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Why the value of LRC crypto is rising after GameStop NFT rumours and how it works

Why the value of LRC crypto is rising after GameStop NFT rumours and how it works
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A lesser-known cryptocurrency called Loopring boomed in November, rising more than 66 percent in 24 hours.

The Ethereum-based token is now valued at around $3.70 (£2.74), down from less than $1 (£0.74) a week ago.

But what exactly is Loopring, and why has it become so popular? Here is everything you want to know.

What is Loopring?

Loopring says it “builds protocols, infrastructure, and user-facing products for the future of finance.”

It prides itself on its Ethereum layer two (L2) platform, which it says operates at very high speeds – stabilizing up to 2025 transactions per second – while remaining secure.

It does this using a structure called zkRollup, which validates off-chain crypto transactions.

Loopring says its goal is to “design and engineer a best-in-class zkRollup exchange and payment protocol on Ethereum, and power the products that make it available to users around the world.”

The Loopring Token (LRC) is the original token of the Loopring protocol, and can be used to pay fees on Loopring L2.

Loopring has its own wallet, Loopring Wallet, which calls itself “the first smart wallet app with L2 scale, providing a secure, intuitive and powerful Ethereum experience in your pocket.”

Starting a wallet costs money – currently over $500. However, these wallets come with a number of security features, such as the ability to lock them and retrieve them if they are lost or stolen.

Why is its price going up?

Loopring started gaining momentum in late October, before picking up in November, growing more than 400 percent.

Much of the interest is due to rumors that GameStop — the same GameStop game that took the stock market back in January — will likely be looking to use Loopring technology for an upcoming NFT (non-fungible token) market.

NFTs have become very popular in recent months. They are unique digital assets – for example a picture file or a ticket – that exist as part of the Ethereum blockchain, and that can be traded like art in the non-digital world.

Some see NFTs as the future of the internet, while others believe they are nothing more than a money laundering scam.

Either way, the potential union between GameStop and the world of NFT is enough to get a lot of people – especially the casual investors in the Reddit communities – very excited.

Should I invest?

People invest at their own risk and cryptocurrencies are not regulated by the British financial authorities.

All cryptocurrency investments are risky, and you should be prepared to lose whatever you invest. It is important to do a lot of your research before putting any money into it.

The Financial Conduct Authority (FCA) warned in January: “Investing in crypto-assets, or investments and related lending, generally involves an extremely high risk of investor money.

“If consumers invest in these types of products, they should be prepared to lose all of their money.”

Susanna Streeter, Senior Investment and Markets Analyst, Hargreaves Lansdown previously outlined the risks he faces I.

“In addition to being highly volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty, but also means that investors have little or no protection against fraud,” she said.

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