Loopring crypto is up 666% in the last month. Is this just the beginning of a Bitcoin-like breakout for this crypto, or have all the biggest gains been made?
You could wake up in the morning with huge gains. The next morning, you could wake up with major losses.
Sometimes these gains are a real indicator of a crypto's future; sometimes they're temporary.
Other times, rumors start spreading through Internet chatrooms and social media that send cryptocurrencies soaring based on pure speculation.
But there are ways to separate the phony coins from the real deal.
Do the projects have established leadership? Do they aim to solve a real-world problem? Is the coin's white paper compelling?
This helps weed out the meme coins powered by speculators aiming to score a quick buck from serious coins with real potential.
To help you see which one Loopring is, we'll show you everything you need to know about this Ethereum-based coin...
How Loopring Could Transform Crypto Trading
Founded by former senior software engineer and tech lead at Google Daniel Wang, Loopring is a Chinese crypto that aims to be more than a digital currency.
His focus pivoted to big data, high-performance systems, blockchain, cryptocurrency, and decentralized trading technologies. Through problems he ran into with this experience, he created Loopring.
Daniel's partner, Jay Zhou, might not have the in-depth engineering experience he does, but he brings valuable experience in online payment and financial operations, with a focus in risk management and innovative solutions.
He's worked at PayPal, in risk management for Ernst & Young, and has even published articles on blockchain technology.
In fact, he mentors a blockchain course at his alma mater, Stanford University.
But Loopring has more going for it than strong leadership - it's solving a problem.
Loopring is a network designed to create new high-speed, low-cost crypto exchanges.
It was created when two engineers abandoned the idea of creating a centralized exchange in 2014. They started working on a platform that would solve many of the issues that come with trading platforms like centralized and decentralized exchanges.
The main problems they sought to eliminate were security, transparency, and liquidity.
In doing so, it also became cheaper and more efficient than many other platforms. It cuts out major costs by allowing users to dodge hefty Ethereum gas fees while offering high security levels.
It also claims to process over 2,000 trades a second, making it far more efficient than most major platforms right now.
To ensure security and transparency, funds remain in the user's wallet and are never locked by orders. This gives the trader complete control over their funds while allowing them to cancel, trim, or increase an order before it's executed.
When your order is matched, smart contracts ensure that the funds in your wallet will be exchanged for the traded coins, and the off-chain relays maintain an order book reflecting these orders to ring-miners.
Ring miners make sure the order can be filled until the desired trades are completed for all parties.
For compensation, the ring miners can receive a small fee in LRC (Loopring's token) or a split margin on the final purchasing amount of an order.
For example, if you wanted to trade 1 ETH for 10 NEO, but the ring miner found a trade for 11 NEO, he could split part of that margin with you, or choose to take the LRC fee stated when the order was sent.
To help guide this growing network, Loopring has solid leadership with experience and potential.
While the platform is promising, the real reason Loopring coin's price is skyrocketing is coming from a potential partnership with a household name...
Why Loopring Is Exciting Investors
Loopring's massive 666% run since October is thanks in part to rumors of a potential partnership with GameStop.
GME bulls have long speculated over the company pivoting into the non-fungible token (NFT) market. GameStop is clearly trying to modernize its business model, which helped fuel the hype behind the stock, and a pivot into the NFT market makes sense.
And Loopring could be a big part of that. Loopring's protocol code even mentions GameStop.
While that's not definitive proof of a partnership, it's a pretty solid indicator there is some relationship there.
If it is true, however, it could be huge. If Loopring and GameStop teamed up and cracked the code for mass user adoption of NFTs, it could be groundbreaking.
The idea here is that GameStop could set up its own NFT exchange using the Loopring network. That would match GameStop's brand and size with Loopring's low-cost, high-speed network, making NFT adoption even more mainstream.
It would vastly limit the barriers to entry by streamlining the process on a single network.
When purchasing an NFT now, you need to set up a crypto wallet, put funds in it, and then you need to connect that wallet to the platform you're purchasing from. Then you get hit with a gas fee which can be even more expensive than the NFT you're purchasing in the first place.
It's a pain, and these days, users want simpler functionality for this process to appeal to a mass audience of buyers.
Loopring already has a trading network that solve these problems, and GameStop has the brand to make it popular.
That combination has investors exciting about the potential behind LRC.
Here's what Loopring price predictions look like right now...
Loopring Price Prediction
LRC prices were doing fine prior to the GameStop rumors. Prices went from $0.10 in 2020 to over $0.50 in 2021.
Since the GameStop rumors have broken, analysts are having a hard time making a Loopring price prediction for next year.
DigitalCoin predicts LRC could reach $5.13 by the end of the year, with a five-year forecast at $11.11.
However, Wallet Investors doesn't see much future in the coin, with a one-year forecast dropping down to $1.82.
The truth is it's hard to predict which direction it will trend in the next year alone. The GameStop rumors continue to fuel massive surges, but huge pops like these could create instability.
That doesn't mean Loopring doesn't have a future. It might be a temporary victim of the Internet; however, it offers a legitimate service that will only be more sought after as the crypto market grows and more people are trading.
While Loopring has some promising upside, our crypto experts are keying in on some different coins...
These Two Tiny Cryptos Are Set to Crush Bitcoin's Gains by 10X
Bitcoin might be the "buy-and-hold" asset of the decade, but it's not the end all, be all of crypto.
There are two tiny coins from a whole new class of cryptocurrencies, and they could very well crush Bitcoin's performance by 10X over the year ahead.
They're based on a technology that's light years ahead of Bitcoin.