фото показано с : blokt.com

Volume on crypto exchanges has taken serious hits this year. Most cryptocurrencies have declined by at least 50 percent, while the volume on exchanges has decreased by at least 80 percent in 2018. Most people who invested in cryptocurrencies are either HODLing out of personal choice or have no other option but to hang on to their holdings because of liquidity issues. Now a new crypto trading platform is helping solve the problem. Called the Liquid Network, the platform offers faster and more secure digital token settlements.

Cryptocurrency settlements can be difficult and may not always be as fast as expected. San Francisco based Blockstream Corp. is helping change the crypto narrative. Its trading platform Liquid Network promises faster settlement to users by connecting financial institutions, brokers, and cryptocurrency exchanges. Over 20 companies have signed up for the platform, including crypto exchange giants OKCoin, Bitmex, and Bitfinex.

Chief Strategy Officer at Blockstream Samson Mow explained how the platform could improve liquidity in the global crypto markets. He said:

“Liquidity across exchanges is definitively not there yet. With the advent of Liquid — with faster settlement times — we should be able to improve it by making it faster and easier to transfer.”

The problem with liquidity on cryptocurrency exchanges was cited by the New York attorney general’s office in a recent report in which mentioned explicitly how trading volumes on exchanges could be manipulated. There are questions related to the transparency and integrity of these exchanges. The report suggests:

“Customers face the risk that the availability of liquidity in those assets could change, without notice and at any time.”

As the price of Bitcoin started experiencing a frenzied bullish run late last year, several crypto exchanges opened their doors to investors. However, with the price hitting rock bottom this year, receding by over 60 percent in a matter of months, these exchanges started experiencing volume problems, and liquidity hit a low. Over 500 crypto exchanges are in operation as of now, and many of them could be inflating volume, making it difficult for individual investors to trade.

Bloomberg Intelligence analysts Mike McGlone spoke about the importance of liquidity in exchanges, saying:

“Liquidity is almost always related to volume, and there are so many exchanges, and that’s a bit of a problem. [Liquid Platform] is trying to get liquidity from that overall volume measure in a single execution point.”

New Trading Platform for Cryptocurrencies Will Help Solve Liquidity Problems was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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