Making a cryptocurrency exchange competitive is not an easy task these days. Granted, most everyday consumers want access to quick, easy, and convenient payment methods when it comes to exchanging fiat currency and digital currency. However, most of these exchange platforms are fighting regulatory measures, especially in the US. Laissez Faire is a different creature, as this exchange is legal in 49 US States, and they recently added a USD/Dash trading pair.
Also read: Fiat Currency Vs Digital Currency
Laissez Faire Exchange Keeps on Growing
Earlier in the year, we reported on how the Laissez Faire virtual currency exchange went live. After obtaining confirmation, the platform was legal in 49 different US States – except New York for obvious reasons – it went relatively quiet on the progress of this exchange. With such a huge market to tap into, it was only a matter of time until Laissez Faire made some headlines once again.
Shortly after announcing the launch of the LZF platform, company representatives headed over to the DashTalk forums and asked whether or not community members wanted to see a USD/Dash market on the exchange. With Laissez Faire offering FDIC insurance on all USD deposits, combined with a 15-minute deposit and withdrawal service via wire, LZF could be an interesting platform for Dash.
Popular digital currencies, like Bitcoin and Litecoin, have been fighting tooth and nail to find new customers willing to purchase cryptocurrency in exchange for fiat. Altcoins, such as Dash, have an even more difficult time to offer this type of functionality, as it usually depends on the exchange platform itself to enable this feature.
Seeing how Laissez Faire was open to the idea from the start – and even proposed the addition themselves – it goes to show there seems to be a genuine market for Dash. After leaving the question open on DashTalk forum a while, a few community members voted in the poll, and the response was very positive.
One of the main concerns of an exchange platform coming out-of-the-blue with such a proposal is whether or not Laissez Faire can generate enough liquidity to make this effort worthwhile. At this time, most of the cryptocurrency trading in fiat markets happens on a handful of problems, and Laissez Faire is facing stiff competition in this market.
It is impossible to see the trading volume on the front page of the LZF platform, as users need to register an account before being given access to more details. What we do know is how the Laissez Faire exchange added a USD/Dash trading pair a few days ago. It will be interesting to see how much volume this platform can generate in the next few months.
Creating More Fair Trading Markets
Laissez Faire is a slightly different exchange from most, as it offers users an incentive algorithm. Incorporating this tool should, hopefully, create “healthy” trading behavior, as any trader is automatically compensated. A compensation in royalties will occur when orders are placed to close the bid-ask spread on the exchange.
Bitcoin is often touted for its price volatility, which is attracts both positive and negative attention from everyday consumers. Due to these incentives, Laissez Faire wants to create a more stable Bitcoin/flat market, as the gap between buying and selling prices becomes smaller.
“Paying royalties for every order placed is a psychological factor to incentivize healthy market behavior among traders. By paying a royalty to the existing orders when you place a new order, you are essentially doing two things:  You are rewarding the existing, real orders that have remained in the market, thus incentivizing them to continue to remain in the market until they execute, and,  You are making a real commitment towards keeping your order in the market until it executes (adding real liquidity).” – Laissez Faire Co-founder Daniel Pusateri explains.
Images courtesy of Shutterstock, Dash, LZF
Also published on Medium.