I’m thrilled to share that our Q3 was the best quarter in the history of LCX, while we are just at the beginning to build a hyper-growth company. New records in monthly active users. New records in monthly transactions. New records in $LCX trading volume and new all-time-high. New records of deliverables by our team to launch new products, roll-out new features and expand our offering.
LCX Terminal, our trading platform connecting to centralized cryptocurrency exchanges, has doubled and reached an average of 88 transactions per active user per month. We’ve launched Social Signals for Cryptocurrency Trading with a seamless integration of social media analytics directly within our LCX Terminal trading desk. LCX Accounts are now more frequently used to buy the LCX utility token directly at our platform, converting ETH or BTC into our utility token $LCX and then start using LCX Terminal. LCX Price Oracles, our reference price services for reliable daily conversion rates, has been and will be an incremental and foundational element for our own technology development. Since August we are also publishing our reference prices as an official data provider and node operator to the Chainlink ecosystem, announcing a strategic partnership and enabling third party decentralized application (DAPP) developers to use our dataset as well. This overall growth is reflected in our utility token, users who are owning and holding the $LCX Token are also active on our platform. $LCX Token reached an all time high in August at $0.0316, while the price grew 60% from July 1st at $0.00926 to September 30th at $0.0148.
You saw the launch of Project Fire Salamander, LCX’s DeFi Terminal, last week. Decentralized Finance (DeFi) is a rapidly growing segment in the crypto industry, combining traditional finance components and transforming them into trustless protocols via smart contracts and tokens. Uniswap is outperforming all other decentralized exchanges (DEX) and is now bigger than the entire decentralized finance space was just two months ago. Uniswap is the first trading protocol to pass the USD $2 billion milestone in total value locked (TVL) – as of writing this, Uniswap reached more than USD $2.35 billion TVL. The LCX Token has been listed on Uniswap in Q3 and there are now several trading pairs: LCX / ETH; LCX / USDC; LCX / DAI and LCX / REVV.
The origin in Uniswap’s growth derives from two main factors: First, community inclusion and automated market making (AMM) which resulted in a community owned protocol based on the $UNI token and solving the liquidity problem on exchanges by providing investors with incentives via AMM. Second, its simplicity and ease of use, while the platform lacks in functionality traders want.
Now LCX is solving this lack of functionality at Uniswap, anticipating their need of professional traders and general users alike. They can use LCX DeFi Terminal to view all of their crypto assets on one dashboard, they can maintain and manage their liquidity pools. But the magic in Project Fire Salamander is the limit order functionality which we will unveil and make available later this week. It is built on top of Uniswap as a second layer smart contract protocol. LCX DeFi protocol is enabling an order book system and works with an integrated price discovery engine which monitors price of each trade in order and automatically executes the limit order to Uniswap when the set parameters are matched. LCX DeFi Terminal aggregates all wallet data via Uniswap to be an integrated, single source of truth. We’re giving traders a complete view of assets, making it possible to manage their liquidity pools and execute limit orders.
This is what Uniswap users have been asking for, and we’re making it available to every one of them. No other company could do this better than LCX. Our deep knowledge and experience, due to LCX Terminal, of building aggregated trading platforms and interoperable smart contract frameworks is giving us an unfair advantage.
What’s more significant and extremely exciting to me is the LCX STO Launchpad, our end-to-end tokenization platform which we announced in July 2020. The LCX Tokenization platform’s unique advantages is the combination of our technology suite and our legal tool set. We are taking care of every aspect of tokenization, starting with asset strategy, strategy for international compliance and regulations, token generation and smart contract development, compliant investor on-boarding and investor management, whitelisting and maintenance of the token directory and more.
A key part of the LCX STO Launchpad is our next-generation compliance suite for investor onboarding and on-going investor management. What we have announced is the result of a long technology development and legal process. We’ve upgraded our whole know-your-customer (KYC), anti-money laundering (AML) and know-your-transaction (KYT) mechanisms to assess risk in real time and continuously protect against fraud and financial crimes. For LCX’s crypto compliance suite we have not taken an “off-the-shelf” outsourcing solution, we have evaluated and selected the best-in-class technology solutions and seamlessly integrated their technology into our platform. We are not only eliminating third-party risks of potential data-breaches, but more importantly developing a fast and convenient user experience. We have announced a partnership with Regula Forensics, the world leader in supplying border control solutions, for authenticating documents; a partnership with Elliptic, using blockchain analytics and wallet analysis to innovate crypto compliance and improve anti-money laundering AML practices; a partnership with BioID using AI-powered biometrics for identity proofing from Fraunhofer Institute and a partnership with Pliance to automate anti-money laundering AML practices for crypto compliance.
We often only judge someone’s above the surface success and don’t consider all the below the surface hard work, continuing efforts, failures and opportunity-costs to achieve that success. This is known as the “iceberg illusion” and it applies to all the hard work the whole team at LCX are delivering on a daily basis in regards to regulation and compliance. A lot of this work will never be published and will not get the attention it deserves – but I can tell you, this will be the most important factor of success for many blockchain companies. Some try to fix compliance requirements with solutions from the past, from the traditional finance world, or simply ignore regulation completely. The challenges in compliance in today’s new decentralized financial world needs new solutions and can’t be tackled with outdated tools. We are fully committed to crypto compliance, leading by example and advancing the industry as a whole.
And as we continue to deliver on our mission, we are committed to focus on our users and customers, balancing market dynamics while implementing incremental legal and licensing requirements.
I often say “disruption means turning the impossible into the inevitable.” At LCX we are setting up processes that lead to sustainable and profitable growth. “Driving Profitable Growth tackles three key leadership challenges,” says Gary Pisano, Professor of Business Administration at the Harvard Business School: “A – formulating effective growth strategies; B – designing a scalable business and operating model; and C – an evolving culture and human resources.”
Breaking this down into startup language and into a more pragmatic view for LCX based on the Startup Development Phases. LCX is now entering the next development stage, from validating product / market fit to scaling the business. A key step for LCX to become a hyper-growth company.
Also in Q3 2020, Hackernooon published an article about the LCX STO Launchpad, Blockfyre has published a detailed report about LCX and Tokenmetrics invited me to a live video AMA with Ian Balina. Furthermore our press and media releases in Q3 resulted in 747 publications.
We want to share our knowledge and expertise to shape the vision and open a dialog for the future of the crypto industry. That’s why we are continuing to publish articles on market insights, recent studies and expert opinion. This quarter we wrote about The Importance Of Legal Identifier For The Blockchain Industry, the STO Market Size: The State of the Industry of Tokenization and Security Token Offerings, How Tokenization Can Bring Every Asset to the Digital World and Tokenization of Movie Assets: Financing and Investing in Film, TV and Movie Production in the Age of Blockchain.
Oh and btw. Our twitter account @LCX has been officially verified and we’ve got this cool blue verified badge.
To wrap up , so far – 2020 had been just amazing for LCX, and we delivered another outstanding quarter… but the best is yet to come. We are excited about what is coming up until the end of the year. Join our telegram community, our telegram announcement channel and follow us on twitter @LCX to be informed first. I’d like to thank all our LCX users and customers, but also I want to thank the whole LCX team, all of my colleagues, partners, advisors and shareholders for your continued support. Remember, disruption means turning the impossible into the inevitable.
Written by Monty C. M. Metzger – @montymetzger,
CEO and Executive Chairman at LCX AG – @LCX
Disclaimer: This content contains forward-looking statements that involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates, and intentions we express in these forward-looking statements and in other public filings and press releases. We may not achieve all of the expected benefits of our strategic initiatives and partnerships. Factors beyond our control, including but not limited to the market and economic conditions, changes in laws, rules or regulations and other market challenges, could limit our ability to achieve some or all of the expected benefits of these initiatives. This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.
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