able to execute their exchange through Loopring and benefit from it.
It works on the mechanism of pooling orders that are sent to this network for future exchanges (which can be multiple as well). This allows access for the investors to explore best prices available on a bigger level, in the whole market.
Who Founded Loopring?
Loopring was founded by Daniel Wang who is also its current CEO. Daniel Wang has formerly been associated with Google as a senior engineer and JD.com. According to the founder, the idea of Loopring originated when he was working at his former corporation.
When Was Loopring Crypto Created?
The background work to establish the Loopring protocol was started in 2014, when Daniel Wang first founded a startup that introduced centralized exchange protocol which promoted sale and purchase of BTC/LTC etc but wasn’t much of a success.
Later in August 2017, they launched an ICO which was quite successful, but they had to refund most of the raised Ether due to China’s regulations. With what they were left with, Daniel Wang with his team continued their developing program and went forward with hiring a professional team of engineers.
As a part of this Loopring review, it is crucial to specify the investors so that current investors can draw an idea which serves as a relatable exchange option for them in future.
Since its foundation until now, Loopring has been funded by 5 investors in total which include G2H2 Capital, NEO, Eden Block, Fundamental Labs, and Obsidian Capital. Among these 5, G2H2 and NEO are the most recent ones to come on board.
ICO stands for Initial Coin Offering which is a pathway through which funds are raised for a newly launched cryptocurrency.
The term ICO can be mistaken for IPO which is an acronym for Initial Public Offering. Both routes are meant to raise funds and are hence similar to each other, but IPO generally revolves around the idea of fundraising for a new company that steps into the stock market.
Loopring uses ICO as their funding rounds to raise higher amounts in lesser time duration. The collected proceedings are being used to establish decentralized exchange which will eliminate centralized system disadvantages.
Is Loopring Decentralized?
The most frequently asked question regarding this subject is whether Loopring follows a decentralized protocol or not. And to answer that this Loopring review has highlighted all the aspects to clarify it all further.
Basically, the idea of Loopring stock is a hybrid of centralized and decentralized exchange policies to exclude specific disadvantages of each. But on the other hand, this protocol provides leverage of promoting decentralized exchange which allows assets exchange and also permits non-custodial, and order-book based exchanges.
In short, this protocol isn’t a decentralized exchange itself but facilitates its route through ring sharing and order matching.
How Does Loopring Crypto Work?
As a general idea to understand the basic functionality of Loopring Crypto, it’s important to understand the processes and domains it covers. Not only does it feature exchange protocol, but it also runs an automated execution system through Ethereum.
Moreover, loopring working mechanism is based on the following three simple protocols:
- It creates pools of orders which are being received on this platform.
- Secondly, the platform establishes off-chain communications of these orders through order books including various exchanges.
- On the other hand, in this protocol decentralized features are allowed to generate exchange functions.
Hence both decentralized and centralized exchanges can benefit from Loopring protocol to generate as many exchanges as possible for maintaining liquidity.
How Many LRC Tokens Are There In Loopring?
LRC is defined as an ERC-20 token which is an open platform, non-custodial type of exchange protocol.
LRC tokens serve as fuel of Loopring in maintaining exchange and trade. The average circulating amount of LRC coins reported for Loopring has been 1,221,332,445 while it can top as much as 1,374,513,896, being the max recorded limit.
What Makes Loopring Crypto Unique?
Generally, the bitcoin exchange works on the Layer 1 network. But the main purpose of Loopring protocol encloses the idea of Layer 2 scaling solution, which in short means to create solutions for helping to increase the credibility of Layer 1 by dealing with transactions off-chain. This also affects the transaction speed overall.
Hence Loopring plays a vital role as Layer 2 Ethereum scaling solution which is revolutionizing exchange policies.
Is Loopring Crypto A Good Investment?
The first and foremost the commonest question that gets asked is if Loopring Crypto is a good option for investment or not. Well, with the current and future statistics prediction, LRC might serve as a rising trend on putting your money for investment and making more of it.
What Is a Loopring Coin?
In this loopring review so far, one must wonder what basic structural unit does loopring possess. So for that clarification, you must know that Loopring coins are the main building unit of Loopring protocol for exchange and payment of this domain.
There are three main tokens circulating in Loopring known as LRC, LRN and LRQ among which LRQ is yet to be released.
Is LRC An ERC-20 Token?
If you’ve heard that LRC is an ERC-20 token then we must tell you that you’ve heard it correct. This type of token is known as an audited and non-custodial type of exchange protocol.
Where Can I Buy Loopring?
For being able to trade in this field, you might wonder where you can buy Loopring coins and what could be the loopring crypto price prediction. So to answer the first, we’ve listed down four main exchanges which are also stated to be the most major ones in this domain.
- Coinbase Pro
For beginners or starters, in this loopring review we’ll focus on the basic 4 steps that you can adopt for trading in LRC as the basic Loopring guide.
- First of all, users have to place an order through their Loopring Wallet. This serves as the first step of trading in Loopring.
- The users will then have to transfer the funds by signing their persona wallet key which is linked to their wallet address.
- The order is then processed through all the available contracts which were formerly created on this platform.
- Then with the help of these contracts, the funds can be exchanged into desirable currency which the user was looking for.
Can I Stake LRC Token?
Of the many benefits LRC trading holds, staking of your LRC is one of them. Any user can stake their LRC to get a 70% share of it in all exchanges created on loopring. Side by side, Loopring stake can also be utilized for a specific exchange to lower the particular protocol fee.
How Do You Make Money With LRC?
Buying, selling and trading of LRC, all can result in money profit. Infact, staking of LRC has now been reported as one of the most preferred methods of money making in the Loopring protocol.
Is Loopring Crypto Legit?
With the world leading in cryptocurrency, Loopring is indeed a legit source of exchange and trade through integration of all the platforms that implement smart contracts.
The whole idea of Loopring protocol running on decentralized and centralized exchange, covering all the platforms which deal in smart contractship, comes under the umbrella term of Loopring exchange that offers trades along with liquidity, fast and order-book based exchanges, making them equally secure.
Is Loopring Exchange A DEX?
Well yes, in this loopring review, it is of priority to mention that Loopring is Ethereum’s one and only zkRollup Dex. This protocol reproduces the experience of centralized exchanges but with a more non-custodial form and high-performance rate.
Take a look at our Arbitrum rollup review and Zero Knowledge Proof based rollups.
Loopring staking take place with LRC tokens being staked for earning protocol fee, which is a share of the total amount of orders following through all Loopring based DEXs.
By following the whole procedure of Loopring staking, you can put your LRC tokens up for the stake and can unstake them as well.
Loopring Price Prediction
Currently in the beginning of March 2021, Loopring coin price prediction stands to be 0.581 USD which is expected to rise up till 2.583 USD by the march of 2026 which is almost 5 years from now.
Will Loopring Go Up?
Based on the present analytical forecast, the price increase in the loopring chart is highly probable. It is predicted that a 5-year investment in Loopring can generate a huge profit of around 350%. Come back to this Loopring review in 5 years after you gain a lot in your Crypto portfolio.
What Wallet Can You Store Loopring LRC Crypto In?
Coinbase wallet and MetaMask are the widely used and most popular wallet app options for cryptocurrency. You can download either of them and link it to your crypto currency, which in this case would be the Loopring Platform.
Loopring vs 0x
Both the Loopring and 0x protocols are under spotlight in the field of cryptocurrency. You can evaluate the differences and features both offer in the table listed below:
|Loopring (LRC)||0x (ZRX)|
|Protocol||It is based on the Ethereum protocol of cryptocurrency.||It is an Ethereum based token with foundations laid on the native OX protocol.|
|Current Worth in US dollars||Current price is of 0.580 USD||Current price is of 1.394 USD|
|Speed of Transaction (Also known as Block speed)||20||450|
Loopring Crypto Alternatives
In the race of crypto trade and exchange, other platforms are also getting attention for being an alternate option of Loopring. Such names would include StealthEX, Zcash, Litecoin, Vertcoin and NEM.io foundation.
Loopring Crypto Social Media Handles
You can follow the latest Loopring updates on their social platforms such as twitter (@loopringorg) and their official website (www.loopring.org).
Takeaway – Loopring Review
With the rising markets of smart exchange platforms, one must look out for the best options available, both in terms of present working and future outcomes. And with this Loopring guide you can conclude how Loopring can be one of those options.
So, if you are looking for a fast and promising way of cryptocurrency exchange which pays back quite good, then Loopring is the platform for you! I hope you really enjoyed our Loopring review!