Crypto Liquidity and Decentralization: A Dissection
By admin• May 26, 2021
Liquidity - "the ability of a product or asset to be sold at the current price.
In simple words, liquidity is the ability to sell something as quickly as possible at the current market price."
SAFCOIN’s upcoming listing on the Catex and P2PB2B international exchanges stands to usher in a new era for what was previously but a start-up with big dreams. With the listings gaining momentum in the build-up to May 26, we thought it appropriate to highlight why expansion of our crypto is so vital and the long-standing benefits we aim to attain through listing internationally.
An IEO or Initial Exchange Offering refers to the process whereby a cryptocurrency is listed on the platform of a crypto exchange, and stands to be bought and sold at a discounted rate. In our case at SAFCOIN, we are to be listed on international exchanges, London-based P2PB2B and China-based Cat.ex, on 26 May 2021, both of which are revered in the crypto realm.
With this, SAFCOIN stands to benefit greatly, edging us closer to our goal of liquidity and decentralization. In lamen’s terms, achieving these would mean that we would be less susceptible to the significant fluctuations brought about by crypto market volatility – stabilising your $SAF.
The above is all good and well, and in an ideal world, certainly attainable, but what exactly is liquidity and decentralization, and what do they have to do with the price of $SAF?
Liquidity in crypto refers to the efficiency in converting cryptocurrency to cash, and just how quickly this can be done without affecting the asset’s intrinsic value. This maintenance of a token’s value is accompanied by market stability, accuracy of technical analysis, and more efficient transactions. At this point you may start to understand why liquidity is such a desirable characteristic. At present, large market-cap cryptos, Bitcoin and Ethereum, enjoy high liquidity and are among the most frequently traded digital currencies in the world.
The word ‘decentralize’ denotes the transfer of control of an asset or activity away from a single person or body. In blockchain, similarly, decentralization refers to the transfer of control from a central entity (a single place, individual or organisation) to a distributed network. This is particularly advantageous since it boasts important characteristics such as fault tolerance – since decentralized systems are less likely to fail because they rely on multiple seperate components, i.e if one computer fails, four to five or more exist to absorb it’s computational workload.
The common thread between liquidity and decentralization is stability, both in the market and systematic streams. The two combine to create an unstoppable crypto as we’ve seen in the case of Bitcoin.
Such is the case in SAFCOIN’s great feat. At present, SAF is traded primarily on the home frontier, in South Africa and on the African continent at large. Our aim is to hop upon the international crypto bandwagon, and break into the international trade of SAF. Our listing on international exchanges has the potential to open doors that will skyrocket SAFCOIN into the crypto big leagues.