What Is the Purpose of the Loopring Project

What Is LRC?

Loopring is for open-source, audited, and non-custodial exchange mechanisms, and LRC is an ERC-20 token. It uses zero-knowledge rollups (ZK-rollups) as proof to allow non-custodial order book-based exchanges on Ethereum.

“Described as a ‘layer 2 construction that increases scalability through mass transfer processing rolled into a single transaction,’ ZK-Rollups vastly reduce the computing and storage resources required to validate blocks, by decreasing the amount of data in a transaction.”— Forbes.

Loopring is an Ethereum-based second-layer protocol that offers a decentralized payment network with centralized features. Loopring does not employ the Proof-of-Work (PoW) or Proof-of-Stake (PoS) consensus procedures. Instead, it uses a Loopring protocol based on a three-layer Merkle Tree. This method is very secure and allows for thousands of transactions per second (TSP).

Best of both worlds?

The average daily trading volume in 2020 varied within a $50-$200 million range across the entire crypto market. Most of that trading currency was spent on centralized crypto exchanges — platforms that operated online. These private companies stored user funds while facilitating a match for buy and sell requests.

These platforms host many disadvantages. Therefore, the decentralized exchange emerged to alleviate those drawbacks. However, a decentralized exchange has flaws also.

The Loopring mission combines centralized order matches with decentralized on-blockchain settlements of orders to create a hybrid product, which takes the best features of both types of exchanges.

The cryptocurrency craze is not new

Cryptocurrencies are not new. Bitcoin (BTC) has been around since 2009. Bitcoin has given birth to more than 10,000 cryptocurrencies as of January 2022.

Cryptocurrencies are easy to manufacture. It is estimated that the top 20 cryptocurrencies account for around 90% of the cryptocurrency market. That does not include non-fungible tokens (NFT), a rising investment form within the crypto world. These add to the already complicated world of digital currency.

Is Loopring a good investment?

Loopring (LRC) remains a potentially good investment despite recent pullbacks. Indeed, the platform’s early adoption of ZK-Rollups in “gas fees” to improve network transaction speeds is a hint of the platform’s promising future.

However, you should always do your own research, dollar-cost-average (DCA), and only invest what you can safely afford. There is no guaranteed investment.

LRC Price Data

“The live Loopring price today is $1.08 USD with a 24-hour trading volume of $405,447,293 USD. We update our LRC to USD price in real-time. Loopring is down 4.89% in the last 24 hours. The current CoinMarketCap ranking is #71, with a live market cap of $1,436,975,489 USD. It has a circulating supply of 1,329,247,433 LRC coins and a max. supply of 1,374,513,896 LRC coins.” — Coin Market Cap.com

LRC to USD Chart

What is Loopring? LRC crypto & Should you BUY It?

Serg Tech uploaded this video to YouTube. His opinions and predictions are arbitrary since no one has a crystal ball, nor should you consider this financial advice.

$LRC #LRC #Crypto @immutable

Final thoughts on LRC's investment potential

ZK-rollups allow Loopring sales to perform computations outside the “gas fees” network for settlement. This avoids the poor speeds and high costs of traditional decentralized exchanges.

There are rumors about a merger or partnership between Loopring and GameStop (GME), the video games retailer that recently and miraculously pulled itself back from the brink of bankruptcy.

Typically, the Wall Street mantra has been, “Buy the rumor, sell the news.” If you subscribe to that philosophy, now might be a good time to buy since the LRC price pulled back “4.89% in the last 24 hours.” So then, you should look to sell whenever there is a confirmation of the rumor.

Here’s how to think about the GME “rumor”:

1. ETH is the highway.

2. LRC is the vehicle (gas).

3. GME is the driver.

4. IMX is the cargo.

People will need LRC for the GME NFT marketplace--and ETH has to go to Layer 2. You won't likely see people paying $1k gas fees for a $5 NFT purchase, sale, or trade.

Congratulations to those who were able to get the 68¢ per token price a few days ago. $1 is still a tremendous bargain when you look at it objectively. It's only a $1.3 billion market cap at that price.

If LRC had MATIC’s market cap, we’d be at $9 a token. Plus, LRC is a true layer 2 solution. Not a side chain.—Ryan Renken.

Another strategy could be a buy-and-hold approach, while the price is still around $1.00 per token if you believe it has a long-term value given the above analogy.

DISCLAIMER: This article is for entertainment and informational purposes only. It should not be considered financial or legal advice. Not all information will be accurate. I am not a financial adviser and anything I propose should be considered friendly banter to show you what is possible if you invest your money in these vehicles. However, there are no guarantees. Consult a financial professional before making any significant financial decisions.

Stephen Dalton is a retired US Army First Sergeant with a degree in journalism from the University of Maryland and a Certified US English Chicago Manual of Style Editor. Also, a Top Writer in Nutrition, Travel, Fiction, Transportation, VR, NFL, Design, Creativity, and Short Story.

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