Can Compromised Liquid Sidechain Network Rebound Exploited Digital Assets Hack? | Update 2022

10 min read

Liquid has been under some heat towards the end of August 2021 because they had been compromised. Which took a hefty hard hit in the tune of $97 million. However, if we take a deeper look into this digital asset exchange and breakdown who Liquid as a legitimate cryptocurrency. Maybe, as a blockchain, hope is not lost.

Fiat cash is accepted by Liquid, a cryptocurrency exchange. Fiat and crypto-based trading pairs are available, and deposits and purchases can be made in a number of different fiat currencies, as well it is possible to trade spot, margin, CFDs and futures using Liquid. Visa cards can also be used for credit card purchases. After Quoined acquired Quoinex and Cryptos, Liquid was formed in 2018.

Founded in 2014, Quoine and Quoinex have a long history. Bitcoin has fundamentally altered the way commercial transactions are conducted in the world and has come to be regarded as an innovation Market participants are increasingly turning to virtual exchange systems to trade commodities, which bodes well for bitcoin exchange platforms.

Many companies have sprung up in response to the increased need for tiny bitcoin exchange platforms. Despite the rise in client demands, few companies have been able to meet them.

What Is Liquid?

The problems facing traders in the financial industry can be solved by liquid. In the field of cryptocurrency-fiat exchanges, the firm began providing exceptional service in 2014, and it continues to do so. This corporation is based in Tokyo, Japan, and is owned by Quoine. A virtual exchange platform license was awarded in 2017 by the Japan Financial Services Agency.

Liquid’s mission is to create a safe crypto ecosystem where every trader and consumer can enjoy the benefits of safe financial transactions and brilliant blockchain technology, no matter who they are. An organization’s competitive edge comes from being one of the Top Ten Regulated Crypto Platforms.

As well as excellent services, its clients are guaranteed to feel safe. Moreover, thanks to Liquid’s creative interface that it’s been able to incorporate useful features and measures that enable for a high level of user happiness is a priority for Liquid.

What Is Liquid Earned?

Traders and users can benefit from Liquid Earn, a powerful tool that allows them to As the name suggests, Liquid Earn’s primary goal is to create income opportunities on Bitcoin, Ethereum, and other currency exchanges are all supported by Liquid Earn, which offers incentives on crypto transactions.

How Does Liquid Earn Work?

On Liquid, traders can access passive income called Liquid Earn By using this solution; customers have improved their residual revenue on assets and cryptocurrencies. Since every Liquid trader holds crypto assets, Liquid uses these assets to generate passive income for its users via their Liquid stakes. 

Liquid Fees

Traders and clients engage with Liquid’s pricing structure more effectively since it reduces trading prices. According to the volume of trades made by the user, trading fees are charged To encourage the use of QASH, the group waives trading fees for transactions Traders can also take advantage of referral discounts, which helps to strengthen their relationship with About 0.3 percent of Liquid’s cost is deducted based on trading volume. Traders that trade less than $10,000 per month are also exempt from fees.

A small fee of 0.10 percent is charged on fiat transactions, but deposits and withdrawals are typically free. Also, Liquid understands how important it is to charge as little as possible Bitcoin withdrawals presently cost roughly 0.0007BTC, while Ethereum withdrawals cost around 0.01ETH at this time. Liquid takes a wide range of payment Paying using a credit card or a bank deposit is possible, although there may be extra fees associated with it

Liquid Deposit Methods:

As a result, Liquid supports Deposits made with a credit card are not possibly the first of its type, Liquid is a FIO deposit address-enabled platform. For the most part, depositing crypto into an exchange requires typing a seemingly never-ending string of numbers and one can’t rule out the chance of missing a number or entering it incorrectly.

Mistyping one character in a deposit address of forty characters can result in the crypto being sent to the wrong address. However, starting on January 13, 2021, users will be able to register their FIO Similar to an email address, this removes these issues and promotes a safe and hassle-free deposit handling.

Liquid Mobile App

It wouldn’t be a comprehensive Liquid review without a look at its mobile app. In addition to being user-friendly, the Liquid app makes it easy for traders to access their crypto accounts. An Apple App Store or Google Play download is available. In addition, the programme is easy-to-use and efficient, allowing for excellent trade interactions.

Liquid Customer Support

If you have any queries, Liquid has a very user-friendly digital support section that’s packed full of articles that address there’s also an email support service that normally responds within a few hours if that doesn’t work. Reviews indicate that trading on Liquid is often a positive experience. As part of its mission, the organization’s academy aims to educate Customers can reach out to a customer service representative via email, phone, or So far, the platform’s customer service has received positive feedback.

Liquid Pros:

Users, whether makers or takers, benefit from complete transparency through the unique order book system called the ‘World Book.’ A global network of liquidity resources ensures Liquid users a high level of liquidity and price matching.

LQC has been renamed as the exchange’s own cryptocurrency, replacing the utility token QASH. As the principal settlement currency across all of Liquid’s services, LQC will serve as the For LQC holders; Liquid wants to develop a loyalty programme with a variety of prizes and perks. For Liquid to be self-sustaining, especially in Asian markets, it needs a robust currency.

API connectivity allows customers to effortlessly integrate their Liquid brokerage account with other apps, such as those that offer trading indicators and automated techniques.

By providing their users with updates, news, and discussions regarding changes in the cryptocurrency market, Liquid adds value to

As a result, the majority of Liquid’s trading activity is centered on its fiat-crypto trading pairings, which are To bridge the fiat-crypto divide, Liquid is applying for a banking license.

For a charge, Liquid users can lend their assets to margin traders. Liquid allows its users to post their holdings for sale at a competitive price because it does not charge a fee to producers.

Liquid cons:

There is a three-day wait for fiat withdrawals on Liquid, and a For those who have an urgent need for their finances, this can be annoying or uncomfortable. In order to deposit funds, users do not need to conduct KYC. However, they must perform KYC in order Withdrawing assets through Liquid might be costly and difficult because to the withdrawal fee and payment processing expenses.

U.S. Liquid customers who reside in the United States are unable to engage in fiat to cryptocurrency trade due Because Liquid’s key competitive edge is in fiat trading, this has resulted in fewer clients in the United States.

Security Procedure

In recent years, hackers and fraudulent operations have become a major concern for investors in the crypto market. The upshot is that both experienced and inexperienced traders take the security measures and protocols implemented by trading platforms very seriously. Investors do this to ensure the security of their finances and personal information.

Clients’ sensitive personal information and funds are protected at all costs on Liquid’s exchange platform. As a result, the company’s security policies and controls are sufficient to thwart numerous cyber-attacks and third-party access To combat various criminal activities such as identity theft, terrorist funding, money laundering, etc., The liquid is a registered and licensed exchange platform under the authority of the Japanese Financial Services Agency. It complies with the Anti-Money Laundering and Know Your Customer (KYC) policies.

KYC verification

On registration, each client is asked to provide proof of address, a passport photo, and proof of identification such as an overseas passport or a driver’s license.

Cold wallet

Liquid stores and safeguard its entire digital assets in an offline cold wallet to ensure proper protection of clients’ investments.

  • No API withdrawals
  • Crypto withdrawal address whitelist

Trading Option

As a fiat to crypto exchange platform, Liquid’s trading activities are dominated by JPY and USD. JPY and USD are not the only fiat currency trading pairings offered by the exchange company, which also lists over 100 cryptocurrencies on its trading platform. As a result, Liquid’s clients have access to a variety of trading options, allowing them to take full advantage of the Trades that are available through Liquid include: Spot and Margin trading, future and CD trading.

Margin trading

Liquid offers its clients the opportunity to trade numerous fiat-based trading pairs with a maximum leverage of 25X by utilizing its margin trading services. Trading cryptocurrency pairings, on the other hand, does not allow clients to employ margin for a preset interest rate fee, Liquid exchange platform clients can lend their assets to multiple margin traders.

Perpetual Futures

Permanent futures were recently added to the Liquid trading platform as one of its newest features. Known as the P-BTC, Liquid’s Bitcoin-USD perpetual futures contract is intended at the Bitcoin-USD market All other contracts offered by exchanges do not work the same way as these perpetual futures What makes P-BTC contracts unique is that they are valued in Bitcoin instead of US Dollars. Clients who wish to trade P-BTC contracts can do so with up to 100X leverage.

Infinity (CFD trading)

The Liquid exchange platform has a feature called Infinity trading that is simply amazing CFDs, which are closely tied to futures trading, can be traded with Infinity Trading. Since infinite trading involves betting on the price of goods rather than purchasing them, investors and traders are able to do Leverage up to 100x is available on the BTC-JPY and BTC-USD trading pairs on the Liquid exchange platform.


On the list of top crypto exchange platforms in terms of daily trading volume, Liquid is one of the top crypto exchanges. On the 20th of December 2018, Liquid ranked 22nd on Coinmarketcap’s list, with a daily trading volume of $277 million. A study at the Liquid exchange platform’s one-month trading volume puts it in the 20th position with a trading volume of $4 billion in December 2018. To illustrate, on the 23rd of March 2020, Liquid registered a daily trading volume of $162 million ranking 67th, which is significantly lower than that of December 2018 (which was $193 million).

Commission and Fees

Trades and investments on exchange platforms are expected to incur various charges and fees from traders and investors. As a result, traders need to be cautious when it comes to trading on exchanges that charge very high fees, as it is difficult to generate significant gains In order for novice investors to be successful, they must grasp how crypto exchanges arrange their trading fees.

Trading fees are divided into two categories: takers charge and makers fee. When trades are executed, the maker’s order appears in the order book, and the taker takes the maker’s order as it appears in the order book. As a result of the marker’s order creating market liquidity, the term “maker” was coined.

Liquid’s trading fees

For both its takers fee and creator’s fee, Liquid charges a flat cost. Fees for takers and manufacturers are capped at 0.3 percent. A decrease in takers’ and makers’ costs, on the other hand, comes with an increase in monthly trading volume. Due to the low monthly trading volume (less than $10,000), Liquid waives their maker fees, making it free for certain clients. When clients pay their fees with Liquid Coin, commissions and fees are cut in half.

Liquid’s Futures fees

Liquid’s trading fees for its perpetual futures are substantially different from those levied by A taker cost of 0.12 percent is charged on the exchange platform’s perpetual futures markets, whereas a maker fee of 0.00 percent Despite this, Liquid went one step further and lowered the makers charge to a negative value for clients As an added bonus, clients who pay the perpetual futures trading fees using the Liquid Coin also receive a discount on the taker fees.

Liquid’s Withdrawal and Deposit fees

Despite the fact that the Liquid exchange platform enables free deposits of both cryptocurrencies and fiat currencies, the customary network fees incurred on deposits are expected to be covered by its clientele Withdrawals are subject to a 0.10 percent withdrawal fee, with a minimum fee of $15. For crypto withdrawals, the fees are reasonable, covering all network expenses associated with crypto withdrawals, including the fee for it levies a withdrawal fee of 0.0007 BTC for every Bitcoin withdrawal and 0.01ETH for every Ethereum withdrawal on the exchange platform.

Withdrawal and Deposit

Cryptocurrency and fiat currency deposits and withdrawals are allowed on the Liquid exchange platform. Fiat currencies can be withdrawn and deposited using bank wire transfers and credit or debit cards. Clients are required to link their bank account directly to their Liquid account in order to make withdrawals and deposits of fiat currencies. In addition, the payment processor who oversees and processes the transaction varies based on the fiat currency being deposited.

In addition, Swapforex handles the deposit of US dollars (USD), Australian dollars (AUD), Singapore dollars (SGD), and Euros (EUR). JPY and EUR deposits are handled by SBI Japan and UAB Mister tango respectively. Clients can deposit and withdraw digital currency from their external wallets into their Liquid trading account at any time. If you’re interested in utilizing Visa debit or credit cards to make a purchase on the Liquid platform, you’re not alone. Charges for the use of credit and debit cards, on the other hand, it’s true that every purchase comes with a conversion rate and a credit card fee, however they are simply calculated and presented to clients before deal.

Is Liquid Trustworthy?

As a crypto exchange platform, Liquid is unques Registration with the Japanese Financial Agency solidifies its market position. Risks are always there in financial trading, though. No fintech platform is 100% secure, but the business does go to great efforts to ensure money is kept safe in the virtual environment. The platform is equipped with all the necessary tools to build trust with its users.

Trading Platform:

Traders and investors need to analyses the trading platform supplied by a crypto exchange platform before making a decision. As a result, the trading platform is crucial because it is primarily responsible for overseeing and regulating the whole trading activity performed by for this reason, investors must choose an exchange platform with a high-quality trading platform in order to provide a positive trading experience.

It is expected that the trading platforms supplied by different exchange platforms will differ in terms of design, user interface, customization, simplicity of navigation, and many other aspects of the trading platform’s functionality. These discrepancies between trading platforms are due to the fact that different characteristics are given more importance by different exchanges

Whatever the variations, a quality trading platform should be straightforward, easy to use and integrate key trading features, regardless of the differences. In addition to the Trading View Charts, the Liquid Exchange Platform features a simple and attractive trading interface. So that new traders and investors do not feel intimidated by the trading platform, the exchange platform guarantees that the dashboard does not become cluttered with figures and display selling and buying boxes, price charts of different cryptocurrency pairs as well as an order history and order book may be found on the Web-based trading platform.

As a whole, the trading platform is quite effective in terms of trade analysis. It is also very user-friendly there is a mobile application called Liquid Pro that has been developed by the Liquid platform. In addition to promoting on-the-move trading, the mobile app offers similar trading services and features to customers Downloadable on iOS and Android devices, the mobile app is available for both iOS and android device.

Final Thoughts:

As one of the most reputable and high-performing exchange platforms in the crypto sector, Liquid is a great choice According to the Japanese Financial Services Agency, the site has complied with all regulations and legislation, including delisting up to 30 digital coins in order to remain compliant. The total features and services supplied by the Liquid exchange platform are quite enticing and provide investors with the comfort, flexibility, and trust they need to reach their financial goals in the crypto market. 

Although the material contained in this website was prepared based on information from public and private sources that believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and expressly disclaims any liability for the accuracy and completeness of the information contained in this website.