Coin Liquidity Solutions Reviewed

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Coin liquidity solution (CLS) is a software service solution company, which creates favorable conditions for organic trading for cryptocurrency-powered blockchain projects. 

The overarching solution of CLS is to provide access to liquidity for cryptocurrency projects, such that there is deep enough liquidity and a tight spread for these assets.


About CLS
CLS was Launched in 2017 when market making in the crypto market was a lot less effective and coordinated than it is with overall financial industry standards. The idea was to help create smooth and easy access to liquidity. 

The CLS client customer base involves blockchain startups seeking liquidity help, market exposure, and recognition for their assets and also exchanges too in need of tools. 

The CLS relationship with its client base involves a partnership-type relationship. As of the time of writing, CLS has over 90 clients and is integrated across over 120 exchanges. 

At the moment of writing, some of CLS partners include Binance, Probit, Liquid, HitBTC, Loopring, Stex, Crypto.com, BitFinex, and so on.

CLS And Its Liquidity Solution
Liquidity is the lifeblood of every market and is also a critical subject in the crypto market. A cliche version of this statement will be “Cash Flow is King.” Similarly, for every asset class out there, liquidity is an integral part. 

Investors and traders want to be sure that when they buy a token they can sell it for a value worth much more or at least a price worth the exact value they paid for it at purchase. 

Providing new or existing cryptocurrencies with such a solution is what CLS is about. The CLS solution revolves around 3 solutions. These solution categories are:

  • Market making and liquidity management
  • Fundraising and marketing
  • Exchange algorithmic trading solution

Market Making And Liquidity Management On CLS
As earlier stated the CLS project is premised on the goal of making trading conditions favorable for investors that want to buy in on a token/coin CLS is in partnership with. 
Some objectives that will be seen with a token/coin; having a market-making and liquidity management fix will be:

  • Order books management: this entails making funds available in active trading zones, which is a 10% price from above and below the spread prices.
  • Tightening of spread support price: CLS helps keep the spreading support within the 0.5% to 2% as spread support price.
  • Providing trade volume support: CLS provides liquidity in relation 10 to 1, to liquidity in order books.
  • Active risk management service: for high-frequency trades (HFT) CLS provides real-time risk management help to help resolve HFT attacks if and when they arise with a partner's token/coin pairs.
  • Liquidity support: CLS also provides liquidity support to help reduce volatility, so users can trade their partners' tokens with minimal spread risks.
  • Closing arbitrage gaps: Price differences across markets could skew the volatility of an asset across several exchanges. Hence, CLS provides arbitrage solutions that help close the price gaps of an asset across different exchanges.

Fundraising And Marketing
Almost every cryptocurrency project requires that initial Kickstarter fund both for product execution and managerial expense and the initial liquidity to give its token that initial market entry liquidity.


CLS helps facilitate the involvement of prospective investors with the liquidity needed by their partners. Also with marketing assistance, CLS provides volumes, spread, and liquidity scores metrics to help their partners get good rankings on CMC and CoinGecko.


Exchange Algorithmic Trading Solution
CLS also partners with exchanges to provide cutting-edge trading tools for a good user experience for their exchange partners.


These involve tools like dynamic volume bars without gaps, and which have also had random volume in trade history and organic candles and also very comprehensive market data graphs.


Conclusion
Liquidity is the heart of every market, which is what every blockchain-powered cryptocurrency project owner must phase. Having a professional and reputable company shoulder that responsibility is the meat or what CLS is about. Why we may not vouch for this company, you may want to judge them on their partnership quality and years in the industry.


Image Sourced from BTC Peers

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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