Liquid is a centralized cryptocurrency exchange. Established in 2014 by QUOINE, the platform offers spot and margin trading, as well as direct crypto and fiat purchases. The Liquid cryptocurrency exchange is KYC-compliant.
Liquid services are fully or partially restricted in some countries, including the USA. Japan-based customers are only granted access to Liquid trading pairs that have been approved by the Japan Financial Services Agency (JFSA).
As of June 2022, non-Singapore residents cannot register new accounts on Liquid Global. However, existing users can still access some or all of the exchange services, depending on regional restrictions.
Markets
The Liquid cryptocurrency exchange supports both crypto-crypto and crypto-fiat trading. Since the platform is regulated by Japanese financial authorities, it offers a smaller digital asset pool than other global exchanges. Overall, there are more than 110 Liquid trading pairs.
The two main services provided by the Liquid crypto exchange are spot and margin trading. Using margin trading, customers can use up to 100x leverage on certain crypto-fiat trading pairs. Additionally, the platform supports Bitcoin CFD trading with up to 25x leverage in some regions.
Customers that hold the platform’s native QASH token are eligible for a 50% Liquid crypto fees discount. Additional reductions apply to users that have joined the referral program. The referees can also earn a 30% commission on their trade fees.
The fee system has 14 tiers, going from LVL 0 to LVL 13. The customer payment rate uses the maker-taker model, and the level is determined by the 30-day Liquid trade value. All fees are subject to change at the discretion of the Liquid cryptocurrency exchange.
Liquid exchange fees use the maker-taker model. Starting at LVL 8 up to LVL 13, at a minimum 30-day Liquid volume of $25 million, makers aren’t subject to any fees. The taker fees are reduced progressively at each level, going from 0.09% at LVL 8 to 0.03% at LVL 13.
The LVL 0 rate of the Liquid spot and margin fees is 0% for makers and 0.3% for takers. At this level, the Liquid trade volume does not exceed $10,000. With the QASH discount, the taker fee is brought down to 0.15%, while the combined QASH+Referral discount can reduce it to 0.135%.
Additionally, margin traders must pay margin lending rates. The opening interest is set up when the trader opens their position. For every day that the position is kept open, a daily interest rate applies. The interest rate can fluctuate and isn’t fixed due to changing market conditions.
Customers are not charged any deposit fees on crypto assets. However, customers that wish to make fiat deposits may be subject to third-party fees from their bank. The minimum required Liquid crypto price on a single withdrawal is $15.
The flat withdrawal rate is 10%. Crypto withdrawals between Liquid wallets are free. However, if customers want to withdraw ETH or ERC-20 tokens, they must pay the network fee, as well as the Liquid exchange fees. The network fee is dynamic and depends on the live network traffic.
About the Company
The Liquid exchange was founded in 2014 in Japan by Mike Kayamori and Mario Gomez Lozada. In September 2017, it was licensed by the Japan Financial Services Agency, making it the first cryptocurrency exchange to achieve this status. The company headquarters are in Tokyo, Japan.
Until 2018, QUOINE operated two exchange platforms – Quoinex (bitcoin-fiat exchange) and Qryptos (crypto-crypto exchange). However, in September of that year, the two were merged into the current Liquid cryptocurrency exchange.
In April 2019, the Liquid crypto exchange raised an accumulated amount of over $1 billion in investments, granting it the tech unicorn status.
In August 2021, the Liquid network was attacked, leading to a temporary suspension of operations. During the attack, hackers accessed exchange funds that were kept in digital storage. The stolen Liquid crypto price was valued at around $90 million.
In 2022, the Liquid crypto exchange was bought by FTX. Allegedly, the deal was worth up to $200 million.
Mike Kayamori is the former CEO of QUOINE, the company behind the Liquid cryptocurrency exchange. He has more than two decades of experience in the financial sector in the APAC region. In April 2022, after QUOINE was acquired by FTX, he became the CEO of FTX Japan.
Mario Gomez Lozada is the former President and CTO of QUINE. He’s an entrepreneur who has worked in traditional and decentralized finance at companies such as Merrill Lynch and Credit Suisse. He stepped away from the Liquid crypto exchange in May 2020. Gomez Lozada is currently the Head of Product & Operations at PowerTrade.
