There are over 2,800 cryptocurrency assets having a cumulative market of more than 20,960 pairs which are tradeable across more than 250 cryptocurrency exchanges. Perhaps, if you’re new to the cryptocurrency industry and maybe asking the usual question: why are there so many exchanges? In today’s topic, we will be writing an in-depth LATOKEN review for your convenience.
The simple answer is ‘two reasons: Liquidity and Jurisdiction’. This LATOKEN review will explore how to use LATOKEN exchange, its native asset – LA token, and LATOKEN fees. A further review of possible LATOKEN scam accusations will help both new and old users evaluate their fate.
What is LATOKEN?
So what is LATOKEN or why use LATOKEN exchange? The LATOKEN is a liquid asset token (LAT) platform that was developed to allow cryptocurrency users to diversify their portfolios by allowing them to access both real-world and virtual assets which were tokenized and tradeable on the exchange.
The Estonia-based platform was founded in 2017 by CEO Valentin Preobrazhensky along with 3 other reputable team members until they grew to over 35 members. From the beginning, the LAT’s mission deviated a little further from the raison d’etre of a traditional cryptocurrency exchange, at least that’s what their initial mission statement proposed. It was supposed to serve as a multi-asset crypto trading platform, however, down the line of their development, the exchange became more of a cryptocurrency exchange platform – dealing mostly with virtual asset trading.
The exchange attracted important figures at the early stage of development, with its advisory board seats filled with the likes of Kenneth Goodwin who was former Senior Compliance Advisor to the Chief Compliance Officer of the U.S. Federal Reserve Bank.
During the early developments, the ambitious LAT platform attempted to tokenize shares of blue-chip companies such as Apple, Amazon, and Tesla, as well as commodities such as oil, gold, and silver. The objective was to access trillions of dollars’ worth of assets that included 5 classes of real assets — equities, real estate, loans, commodities and works of art.
However, they experienced some difficulties, and perhaps due to regulations, funding constraints, and possibly the bearish trends of the cryptocurrency market their vision may have been stalled.
Though the LAT exchange platform may have not attained its prime objectives just yet, it has achieved quite a few things through its early days:
While the LAT exchange may have lost some of its early lusters, it still sits among the top 20 exchanges by adjusted 24-hour trade volume. It records an average daily volume of $1 billion USD worth of trades from 380 trade markets.
Although, trade volume alone isn’t a great way to measure the performance of cryptocurrency exchanges as more recently there have been increasing allegations of wash trading and fake volumes on cryptocurrency exchanges. One may go further to assess the usability of the exchange, the quality of projects being listed, and the security features as well as the exchange’s KYC/AML policies.
IEO Launchpad DEX
The exchange also features a Launchpad for startups to conduct their initial exchange offerings. Data reveals a total of 400,000 users have accessed the IEO platform and have invested in over 130 startups, making it one of the successful Launchpads out there. It also recently released the public beta phase of its decentralized exchange, although it doesn’t seem to be operational as of yet as there is no trading history; moreover, users are limited on deposits and withdrawals.
The user interface is a multi-lingual platform and can be accessed in English, Chinese, Korean, Vietnamese and Indonesian languages. The language preference can be changed from the drop-down menu located at the top-right of the page.
The LATOKEN exchange isn’t complicated as it has a simple landing page from which users can access the trading platform, the IEO Launchpad, wallet, LA airdrop, and LADEX. It also features a support page containing help topics compiled as FAQs that could guide users on how to resolve common problems experienced while using the exchange.
For more complicated problems not covered by the FAQs, users can contact the general support by either creating an offline ticket or contacting the support team either through the official email or via Telegram messenger.
Trading on LATOKEN Exchange
Once an account is created, the deposit and withdrawal button can be accessed from the top-right side of the page. Trading pairs include BTC, ETH, LA, USDT, TRX, and TURBO. Fiat deposits and withdrawal, as well as trading, are not currently activated on the platform.
Depositing assets are usually dependent on the blockchain network, however, during withdrawal, the transaction will go through several security checks to ensure that the user complies with the platform’s withdrawal policies.
An initial 24-hour withdrawal limit of 1,000 USD in crypto is placed on Tier 0 account. For Tier 1 and 2 accounts. Users are required to complete different know your customer (KYC) verification steps before they are allowed to withdraw as much as 10,000 and 100,000 USD respectively. More so, for users with Tier 2 accounts, they are supposedly allowed to transact fiat withdrawal and deposits and are granted access to token sales on the exchange.
For Tier 3 accounts (currently disabled), users have the privilege of withdrawing up to 500,000 USD in crypto per day. These VIPs are also granted access to full platform features without limitations.
Various LATOKEN reviews report that the platform uses an Advanced Encryption Standard (AES-256) algorithm to secure its wallets. More so, the databases holding account passwords are said to be encrypted with Salted SHA-256.
For the security of funds, the platform holds the exchange private keys – being a centralized exchange, and holds all users’ funds either in a hot or multi-sig cold wallet accessible by the team. Funds stored on exchanges puts users’ assets in the cross-hairs of malicious actors such as hackers, as cryptocurrency exchanges are oftentimes their targets. Perhaps when the LADEX is fully operational, users will then be able to freely control the use of their assets without the fear of it being compromised on the exchange.
Users can further protect their accounts and prevent third-party access by setting up email and phone verifications, as well as a google app authenticator.
LATOKEN KYC/AML Policies
As with most exchange platforms, LATOKEN exchange is KYC and AML compliant. More so, being an Estonia-based company, they are said to be compliant with the KYC and AML policies of the jurisdiction.
While trading, LATOKEN fees are set at 0.05% for all pairs to the LA token while a 0.1% fee is set for either makers or takers for all other trading pairs. There are no deposit fees but for withdrawals, the platform sets a dynamic fee based on the blockchain network.
LATOKEN exchange has its own utility, the LA token, which is designed to facilitate transactions both as a quote currency and used to settled transaction fees on the platform. The LATOKEN exchange conducted its initial coin offering in 2017 where it raised about 20 million USD by selling over 57 million LA tokens.
There are currently about 380 million LA tokens in circulation out of a total supply of 400 million and a maximum supply of 1 billion tokens. According to Etherscan.io, the LA token is currently distributed to over 4,300 addresses with LATOKEN holding about 84% of the total distribution. LATOKEN airdrops LA token through its community referral tasks.
In the early days, LA token was listed on other exchanges to include KuCoin, OkEx, Coinexchange, HitBTC, EtherDelta, BigOne; however, cryptocurrency data provider CoinMarketCap now reports only 2 other exchanges apart from the native exchange where LA token is listed: HitBTC and CoinExchange.
LATOKEN Scam Accusations
It’s not a strange thing in the industry to have people call a project a scam, especially when the project falls short of expectations. However, the legitimacy of such claims, as well as the number of people hurt by a project, does call for collaborate due diligence on the asset owners’ part. This part of the LATOKEN review looks into various feedbacks from the cryptocurrency community and takes account of the real-time user experiences to determine if LATOKEN is safe to trade on.
While scanning for possible LATOKEN scam accusations, the most prevalent complaints came from users who had issues with customer support when transactions go wrong, especially due to deposit errors. More so, other users complained that LATOKEN listed scam projects, which perhaps questions the exchange’s due diligence. Although, after listing, some projects underperform and do not gain trading traction after a while; besides, there are numerous other factors to consider as prices of assets on an exchange decline.
LATOKEN Review: The Pros
- The exchange has good liquidity and stands in the top 100 exchanges by daily trading volume.
- The user interface is well simplified for even newbies to quickly find their way around.
- The IEO success rate and exposure may attract prospects.
LATOKEN Review: The Cons
- Questionable assets being listed on the exchange lowers LATOKEN exchange reputation.
- Too much of the circulating supply of the LA token is held by the exchange.
- Poor support makes it difficult to trust resolutions would be carried out promptly if users encounter problems.
- LATOKEN scam accusations suggesting wash trade can deter new users if volumes are misleading.
- Too many poor LATOKEN reviews are a huge deterring factor.
- There are no fiat gateways currently integrated with the exchange.
Compared to other exchanges, LATOKEN is an okay option to acquire cryptos that can’t be found elsewhere. But based on the pros and cons we wouldn’t choose them over more popular options like Binance.
- User Interface
- Good liquidity for many tokens
- Simple user interface
- Access to new projects
- Listing questionable assets
- Many poor reviews online
- No fiat gateway
- Poor support
Jesus Cedeño is a certified doctor turned cryptocurrency expert, writer, and investor who lives in New York City. Jesús specializes in cryptocurrency product reviews, tutorials & technical analysis. Follow him on LinkedIn to stay up to date on his latest work on blockchain, decentralization and crypto investments.