Bancor Network Exchange Review

Decentralized Exchange - cannot be rated at this time

Bancor Network is the world's first decentralized liquidity network. In other words, a company that enables automatic conversion of any particular token into other. This has been possible by the creation of a smart token named Bancor Network Token (BTN). Based on its website, this is a digital currency with an embedded converter that allows it to be automatically exchanged to any token in its network directly from the client’s wallet.

The company was launched in 2016 and has been operating from Zug, Switzerland. Based on one review, the total supply of BNT has been determined to be 73,605,657 BNT. This balance has been accounted for by smart contracts which are responsible for the liquidity of this smart token. In regards to the platform, Bancor can be accessed via mobile devices as well as desktops through its website. Its main advantage is the time it takes to perform a currency exchange. If an investor is willing to exchange a token, the platform will automatically provide a price without any need to go through exchanges, order books, buyers or sellers. This is done by using a formula that generates a price based on the market price and the liquidity available. Nevertheless, a disadvantage of the platform is that it doesn’t provide any support for fiat currencies and it requires investors to be previously familiar with the Ethereum universe in order to easily operate in this exchange.

On July 9th, 2018, Bancor has suffered a cyber attack with total damage adding up to $23.5 million in various currencies. The claim is this security breach was done over a wallet that was used to upgrade smart contracts. As a consequence, the company decided to freeze BNT to reduce the damage. This action has been highly criticized by Litecoin creator Charlie Lee who believes that the company is not fully decentralized as it has the ability not only to lose customers funds but also freeze clients tokens.