The Legolas Exchange has announced they are partnering with Luxembourg based BanQix which will enable Legolas customers to deposit and withdraw both fiat currencies and cryptocurrencies, creating a reliable, scalable and secure deposit and withdrawal system. It will also offer the option to convert fiat currencies into cryptocurrencies, and reciprocally, in large quantities.
To this end, the exchange has secured large deposits in cryptocurrencies and fiat with the bank. 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 will serve as protection against any form of eventualities that may not be in any way the fault of customers.
The company is committed to creating a trustworthy, demonstrably fair and bank-backed premium exchange where traders and investors, small and large, can transact without doubting the integrity and robustness of the platform or its order management system.
Legolas Exchange uses Blockchain technology in parallel of every transaction placed, ensuring the inalterability, temporality and transparency of the order book. The Legolas Exchange protocol will neutralize front-running and ensure a fair trading environment.
Limitations of existing crypto exchanges
Most existing exchanges present numerous flaws and limitations. With non-transparent operational systems, capped or slow transactions and the risk of catastrophic losses, only small investors who have no other alternatives are forced to use these exchanges.
Institutional investors who cannot forego these security concerns are locked out of the market and the trillions of dollars it represents.
The lack of guarantees and insurance has seen exchanges decline responsibility of stolen Bitcoins during hacks within their platforms. This has led to the loss of millions of Bitcoins by investors since its creation.
Existing exchanges operate in a login/password paradigm. Even though some “verified account” solutions exist, many traders have been confronted with locked accounts, credential problems and even incorrect balances on their account. Furthermore, most financial institutions are set up in such a way that money managers serve as investment advisors to their investors and are required to follow dual signature rules whereby administrator are signatory to all outside transactions.
An obvious limitation to most existing exchanges is that they create their own rules and require a large degree of trust from investors and traders. Running contrary to many principles of “trust-less” applications, traders who deposit cryptocurrencies and digital assets on exchanges may have no recourse should the exchanges choose to change the rules, keep some bitcoins locked for one reason or another, or even disappear altogether.
Restricted transactions, price manipulation and several other factors also contribute to the limitations of these existing exchanges.
The Legolas solution
To solve these existing problems and offer institutional investors and other large investors the opportunity to hold and manage cryptocurrencies and other digital assets, Legolas is creating a fair and suitable environment.
Decentralized Blockchain technology
The hashing properties of Blockchain technology is implemented in order to determine the place of an order in the orders queue before revealing the contents of the order. Also, the temporality of the orders is strictly respected and the possibility of front running is neutralized.
By engraving all the operations carried out on the Legolas exchange on the Blockchain, the transactions are permanently stored in an immutable format that is traceable and open for audit by the regulator in real-time.
A fast growing market
As predicted by Kay Van-Petersen, an analyst at Saxo Bank, within 10 years, cryptocurrencies will account for 10% of the average daily volume of fiat currency trades, with Bitcoin alone accounting for a 35% share. This translates into 175 billion dollars of bitcoins being traded daily.
This will not happen until major investors who control the bulk of the market begin to participate actively within the crypto ecosystem.
The Legolas exchange is designed to create the perfect atmosphere that will build the confidence of such investors in terms security of investment, transparency of operations and efficiency of service.