Everyone had their predictions for what 2018 would turn out to be for crypto especially after the lucrative ending that was 2017; it’s fair to say the reality has been surprising. Some of the highlights that broke out with great effect this year were the court order on Bitconnect, the issuing of the court order against Tether, the crackdown on exchanges not fulfilling some bare minimum requirements, two exchange hacks, awaited market correction and Mt. Gox striking again in a recurrent script of whale manipulation. Good news first, cryptocurrency was a major talking point in the World Economic Forum earlier this year. Leading nations have come out vocal, and luckily the tone has been positive as far as The United States, Russia and Germany at least are concerned. This intervention is necessary is healthy and motivating, with the crackdown aimed at third party financial providers who fail to meet certain minimum requirements to create a secure interface of interaction with crypto for all investors. Along with this sentiment I see a great opportunity with Quoine Liquid Platform. In this article I am going to review why I am bullish on this project, and why it is healthy for the growth of cryptocurrency as a whole.
What is Quoine? Quoine is single, globally-sourced trading platform with an associated suite of services, targeted at bringing the highest level of liquidity in the exchange of crypto tokens in the new crypto-powered economy. Some of the regulatory thresholds that Quoine has met include registration in Singapore, regulation in Japan by the Japanese Financial Services Agency(FSA) and it is audited by Deloitte one of the Big4 auditing firms.The Liquid Platform has two twin exchanges Qryptos(for crypto-crypto trading) and Quoinex(fiat-crypto pairs). The native token for all the services offered by the Quoine platform is Qash.
The main outstanding feature of Quoine platform is the World book. Currently, there are plenty of exchanges through which traders can interact with the crypto ecosystem. This creates a two-fold problem. While this increases the outreach to more people around the world, an even bigger problem arises as there are vastly varying levels of liquidity in these exchanges, otherwise known as liquidity silos. Two, traders need to open accounts in various exchanges to trade for particular crypto tokens that may not be listed in their preferred one. This is hectic and expensive (transaction fees of moving capital in the form of tokens and fiat from one exchange to another). Quoine Liquid Platform seeks to connect all exchanges around the world, giving traders a central gateway to crypto tokens at stable prices. Also, this will uplift undeserved markets with low volume through connecting them with all orders worldwide, say an exchange in Latin America. A good scenario is a trader wants to exchange bitcoin for KRW in exchange A, while on the other side of the globe another trader seeks to exchange bitcoin for a non-liquid native currency like NZD. Using the Cross Currency Conversion Engine, the world book can complete the match the two orders by adding the conversion of NZD/KRW. This taps into additional sources of liquidity. Another seemingly unresolved issue of current crypto markets is the market upheaval caused by the liquidation of large positons or influx of large amounts of money. For instance, among other reasons liquidation of about 400 million in bitcoins from the Mt. Gox hack might have contributed to the recent market dip. With the world book, price instability due to million dollar trades of institutional investors, for example, will be a thing of the past. This builds confidence in the emerging asset class that is cryptocurrency.
The current liquidity landscape is limited to some providers, and even those are substantially constrained by the cost and time of moving fiat. Some of the traditional liquidity providers include Goldman Sachs. Quoine incentivizes such players to be part of the quoine platform, a central opportunity to easily monetize their capital. Some of the steps taken by Quoine to increase the liquidity of fiat include co-locating bank account with exchanges and also to work with a global bank to increase reach.
The main roles of the qash token will be as a fee for usage on the platform, and an even bolder vision is to use it to pay for financial services in the new global economy as a whole, for instance, trading your assets paired against the native qash token instead of bitcoin or ethereum. Token users can get a 5% discount for fees paid through the native qash token usage on the Liquid Platform, This is significant especially if you are making big money trades.
Through the Liquid Platform, users can also access third party trading strategies and also the platform’s inherent automated trading and market making strategies, only as far as permitted by the law of course.
Currently, the price of qash token has dropped in a move that echoes the overall bear trend. This is a long-term project, and I expect the price to pick in the course of the year as the platform is unraveled. Looking at the roadmap, we expect the launch of the world book beta before the end of Q1, and the Official Quoine Liquid Launch is slated for in Q2 this year. When qash can launch their own blockchain later next year, they can be able to ramp up transaction speeds to support hundreds of thousands of trades running on their platform concurrently. The application for a formal banking license to expand the range of services that can be offered by the platform.
Overall the success of Quoine Liquid Platform will be a massive boost to the cryptocurrency ecosystem. Most of the highlights I mentioned in the first paragraph can be solved in part if not in totality by the Quoine Liquid Platform. The target is no small task, but I see the qash team as one of the all-star teams in crypto with, over 250 years of financial technology experience. Drawing on their valuable experience from the traditional finance, we can expect an informed leadership into the new crypto economy. More on that from the website here. Currently, Quoine Platform has 15 of the world’s biggest exchanges on board.