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LCX Token – Transparency Report

2023 marks a significant milestone for LCX as we celebrated our 5th anniversary. Over these half a decade, LCX has been at the forefront of innovations, establishing trust, and delivering exceptional services within the cryptocurrency industry. As we reflect on our past, we also want to shed light on our strategies for the next five years and beyond, ensuring that our community is always informed and aligned with our vision.

Transformation From Fixed Company Reserve to a Variable Balancing Company Reserve

Traditionally, LCX maintained a fixed company reserve of the LCX token. Over the last 12 months our ecosystem grew significantly and more users started using LCX tokens to pay for various fees on the platform, such as trading fees or token launchpad fees. Recognizing this, we’ve decided to pivot to a more flexible system and expand the lifecycle of the LCX token ecosystem.

Starting from 2024, a variable percentage of LCX tokens that we receive from the utility token’s usage will be placed back into the company reserve wallet, up to a maximum of 20% of the total LCX token supply. By introducing a variable balancing reserve, we aim to sustain stability, ensure trustworthiness, and promote transparency in our financial operations.

Gearing Up for the Next Positive Market Cycle

The cryptocurrency industry is ever-evolving. As we anticipate the upcoming positive market cycle, two key challenges stand before LCX: liquidity and growth. To tackle these head-on, we’ve devised a proactive strategy for the near future.

  • Liquidity: Strengthening liquidity is a central focus for LCX Exchange. To achieve this, LCX is taking a multifaceted approach by enhancing its liquidity pools and forging strategic partnerships with market makers. This combined strategy aims to bolster the trading ecosystem, ensuring users have access to a robust and efficient trading platform. By prioritizing liquidity, this commitment to fortifying the liquidity landscape guarantees a seamless, efficient, and superior trading experience for all LCX users.
  • LCX Maintaining Regulatory Registration and Compliance: Ensuring LCX remains compliant with regulatory standards is of utmost importance and an investment into the future. By adhering to regulatory guidelines, LCX can provide its users with a secure and trustworthy trading environment. This commitment to compliance also bolsters the exchange’s reputation, fostering trust among existing and potential users, and enabling LCX to operate seamlessly within regulated markets.
  • LCX getting MiCA ready: LCX is taking proactive steps to align with the upcoming Markets in Crypto-Assets (MiCA) regulations. As highlighted by The Block article titled “Leading the European Crypto Charge: LCX Set to Become First MiCA Ready Exchange in Liechtenstein”, LCX is set to pioneer this new regulatory landscape by being among the first to get MiCA licensed in Europe. By adapting to MiCA regulations early on, LCX showcases its dedication to transparency, security, and top-tier compliance standards. This proactive approach not only establishes LCX as a leading exchange in Europe but also emphasizes Liechtenstein’s role as a prominent hub for blockchain and crypto innovations. It positions LCX to benefit from an expedited application process, given its history of regulatory compliance, setting the exchange on a fast-track to embrace the future of crypto regulations in Europe.
  • Strengthening Security Protocols: Prioritizing top-notch security measures and regular security audits will make users feel more secure about their assets on LCX. 
  • Community Engagement: Creating an active forum or community platform for LCX users to voice their feedback, suggestions, or concerns. Engaged communities often lead to improved user retention, platform development based on user needs, and positive word-of-mouth marketing.
  • Partnerships and Collaborations: Forming strategic partnerships with other fintech companies, blockchain projects, or financial institutions can widen LCX’s service offerings. This includes integration with payment gateways, collaborations with other tech platforms, or joint ventures with other crypto projects. Such partnerships lead to increased user adoption, diversification of services, and access to new markets or user bases.

LCX is ready for the future, our commitment remains unchanged – to building a fully regulated safe and reliable business while delivering a seamless user experience. Being the first cryptocurrency platform to receive 9 regulatory approvals, and being MiCA ready, is an important milestone. These strategies are strengthening our mission and our community’s trust. Together, we envision a future where LCX continues to set benchmarks and revolutionize the cryptocurrency industry.

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