LCX: The Ideal Blend of Legal Infrastructure and a Tokenization Platform

Project Reviews / 12.06.2020

The Liechtenstein Cryptoassets Exchange, LCX, is the newest contender for being a category leader in the blockchain industry. The platform seeks to provide a blockchain ecosystem for both crypto and fiat financial industries. 

LCX has its roots in fintech and has been around since 2017. Through various products, the platform is looking to tokenize everything. LCX aims to innovate capital markets and is providing solutions for compliant digital assets and security tokens. 

LCX’s Birth

The brain behind LCX, Monty Metzger has been a blockchain advocate since 2013. He has been quite vocal about the disruptive power of blockchain technology and cryptocurrencies. However, the realization that the missing regulatory framework kept Digital Leaders Ventures, his venture capital fund, from participating and investing in blockchain and cryptocurrencies propelled him to find a solution. 

Thus, Monty sketched out LCX’s plan on a napkin as a solution for professional investors on 27th November 2017. LCX’s vision is to bring the power of blockchain technology to the banking and financial world. Its chief goal is to become the world’s first licensed and supervised blockchain ecosystem for investors. 

So, how does LCX intend to achieve this? 

LCX’s infrastructure will focus on all aspects of compliance and regulation. Developers are looking to build AML and KYC solutions for consumers and enterprises. These solutions include surveillance for crypto deposits and withdrawals, as well as on-chain analytics. 

LCX Blockchain Ecosystem

LCX is looking to provide a solution for both the fiat and crypto industries. As such, the developers designed the ecosystem to accommodate both industries. This unique feature puts LCX well on its way to become a global category leader. 

LCX’s blockchain ecosystem entails six key components that make it easier for the company to provide industry-leading crypto asset products and services. Let’s have a look at the elements of the ecosystem.

  • LCX Terminal

The terminal is LCX’s primary product and provides some unique services, compared to similar platforms on the market. The terminal supports multi-exchange trading, allowing users to trade in up to 15 platforms through a single interface. 

Through the terminal, users get all the tools they would need for professional and advanced crypto trading. You get real-time data from significant crypto markets, instant trading, news, and analytics for both retail and institutional investors. LCX terminal also provides sophisticated portfolio management. 

  • LCX Assets

Another essential aspect of the financial world is asset management. LCX provides this service through the Assets platform for both fiat and crypto-assets. The platform issues various tokenized assets. It also helps to manage security token emissions. 

LCX plans to launch this STO platform after obtaining the necessary regulatory approvals. 

  • LCX Reference Price Services

LCX launched the LCX Cryptocurrency Reference Price Services, which is a service that became regulated in 2020 by the new Liechtenstein Blockchain Laws as Trustworthy Technology Reference Price Services. Operators of the TT Price Services and other blockchain-based services are supervised by the Liechtenstein Financial Market Authority (FMA).

The LCX Cryptocurrency Reference Price Services includes four different reference prices called 1) the LCX Bitcoin Reference Price (BRP) in USD and Euro and 2) the LCX Ethereum Reference Price (ERP) in USD and Euro.

The LCX Cryptocurrency Reference Prices is an expansion and improvement of a number of prices referencing features and proprietary solutions that have been developed and offered by the LCX AG as a part of our LCX Terminal platform since 2019: now, following positive feedback and encouragement from our users, we are taking our pricing services to the next level.

  • LCX Exchange

This part of the ecosystem is yet to be launched. The exchange will provide a regulated marketplace for security tokens and other crypto assets. 

Some of the key features of the exchange include a scalable infrastructure, a secure backend, and a high-performance engine. The exchange will cater to English, German, and Chinese, with other languages rolling out in the future. Users on the exchange will have access to advanced trading tools, as well as portfolio management

  • LCX Vault

LCX Vault is a multi-category custody solution for digital assets in accordance with the Liechtenstein blockchain laws. LCX Vault will offer three main categories of asset protection:
– Decentralized Self-Custody: providing clients full control of their digital assets via hardware wallet integration and partner wallet solutions.
– Hybrid Custody: seamlessly integrated digital asset protection at the LCX platform, enabling clients to securely perform transactions while maintaining flexibility, speed and convenience.
– Cold Storage: Institutional grade cryptocurrency custody, audited, insured and at highest physical security standards.

LCX provides institutional-grade custody for cryptocurrencies and digital assets. LCX has developed a proprietary bank-graded cold storage solution applying the highest standards of cryptographic and physical security. 

LCX Token Explained

LCX’s utility token is the LCX token ($LCX). The token is exchange-based, and users on the platform can use it to pay for any LCX-based services. It also doubles up as a voucher to pay terminal subscription fees, exchange fees, and other fees within the blockchain ecosystem. 

Independent factors like supply and demand will determine $ LCX’s value within the ecosystem. But, as an incentive, the token’s price will be equal to $0.10 or the determined market price (whichever will present a higher value) whenever users spend $LCX within the system. 

At the time of writing, LCX’s market cap is $6.67 million. It has a total supply of  956.682,375 LCX, with 629,038,953 LCX in circulation. LCX is currently listed on eight exchanges, including IDEX, Liquid, and CoinsBit. Its popular trading pairs include LCX/BTC, LCX/ETH, and LCX/USDC. 

Verdict From the Author

Undoubtedly, LCX presents an adjoining use-case solution. That’s because, when you look at the time cryptocurrencies stormed the fintech industry, there has been a tug of war over the digital and traditional financial systems. 

On the one hand, cryptocurrencies hold the promise of revolutionizing the financial system while, on the other, the conventional system fires the shots of global acceptance. 

To bridge the confusion between the two rationales, LCX promises to offer a viable solution for both fiat and crypto industries, with a focus on professional investors. This is music to every investor’s ears. 

Even so, as an ever-growing project, it is only a matter of time before the platform tokenizes the crypto space with stunning exquisite features. 

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.