Power to the Hodl'ers?

Power to the Hodl'ers?

By ChildOfTheMany | ADA Army | 27 Nov 2021


Truth be told, I don't own many significant ERC20 token positions in my portfolio. Now that you've returned from giving me a thumbs down to read my second sentence , I can tell you why 😂. It's nothing in particular against ETH. I actually respect ETH quite a bit for what it is ; a cornerstone and a pioneer, but I have always viewed the future of crypto as multiple chains. No cryptocurrency being the "Next Bitcoin", or the "ETH killer", but rather a collection of chains that are unique at what they do, yet fully interoperable. So, despite my fandom of what ETH represents, I couldn't bring myself to pay quite expensive gas fees every time I wanted to swap a token or go bargain hunting. And thus, my Cardano ̶i̶n̶d̶o̶c̶t̶r̶i̶n̶a̶t̶i̶o̶n̶  research began.

Just to be clear though, I still do own some ERC20 tokens, and the ones I do own were kept for a good reason. Whether they had favorable price action on the charts, or were well researched projects like Layer 2 solutions I thought would eventually bring value to ETH as a chain, these ERC20 tokens have escaped my scrutiny because of the proposed value they bring in other areas.

Today I'd like to do something a little bit different from my typical Cardano-based posts, and talk about one of those ERC20 Tokens, Loopring. LRC has been a particular favorite of mine since early 2020 for a multitude of reasons;In fact, I found Publish0x because I was looking for ways to buy LRC. Loopring's frequent and explosive 30-75% jumps to the upside even during bear markets, as well as the value it brings as a solution to one of ETH's biggest problems with L2 scaling already had me invested in this token. But recently a rumored partnership with one of the most popular gaming and entertainment companies in the world has added a whole different dimension of value beyond just face-melting gains during crypto winter.

 

 

 

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Loopring is a decentralized order book style exchange protocol, wallet, and layer 2 scaling solution created for the Ethereum blockchain. Loopring plans to be a intermediary free solution to Layer 2, meaning you can buy in with fiat, trade, or access DeFi, and then cash out in fiat, all on the same L2 platform.

 

click me to read⇩

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 ⇧the whitepaper

It's founder Daniel Wang, a former Google engineer, launched Loopring to make creating a low-cost order book style dex easy and accessible for everyday people, and to solve a pressing future need for the Ethereum blockchain in layer 2 scaling. As per the Loopring website, "Loopring's objective is to design and engineer the best-in-class zkRollup exchange and payment protocol on Ethereum, and to operate products that bring it to users across the world." With Loopring's L2 zkRollup technology and zero-knowledge proofs, gas fees for transactions on the protocol are a fraction of what even the cheapest Layer 2 competition has to offer, a cool $FREE.99

 

 

FREE.99?

So, Loopring is a layer 2 scaling solution like Polygon or Avalanche. Key difference here is that instead of paying $0.45 each transaction on Avalanche in gas fees, or $12.00 on Polygon , it's free to transact or swap tokens on Loopring. This is one of the reasons why I saw promise in the LRC token originally over a year ago. Well, that, and because it came recommended by some highly regarded persons.

With the upcoming introduction of the free-to-create V2 of the Looping wallet, not only will users be treated to zero gas fees while swapping or sending their tokens over the ETH network. but Loopring has plans to become truly cross chain by integrating with other blockchains. Also worth noting is the Social Recovery feature of the wallet, which makes it very easy to recover a lost wallet through trusted family or friends.

 

 

Potential partnership

No gas fees to move value around the ETH network is certainly an attractive proposition to a lot of everyday users, but I would imagine Loopring's no gas feature would be of particular interest ,and infinitely more valuable to, entities that are regularly transacting or moving value around the chain thousands or tens of thousands of times a day. Say, if a company like Gamestop wanted to create an NFT marketplace that sold items usable in the metaverse 😉, it would cost them astronomical amounts.

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Certainly many of you have heard the conjecture by now, but there is a rumor of a partnership between Gamestop and Loopring in the works to bring an NFT platform online by Q1-Q2 next year based on leaked Github code. If this turns out to be correct, and Gamestop is indeed working with Loopring to create a marketplace, this could not only expose the LRC token to a ton of capital from everyday gamers utilizing the Metaverse, but could be just one company in a vast sea of companies that have large customer and fan bases- all potentially looking to enter the Metaverse space. In fact, many GME "apes" have already adopted the token alongside their Gamestop investments, and both the Loopring and GME communities have taken to one another quite well. 

 

 

Speaking of Polygon and Avalanche

When talking about comparable tokens to LRC, you don't have to look much further than other layer 2 solutions like MATIC or AVAX for a price reference point- assuming all goes well. LRC has a total of 1,374,513,896 tokens, roughly double that of AVAX with 720,000,000, and is 1/7 of the total supply of MATIC. LRC is not exactly what I would call a small cap coin at 1 billion tokens, but is not terrible, and has plenty of room to grow from its current price.

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The most damning distinction between the three being that if rumors of the partnership are true, Loopring would have an additional 17.501 Billion worth of traditional investment eyes staring at it, as well as customer base that generates nearly 1B per year in profits for the company-which is largest video game retailer worldwide.  Given its current market cap and total supply, I believe a partnership announcement could lead  LRC to sharp price increases in short order.

 

 

LRC token Hodl'ers

Since there are no gas fees on Loopring, and no need to hold ETH or even LRC  to use the protocol, why would people want to hold LRC? To Incentivize people to hodl the LRC token, it can be staked. Staked LRC will earn a percentage of Every DEX's Transacton Fees that are built on the Loopring L2 protocol, not just one.

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Users would receive a percentage of every Gamestop transaction paid to them in LRC, but that could only be the tip of the iceberg for what could be  built on Loopring. If the company does well using the Loopring protocol, it would be a blueprint for companies to follow suit with, and could be the deciding factor in exploring other options for their layer 2 based projects, or just going with a known entity- and with gas fees at zero, I can't imagine it wouldn't be in the discussion for most projects.

 

 

As far as ERC20 tokens go, LRC has always been a favorite of mine. I originally sought to buy it because of it's favorable chart movement for trading, but quickly realized the value of the Layer 2 Scaling solution it proposed when It came recommended by several notable people- including Vitalik himself. Loopring also has a great team behind it, with  former Google engineer Daniel Wang founding it. The protocol has a number of easy-to-use features like a social recovery wallet, and intermediary free purchase and sale of crypto.  With zero gas fees to transact, Loopring could not only be the perfect remedy for users gas woes, but could be an ideal solution for mainstream companies looking to launch projects related to the metaverse- with the intermediary free solution coming as a bonus.

As with all investments, I thoroughly research them, and I invest at my own risk. I caution all others that they must do their own research as well, so this is by no means a suggestion to ape into any coin without doing your own research and understanding the risks. Please be careful while trading. Use caution with how much money you put into small cap coins, and never put in what you cant afford to lose 😉.

 

 

 

 

 

 

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