The Legolas public sale has ended, and they successfully reached their cap of 2,000 BTC to add to the private sale total of 1504 BTC. This makes a total raised of somewhere around $30 million with the current price of Bitcoin. So, what is it all about and what’s their USP?
Combining Decentralized With Centralized
The Legolas exchange operates a decentralized ledger. However, rather than having a decentralized platform, they have chosen to have the ledger sit on their proprietary, centralized platform. The reason for this, they say, is that it will “…neutralize front running, and guarantee the unalterability, temporality and transparency of the order book”.
Furthermore, Legolas feel that a fully decentralized environment leads to market manipulation, and believe there is an issue with big-time investors not being able to make transfers between fiat and different blockchains. Therefore, they are asking investors to put their trust in their platform, which they believe is fairer, more transparent and will facilitate these transfers.
The LGO token will be released forthwith, now that the sale is complete. It will be used as the definitive method of paying fees and for certain, as yet undefined premium services. CEO and founder Frederic Montagnon wrote in a blog post:
Existing crypto exchanges present numerous important flaws and limitations. With no alternatives, the community is forced to accept opacity, capped or slow transactions, and the risk of catastrophic losses. To meet the needs of its investors, we created Legolas, a new crypto-currency exchange that provide transparent services by combining the best of blockchain and traditional technologies.
Now that the sale is complete, things should move pretty quickly. Legolas have promised a beta launch some time this quarter, with the version 1 release due for Q3 2018. It will be interesting to see how they build up trust and convince lovers of fully decentralized systems to back-track into an at least partially centralized environment once more.
Do you agree with the Legolas assertion that a hybrid of decentralized and centralized services is the true way to create a perfect exchange? Let us know your thoughts.