A. REAL LIFE VALUE OF PROJECT (95/100)
Loopring is a protocol that helps a decentralized exchange of ERC20 tokens on the Ethereum blockchain. Loopring allows multi-token transactions, as well as liquidation on the blockchain under different circumstances. They offer benefits to both users and exchanges by deferring risk from both parties in decentralized smart contracts, minimizing fees and cost to create more profitable orders through ring-matching and order-sharing, and as a cross-platform protocol. Loopring’s protocol fits any ERC20 and smart contract blockchain platform.
Price at moment of writing
B. DISRUPTIVENESS OF PROJECT (80/100)
To understand the need of Loopring, we first need to discuss the issues about a centralized exchange model.
The Figure below illustrates a very simplified view of what happens when users send their tokens to a centralized exchange.
Users will first have to deposit their tokens to the exchange before they can trade their tokens. The tokens then will be send to the exchange’s wallet, and the exchange gives them back an IOU, which is a proof of debt. Next, users trade their IOU with other user’s IOUs. Finally, when users want to withdraw, they return the IOU to the exchange, which sends the tokens back to the user’s external wallet address.
There are several issues:
Lack of Security
In this model, users do not have control over their tokens. It allows for instant transactions on the exchange, albeit, while carrying a lot of risk. There are multiple scenarios in which users can lose their money due to centralized exchange custodial risk (frozen account, exchange shutting down, hacking, developer’s mistakes, etc.).
Lack of Transparency
Anything can happen to user’s tokens when they are held in exchange wallets. It is always too late when an exchange becomes insolvent without any notice to the user.
Lack of Liquidity
Users are only able to trade within the exchanges own order pool and supported token pairs. If there are not enough volume users can try trading on another exchange. If, however, the token pair that the users want to trade is not supported, users can try making indirect trades with other pairs or transfer their funds to another exchange. Either way users get hit with multiple fees and will likely lose asset value.
Decentralized exchanges will be the next step in the crypto space. It has been shown in the past that centralized companies are vulnerable. We all remember MtGox. Approximately 850.000 bitcoins belonging to customers where stolen during a hack.
C. TEAM AND ADVISORY BOARD (80/100)
The team is small but very solid, with a lot of experience. All team members worked in key functions at companies like Google, PayPal and E&Y. A lot of experience, lowers the risk.
C.1. The Team
Daniel Wang, Founder
Google Tech Lead, Cofounder & VP of Yunrang Technology, Senior Engineering Director at JD.com, Cofounder & CEO of Coinport Exchange, Cofounder & VP of Hygene Online, Senior Director & Blockchain Researcher of Zhongan Technology
Ay Zhou, CMO
E&Y, PayPal Risk Operations, SJ Consulting Founder
Johnston Chen, COO
Chief Information Officer at 3NOD, Product Expert in Finance Industry
Yipeng Guo - President of Huikentianran Private Equity Management
Juxie - YOYOW Co-Founder, Board Member of Bitshares
Haibin Gan - Chief Technique Advisor
Kelvin Long - President, Founder of UnionPay Smart
Xiang Jiangxu - Suning Group VP
Huaxia Xia- Scientist at Google and Meituan group
Xiao Jun - JD Group VP
Yu Wei - Microsoft Tech Business Partner
Mingcheng Zhang - Redpoint Ventures VP
Da Hongfei from NEO & Onchain one of the advisors of the project. He is a well-respected.
D. COMPETITORS (75/100)
The business model of KUOINE sounds very like Loopring. Is extremely experienced, and can therefore be a big. Next to that, Bitsquare, Bitshares, Openledger, NXT & CounterParty DEX are some indirect competitors for Looping.
E. WHAT IS IN THE CHARTS (90/100)
At this moment, the current price is not relevant because we categorize this as a long-term project. Loop Ring (LRC) is to initiate the handle formation of the Cup & Handle pattern. It will likely coincide with wave 2 and so the most ideal time to cast the buy ladder will be at the terminal end of the handle pattern. The reason for such commonality of these Cup & Handles is mostly related to the uniformity of sentiment across the cryptosphere.
Ethereum will serve as the first public blockchain supported by Loopring. Moving forward, other blockchains with smart contract capability, such as NEO, Qtum, and EOS, may also be supported. If this happens, 2018 will be huge because of the real-life value of these projects.
Loopring is China based. China developed a Sandbox plan with a set of protective measures and a list of cryptos and icos that have gained government approval: these cryptos can be traded. When the regulations have taken place; Loopring can easily 10x in value. Keep in mind crypto’s are volatiele.