Liquidity is the availability of assets to a market or company, and when liquidity dries up, drastic action must be taken or crisis ensues. This was very much the case during the financial crisis of 2007–2008, where financial institutions Lehman Brothers and Bear Stearns collapsed. Starting with a crisis in the subprime mortgage market, these institutions were ultimately forced to their knees as hedge fund clients pulled out, lines of credit were withdrawn, and margin calls began to pile up.

When considering that even the most premier financial institutions are susceptible to liquidity problems, it becomes apparent that the drastically volatile cryptocurrency markets are at significant risk. Given that most new projects launching in the space have a majority of their assets tied up with relatively illiquid token assets, any sort of shortage in the market could cause a massive crypto crisis.

One intriguing altcoin that has identified this issue and is addressing it head-on is QASH, the native token of QUOINE’s LIQUID platform, which is a financial utility designed to bring together the global liquidity pool under a single umbrella. The ultimate goal of the LIQUID platform is to provide liquidity services to both developed and emerging markets, where token issuers, token holders, innovators, and users of next-generation financial services all benefit and contribute to a shared liquidity pool.

Interested in QASH? Here’s a quick rundown of the project:

Platform & Development

The LIQUID platform is made up of a single, globally-sourced trading platform (World Book) with an associated suite of services (Prime Brokerage). The ‘World Book’ works as a multi-market order book that supposedly combines every liquidity source in the world into a single highly liquid tradable order book, in any currency a user chooses while the Prime Brokerage service offers Direct Market Access (DMA), Fiat Management, Crypto/Fiat Credit facility, and Real-Time Reporting. Combined, QUOINE believes these products produce the greatest crypto liquidity platform in the world.

QUOINE already runs an established trading platform, QUOINEX, that does about $12 billion in annual transactions, and is fully regulated in Japan (License No. 00002). While the exchange offers a nice fiat to crypto pairing selection, its volumes are usually pretty low. That being said, the fact that they have already gone through the regulatory process in the Japanese markets is a significant bode of confidence for the LIQUID project.

Finally, QUOINE is rolling out an ICO platform called QRYPTOS, which is supposedly designed to be an end-to-end ICO and listing platform, with a dedicated focus on fraud prevention.

Based on the roadmap laid out on the LIQUIDITY website, we should expect the official LIQUID platform launch sometime in Q2, 2018. Similar to the trade.io project, QUOINE has aspirations of becoming a full-fledged investment bank.

Team

QUOINE boasts a well-established team that has a proven track record of product development and navigating regulatory processes. There is no indication that the team will not be capable of building the LIQUID platform.

Token Financials

QASH (QASH) currently has a market cap of ~$190 million with a circulating supply of 350,000,000 QASH and a total supply of 1,000,000,000 QASH. The use cases for QASH are fairly limited to being a platform token, but the QUOINE team has stated they hope to build it into the token for financial institutions eventually.

Final Take

QUOINE (QASH) is tackling the massive crypto liquidity problem head-on through their universal trading platform. Given that they already have years of experience running a certified trading platform, they are well positioned to succeed, but will require widespread adoption to accomplish their lofty goals.

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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.