Level01 Technologies, developer of the 1st DeFi Platform for AI-Guided Derivatives Trading, launched its mobile application on Google Play recently.
Following news of the launch, the mobile application - with their native token LVX, presents “innovations never yet seen before in the financial markets.” Developed for many years by a team of experts drawn from quantitative analysis, big data, Artificial Intelligence (AI), derivatives pricing, and risk analysis, this app is an industry first for the derivatives markets.
I take this opportunity to analyze the potential of their native token LVX in view of this launch.
At the time of writing, the LVX token was trading at $0.108 with a daily trading volume of $433,342, down roughly six percent against the USD, ETH, and BTC, according to CoinMarketCap.
The release of their mobile app comes at a time when DeFi continues to grow. By February 2020, the amount of Total Value Locked (TVL) in Ethereum dApps rose to $1 billion. Eight months later, over $9.5 billion in ETH is under management by leading open finance protocols. Most are locked by liquidity providers in spot trading dApps like Uniswap as per statistics from Etherscan.
While the DeFi scene continues to evolve, improving in sophistication and liquidity, few have been successful in unlocking the massive market of derivatives trading. The global derivatives market is estimated to be over $542 trillion. This is the main reason we think LVX shows great potential for robust appreciation in due time.
The divergence away from spot trading is a diversification opportunity for traders. According to founder Jonathan Loi, Level01 DeFi app encompasses everything a derivatives trading app should have. It leverages Distributed Ledger Technology (DLT) and AI for risk assessment, instant settlement, and order safety. With ground-breaking proprietary features like FairSense AI and Tradeline, Level01 is laying claim to be the “Ultimate Fair DeFi platform” for derivatives trading.
The co-founder, Adam Ooi, added that Level01 is “correcting the current shortfalls and inequalities of the financial markets” by using blockchain technology. As such, the launch of its derivatives trading mobile app was an “important milestone” to reach this goal.
Level01 is merging big data, blockchain, and AI to tap the $512 trillion derivatives market enabling users to efficiently trade different markets like Forex, Crypto and Commodity, covering assets with trading volume much bigger than the nascent cryptocurrencies market.
For risk management, Level01 FairSense AI automates the calculation of a contract’s risk and reward using real time data from Bloomberg and Thomson Reuters (Refinitiv). Specifically, the AI provides constant pricing analytics to help traders make decisions based on real-time predictions. This proprietary tool is a first in the global derivatives market and DeFi.
Additionally, contract settlement will be on-chain through the use of Ethereum smart contracts meaning traders will always be in control of their funds.
From the LVX/USDT price chart, the path of least resistance is, at the moment, southwards. Aforementioned, the token is down roughly six percent against the USD, ETH, and BTC as per DigiFinex data.
LVX/USDT 1-Hour chart on Oct 10, 2020
However, there are hints of supports as the candlestick arrangement suggests in the 1-hour chart. While the banding of bear bars along the lower BB points to strong sell momentum, the divergence away from the lower BB points to strength. Notably, the correction of under-valuation of the LVX token on Oct 10 may result in higher highs in the coming days as trading volumes rise. Of all the DeFi tokens in the current bearish market, LVX prices have been stable for the last 30 days, showing only minute drops when others are plunging by as much as 25-50%.
In the immediate term, the 20-period moving average in both the daily and 1-hour chart is a line of resistance. A close above $0.118 and the middle BB in the 1-hour chart could provide impetus, supporting bulls aiming for $0.14 or better in coming days.
Possible triggers include the launch of the Level01 mobile app in Google Play Store and the quality of its partners. Their decision to source data from Thomson Reuters and Bloomberg, points to determination of launching the first DeFi product enabling DeFi trading of the multi-trillion derivatives market based on trusted data. They also have a verified team that gives them credibility over other DeFi protocols whose founders are anonymous.
Also, its recent partnership with AGDelta—a digital wealth platform provider, may help support LVX prices, build credibility, increase investors’ interest, and deepen liquidity in the long-term.