Loopring ($LRC): 2022 Project Re-Visit

Deividas Klypšas -

For Loopring, this past year saw a huge influx of users, from newcomers and those native to Ethereum. The Ethereum natives, who were priced out of L1, quickly discovered the many benefits of gas-free transactions, while a larger subset of new crypto converts skipped L1 altogether, directly adopting L2. The Loopring community can celebrate a few of these notable accomplishments.

LRC is dependent on the success of ETH. We could talk for days on this but let's follow the general market trends:

  • Currently, institutional adoption was at an all time high this year. Of that we have a huge portion of institutions purchasing BTC but also ETH. Some key players such as Cathie Wood have stated they would purchase 60% BTC and 40% ETH.
  • NFT adoption is increasing, which in turn increases ETH adoption and the need for Layer 2 solutions.
  • Data privacy is increasing, thus increasing the need for zero-knowledge solutions such as LRC.
  • Metaverse adoption is increasing, see above.
  • PoW isn't green enough for the masses, PoS is a great alternative which ETH is switching towards.

Loopring Org and GameStop

  • GME is 100% building an NFT marketplace, LRC is speculated to play a key role in this and based on dozens of hints towards this, it seems to be all but guaranteed.
  • The founder of LRC gave a hint on twitter that the announcement will PROBABLY be announced by the end of Q4 2021 (FAILED). This is important to remember that since this is a business deal nothing else matters to the two firms other than ensuring both sides gain from this.
  • For Loopring Org this means delivering exactly what GME is paying for, it has to be perfect. A great deal of their reputation will hinge on how this transaction plays out.
  • For GameStop their employees, stock price, stockholders, and reputation is at stake with this roll out. They are going to be some of the first in the space and will have an edge over the competition. This needs to be launched correctly otherwise adoption won't take place.
  • Because of the reasons listed above we cannot truly speculate a real date for the NFT marketplace launch or the marketplace announcement. There have been no real promises made to any investors from the GME side or LRC side. Even more important than that, we are not owed any information by either party at this time. We are pure speculators investing in a newly developing market.

Decentralized Exchange

  • This is another advantage that Loopring has over others in the space. Not only is it a ZK Layer2 solution but it also has the ability to create completely decentralized exchanges that function order-book style. Exactly like a centralized exchange but the users maintain full control of their assets. I seriously don't think this aspect has been priced in as of yet. This is a huge opportunity for Loopring and for investors in the space as well.
  • Take a look at how the Uniswap and Polygon merge has played out. Uniswap has been widely used and is a leader in the DEX space. They have been suffering from lack of a layer 2 solution for a long time. They needed to pivot to a layer 2 solution for them to survive because cheaper options were becoming available to the masses.
  • I personally believe the style of DEX that Loopring provides will be superior over time. Right now I believe continued development is needed for onboarding assets (with less fees involved) and increased adoption of Layer 2 transactions will help immensely.

These are just a few of the major reasons why Loopring Org and LRC have a solid foundation, as solid as you can get in the crypto space. These reasons should help everyone here take a look at the bigger picture and realize that this is a great opportunity for those willing to take the risk and be patient. We may enter a bear market, there may be another year or two of development for certain services, or it could become a hugely popular platform for NFTs and DEXs for major corporations. We just don't know yet. We are speculators and it's important to really believe in what you're speculating on and have realistic expectations.

The Bads

Looking at the plans stated in the Q4 statement, it struck me that there was no talk of any sort of partnership. I'm not talking just GME, there was literally no discussion of any partnership like this wasn't an important part of developing the business. Another thing that makes me worried are Loopheads. Isn't that strange that while GME is looking for creators for their NFT platform Loopring is releasing their NFT separately, not waiting for the alleged partner to deploy their NFT on their exchange? The complete lack of any transparency of the promised Q4 partnership is becoming worrying as I don't believe NDA would prevent them from saying "we are still planning to announce partnership(s) soon" or something similar. If the NDA didn't stop them from announcing the upcoming partnership in the first place, why would it prevent them from confirming it is still happening? LR is a great technology, but Byron teased all of us with the “premium partnership”. This is the truth, which makes me think they are not playing clean, maybe things will play out differently, but it’s fishy the way they are communicating. LR will shine when layer 2 gets adopted, but at the moment this GS/LR partnership was all speculation and the seed was planted by LR and Byron.

The Super Good

Vitalik talks about LRC -> https://youtu.be/b1m_PTVxD-s?t=5303

At 1:28:28, talks about how Loopring is coming close to providing ultra-cheap transactions on L2, and how it'll only get cheaper once sharding comes along!

For 2022

  • Loopheads NFT airdrop for early adopters
  • Loopring HQ launching in the Metaverse
  • Counterfactual NFTs now on Loopring L2
  • More direct-to-Loopring L2 integrations
  • Multi-Layer Wallets
  • Loopring DAO
  • Further Exchange Improvements

There should be no TA or PT for this asset - price moves down because it is impacted by multiple layers -> ETH volatility, GME volatility, Stocks and Crypto volatility - not a pretty sign. But if you invested solely into the asset, you should stay tight and just hold, because essentially it is the future. Looking to scoop anything below 1.5 line - below 1 USD it’s a steal.