In my last company update I wrote about How To Be The Change. In our last product update we showed how we are turning our vision into actionable steps. Today, I want to emphasize LCX’s winning strategy during these uncertain times.
We’re excited to report LCX Terminal’s most successful quarter ever, which set new records in both active users and revenues.
We generated revenue of 986’000 $LCX at LCX Terminal, which is above our growth expectations and outperforms our business plan. We’ve added another 8 exchanges bringing the total number of connected exchanges to 15. Our positive performance was fueled by our customer-centric approach, delivering new features, improving performance and facilitating a trading competition.
Our user base has now surpassed 12’500, up over 25% in the last 3 months reaching, a new all-time high for monthly active users while one fifth are fully verified (KYC approved). Not only is our growing user base of smart traders a testament to the satisfaction and loyalty of our customers, but it’s also building the fundamental basis for the launch of additional services, particularly for security token offerings, tokenization and our exchange.
I want to call out and celebrate the exceptional work of our product development team. This quarter we’ve introduced two new products. First, we’ve launched LCX Reference Price Services as a regulated service in accordance with Liechtenstein’s Blockchain Act. Second, we’ve launched LCX Smart Order, our new addition to LCX Terminal which is using advanced algorithms to compare prices across crypto exchanges in real-time and execute trades at the best price. LCX Smart Order is an automated smart order routing system for cryptocurrency trading and the only one in the market which is free for users – as it’s part of our free plan.
This was also a very exciting quarter for our utility token, $LCX, as we noticed the fast-growing market demand, adoption and usage. And we’ve already seen a strong response from the crypto community, from developers, investors and professional traders to influencers and analysts who see LCX’s bright future as we continue to innovate the blockchain industry.
As a team we pay particular attention to the events surrounding the Coronavirus crisis and its impact on the blockchain industry. The crisis — which began to unfold in January 2020 and whose effects are now unfolding as a global economic crisis, and triggering shortfalls and setbacks to the financial service industry and the digital asset sector — is clearly one of the most serious events in history. As an initial step, we’ve published our internal Coronavirus company policy and guidelines to give our users, partners, as well as other businesses, and the global crypto community additional references and ideas on what they can do as well. This was accompanied with the launch of #EndCoronavirus initiative to encourage the community to help, support and share their best practice.
We analyzed how the crisis has affected our industry so far and planned steps to cope with the new market conditions and to emerge as a stronger player. We started early to prepare for an economic shakeup and have taken action to strengthen and grow LCX during these down markets.
These steps include — first and foremost — strengthening and supporting our team, focusing on our deliverables and getting things done. Other critical steps are to continue our licensing process, building up traction and growing revenues.
Let’s look at several highlights of LCX’s development in the past three months in detail.
For the LCX ecosystem, we continue to explore partnerships and international collaboration. We’ve launched a partnership with F1 Delta Time enabling users to use the LCX Token to purchase officially licensed Formula 1® (F1®) crypto collectibles. This initiative is part of our broader collaboration with Animoca Brands to explore Non-Fungible-Tokens and other tokenized assets.
This quarter, we also updated our whole administration backend panel, LCX Admin, which includes user management, investor on-boarding, KYC verification, reporting and more. Furthermore we continued to improve performance, speed and security of our platform.
In January 2020 we’ve published background infos on our additional offices and expansion. LCX is headquartered in Liechtenstein, a country that’s part of the European Economic Area (EEA), and has additional offices in Switzerland and India. LCX AG, the legal entity behind LCX.com, was founded in 2018 and has a registered share capital of 1 Million CHF. Until today, we’ve invested more than 2.5 Million USD into the company.
Following discussion at Davos and our on-going relationship with investors, we have started to prepare a round of financing of several million USD to fuel LCX’s growth.
Early December $LCX Token has been listed at CoinMarketCap and CoinGecko while beeing traded at Liquid and ExtStock. Since then $LCX had been listed at four additional exchanges, bringing the total number of exchange listings to six.
$LCX is now traded at Liquid, IDEX, ExtStock, Vindax, FatBTC and Bamboo Relay. After the first token burn on December 11th 2019, we facilitated another token burn on April 2nd 2020. As a result, until today, a total of 43’317’625 LCX Token had been burned – that’s 4.33% of the initial token supply.
Coindesk published an article about the top performing cryptocurrencies in Q1 of 2020. Coindesk wrote: “The first quarter of 2020 will be remembered as a period when the coronavirus-led uncertainty set off a liquidity crisis in financial markets, forcing investors to sell everything, including bitcoin (BTC). The broader crypto market also suffered losses in the first quarter….
However, a few cryptocurrencies (…) managed to put in a positive performance.”
In my tweet on April 2nd, 2020, I compared their analysis to LCX Token development and pointed out that $LCX performance in Q1-2020 was +565%.
In addition to that, if you compare $LCX’s development to a recent report by ICO Analytics, $LCX was the best performing crypto assets with market capitalization below $100M USD.
At the end of March 2020 we’ve announced LCX Smart Order.
LCX Smart Order is enabling all LCX’s users to get the best price on each trade across exchanges executed instantly. Our smart router engine executed orders on the best available price on every trade. This is possible via our smart algorithms automatically comparing and distributing trades across connected cryptocurrency exchanges.
On March 18th 2020, LCX announced the launch of 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.
The Cryptocurrency Reference Price includes four different reference prices called the LCX Bitcoin Reference Price (BRP) in USD and Euro and the LCX Ethereum Reference Price (ERP) in USD and Euro.
We have launched this new service to provide a credible reference price for the token economy. LCX Price Services are offered in accordance to Liechtenstein’s Blockchain Act (TVTG) as a TT price service provider regulated by the Financial Market Authority (FMA).
The LCX Cryptocurrency Reference Prices is an expansion of our proprietary solutions that have been
developed and offered by the LCX. As a blockchain-based service provider in Liechtenstein, LCX, has also published a Methodology Report of the LCX Cryptocurrency Reference Price Services which explains the LCX Cryptocurrency Reference Prices formula and technical details behind the new service.
In my keynote at the World Economic Forum India Summit I’ve pointed out how Blockchain technology will digitalize the financial industry and opens new business opportunities.
In 2019 we’ve already seen how payments have gone digital. One of the outstanding examples is the Visa Token Service (VTS), which has reached a major milestone in January 2020 as the blockchain supported service processed more than $1 trillion USD in volume.
But particularly exciting are the opportunities for LCX on security tokens, security token offerings and tokenization of assets. As you might already know, we are working on some exciting projects and the new blockchain laws in Liechtenstein are in force since January 2020.
According to a new study, the market of tokenized asset in Europe is gaining more and more traction. The market size of tokenized assets market in Europe will reach $1.5 trillion USD in 2024. The report also predicts that the market for security tokens will surpass the market size for all current cryptocurrencies in 2022.
At LCX, we know that the speed of adoption and market growth depends on market players like us. Digital Assets that attract investment capital, investor platforms that enable issuing and sales of security tokens, and market places that enable trading of security tokens. LCX is working to launch several Security Token Offerings on our proprietary end-to-end security token platform – all in a fully compliant manner.
2019 we began to develop our Security Token Offering and Exchange Platform, and we are currently testing the system in an internal environment. LCX’s goal is to give our customers an unique investor experience combining usability, blockchain technology and compliance.
Furthermore as part of our Vision we are working towards a regulated security token exchange. These development are in stealth mode at the moment, but we will update you as we develop these products services and after we’ve received regulatory approvals.
As we look back at the successful first quarter of 2020, we are already well under way on some new and exciting developments for the future. LCX strength will always be its continuity, persistence and innovation, and this year will be no different.
The businesses that are able to grow in these uncertain times understand that their strength lies in their ability to navigate uncharted waters with resilience and perseverance, and at the same time focus on results.
Indeed, times have rarely been more uncertain for the global economy — all the more reason why LCX will strive to deliver on our new winning strategy given our growing user base, our core products and services, our unique strengths, and our aspirations.
Onwards and Upwards,
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.
LCX AG is a company registered in Liechtenstein No. FL-0002.580.678-2. LCX AG is regulated by the Financial Market Authority of Liechtenstein under the registration No. 288159 as a trusted technology service provider.
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