Monday, July 30, 2018

Investment evaluation of LIQNET ICO project.

Today i wil be blogging on investment 
evaluation of Liqnet ICO project,  for those that miss my earlier post on Liqnet,  you can click here.
When it comes to ICO,  investors are being careful about the projects they are going to invest in so they make various findings before funding an ICO,  so I decided to do my own findings and share some of the evaluations made by different bodies as regards LIQNET ICO project.

DIGRATE (www.digrate.com)
Digital Rating Agency (DIGRATE) is the world’s first professional provider of independent evaluation of ICO projects, digital assets, and cryptocurrencies. By providing ICO project the due diligence, they help founders reveal pitfalls and shortcomings that may ruin their chances of generating funds.

According to the report published on the 24th of May 2018,  from their evaluation,  LIQNET has a score of  5.2/7.
Below are some of their evaluations;

1.QUALITY RATE
Under the quality rate we have both advantage and disadvantage of LIQNET project with DIGRATE recommendations.

ADVANTAGES
HIGH
Quality Rate
● The team understands real market problems and offers
their solutions.
● There is a clear roadmap and detailed financial plan.
● There is developed beta version of the platform.
● A smart contract code for token sale is published.
● The economy of the LEN token ensures incentives for token holders and measures to stabilize the token exchange rate.
● The legal side of the project is thought out in detail.


DISADVANTAGES

● There are no state licenses for the provision of
financial services.
● Information on the experience of team members cannot be confirmed in other sources, except for the official website of the project.
● The founders of the project and team members are
unknown in professional circles.
● There is no information on large investments in the
project.
● Low activity in social networks and average on blockchain news resources.

RECOMMENDATIONS 

1. Obtain state licenses for financial services.
2. Attract investors and strategic partners to cooperation.
3. Attract advisers specializing in trading and software development.
4. Increase the popularity of the project in social networks and increase the number of publications on news resources.
5. Update the information in the LinkedIn profiles of team members and project founders.
6. Attract the known foreign companies to the project in order to increase the credibility of foreign investors.

2. As regards the project concept, DIGRATE strongly agree that LIQNET understands the real market problems and offers solutions.
The main problem of the market is the
division of liquidity between the crypto exchanges, according to developers of LIQNET.
Today, about 200 exchanges are engaged in cryptocurrency trading, but only about 50 of them have good volumes (an average daily volume of more than $ 30 million). Limitations on depositing and withdrawing funds together with a low-level services slow operations. Rapidly growing demand remains unsatisfied. Retail FX / CFD brokers consider the lack of liquidity as a major obstacle to the development of crypto market, according to the survey published in the Finance Magnates’ quarterly report.

LIQNET proposes to solve the problem through the liquidity aggregation mechanism - Liquidity Exchange Network (LEN). LEN, with the help of API, collects and aggregates data on purchase / sale from a variety of crypto exchanges and forms a single order book. LEN aggregates orders in a single stream, so users can make transactions at favorable prices with a minimum spread. In the next year the project team plans to connect top 10-15 exchanges. In the long term, there will be connected sources, for which users and new top 10 exchanges will vote.

3. DIGRATE agrees with the uniqueness of LIQNET products.
Speculative and investment interest in cryptocurrencies is growing rapidly. The ability to trade digital assets in the desired amount is necessary for the market to develop. With the help of aggregate cryptocurrency liquidity, LIQNET will be able to occupy a new niche in the market and meet the demand of both professional traders and the blockchain community as a whole.
Liquidity Exchange Network is the main distinctive feature of the platform. The LIQNET exchange platform will collect orders and provide customers with professional trading tools for trading on the market with greater depth. The additional distinctive features of the LIQNET platform include:
● a system of storage and accounting of cryptocurrencies, which consists of several subsystems and has a high level of data storage security
● platform's internal cryptocurrency storage system (a geographically spread out array of hot, conditionally hot, and cold
wallets and multisig addresses for every cryptocurrency);
● background clearing service (validates current balances and inputs and outputs between full cross-sections, and if there's an
inconsistency, it registers the dangerous state and transfers the funds to cold wallets and multisig addresses);
● external cryptocurrency storage system LEN Funds Manager (accounts for circulating capital distributed among exchanges,
allows to transfer cryptocurrencies between exchanges and the platform);
● Circulating capital, earned fees, storage locations, and transfer limits accounting system.

4. When it comes to roadmap and financial plans;
The project team has detailed roadmap and financial plan. The revenues of the project are calculated in accordance with various commissions (0.1%, 0.15%, 0.2%), provided that the level of 10 largest exchanges trading and the average monthly trading volume reached $ 350 million. The project team also presented a distribution scheme investments attracted during the ICO.

5. TECHNICALITY OF THE PROJECT
When it comes to the technicality of the project,  the project already has a working product.
The project team has developed a trading core and website, implemented a professional trading toolkit, conducted tests under load. The voting system, which will be launched after the distribution of tokens, is under development. During 2018, the team plans to obtain MT5 licenses and customize them for its service, connect payment systems that allow deposit the balance via MC, Visa, UnionPay cards, add PayPal and other payment systems, launch an online wallet with investor's personal account and functions of receiving, storing and sending funds, refine and debug trading apps for Android and iOS.
The smart contract code (it is publicly available on Etherscan) was developed by Como Capital programmers who have extensive experience on conducting ICOs and writing smart contracts

6. As regards LEN token;
The team already has a plan to protect holders of LEN token from devaluation. This really caught my attention and it is interesting to know that the project team has a number of measures to protect the LEN token from devaluation.
Firstly, limited LEN issuanse and reverse buy-back of tokens. Secondly, the mechanism for destroying the tokens: tokens that accepted for payment of discount commissions and purchased by the platform to eliminate the excess supply, will be destroyed.
The project team and founders will not receive tokens, advisors will receive only 3.5% of all released tokens. Advisers’ tokens will not be blocked.

So many other evaluations were done but the interesting thing is that LIQNET has a high score of 5.2/7 according to DIGRATE evaluation.
DIGRATE is a digital rating agency and they are a reputable organisation.

For more information about visit Liqnet social media channels here :

Website : https://liqnet.io/








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