Welcome back to the Tribe! In this post we are going to dive into a hot digital asset that is creating small waves in the crypto and traditional markets. Specifically, we are going to answer the question – What Is Loopring!
Nothing should be considered investment or financial advice. Enjoy the ride!
What Is Loopring
Loopring is a layer two protocol based token that is built on top of the Ethereum blockchain!
The aim of Loopring is to act mainly as liquidity for its decentralized exchange that can be found here. Obviously, there are other utilities for the token on the exchange, but in simple terms, it is a native token to help users trade cryptos for minimal fees on top of its platform.
This digital asset Loopring, or LRC, has been around since September 2017, which means it took to the market in the middle of the 2017-2018 bull run which served to spike the price slightly as it entered the market.
Since then, LRC has been losing traction or value when compared to other top assets such as Ethereum and Bitcoin. While losing trading power, the team behind the token has continued to develop the native DEX and the token utility protocol while searching for new partnerships.
Currently, LRC is sitting at rank #61 with a market cap of 2.8 billion at the time of writing, November 8, 2021.
The price of LRC is currently: $2.15.
Things to consider about this asset:
There will not be constant inflation similar to other assets where reserves were kept in a lock up in addition to founder pools. Typically those funds would be released periodically over a span of time say one to two years increasing the total circulating supply. This is NOT the case with LRC. What this means is there will not be a sudden dump from the founders, early investors, or partners at a single time looking to rug pull the coin similar to the squid game scam.
This bodes well for the project and investor confidence, although there is still a clear correlation with a pump and dump scheme going on with the recent run ups.
While it might seem like a pump and dump, there is some merit to the price increase.
Recently, there were rumors floating around the market that Loopring and GameStop are in co-hoots to build out an NFT marketplace.
GameStop has confirmed that it is in fact looking to build out such a market place, but has not confirmed the suspicions that Loopring was the partner. Likewise, Loopring has not yet confirmed the news either.
Although, with some light digging developers were able to scrap out references to GameStop on some of Loopring’s Github pages (as seen in the above image) as well as references to the InterPlanetary File System (IPFS). The IPFS is a peer-to-peer decentralized service that effectively backs up websites and files. Ironically this is exactly what a GameStop’s NFT teaser page references. This clearly leads to investor assumptions that Loopring is more than just a DEX and protocol, but could soon hold more utility then previously ever expected.
Chances To Thrive
While the pump is great for any asset, it really is resembling meme coin charts right now more than anything.
There are only a select few ways that Loopring survives this story and comes out on top without experiencing a huge dump after the news drops.
We are all familiar with the common phrase in crypto:
Buy the rumor and sell the news!
This would be absolutely no different, and Loopring would quickly find itself back in the bottom tier of the market. Unless there is more gravity to the rumor.
hypothetically, lets theorize that Loopring is doing more than just building out a solution for GameStop. Lets theorize that they are in fact, adding their token and bridge layer two protocol into the mix to further their digital asset utility. Well, that makes quite the difference doesn’t it?
In that scenario, the LRC token might serve to not retrace to previous lows, but continue to test new all time highs on speculation alone.
This coupled with the traditional markets fascination with GameStop already will only serve to see the token benefit long-term if all comes to pass.
What Is Loopring Post
Thanks for reading our brief post on what is Loopring! We were actually personally asked to do this quick review of the asset by someone we introduced to crypto a few months ago!
It is so fun to see people grow their crypto knowledge and continue to dig into this market.