Growing Luno’s digital asset universe

First, there was Bitcoin. Then came Litecoin, Ripple, Ethereum, and many more. Today, there are more than 10,000 cryptocurrencies in existence.
But do we really need so many?
To answer that, you first need to understand what cryptocurrencies are. They aren’t just digital coins for buying things. They are used to reward participants in decentralised ecosystems for carrying out activities that keep the system running smoothly and securely. These decentralised ecosystems enable and facilitate all different types of everyday industry, from financial services to gaming.
Types of Crypto Projects
The four main types of decentralised projects that use cryptocurrencies are:
- Layer 1s: The foundations of cryptocurrency. Think of them as the operating system, like iOS or Android. Examples are Bitcoin, Ethereum, and Solana.
- DAOs (Decentralised Autonomous Organisations): Independent projects built on top of Layer 1s. If Layer 1s are the operating system, DAOs are your mobile apps. Uniswap and Link are examples of DAOs.
- Layer 2s: They help Layer 1s run more smoothly and efficiently. The Lightning Network, for example, is a Layer 2 for Bitcoin that enables faster payments. They are blockchain networks themselves (e.g., the Lightning Network for Bitcoin).
- Digital assets: Crypto technology has made it possible to own digital items in a way that was previously impossible. Because you can own these items, it’s possible to assign value to them, such as digital art.
Why Luno Doesn’t List Every Cryptocurrency
Not all cryptocurrencies are created equal. This is still a new world and as with anything new, there are growing pains. There have been many success stories, but many will also fail.
At Luno, we only list cryptocurrencies that meet our rigorous standards for safety and legitimacy. This is also common in traditional stock exchanges and investment platforms, who only list companies of a certain size or which pass certain criteria.
We consider factors like:
- Legality: Does the cryptocurrency comply with regulations in our markets?
- Alignment with Blockchain Technology: Does it embody decentralisation, transparency, and immutability?
- Active Usage: Do people use it and are they willing to pay for its product?
- Security: Has it stood the test of time from a security perspective?
This policy has meant that – for a variety of reasons – we didn’t list coins like LUNA or FTT, which may at one time have been in high demand. Ultimately in these cases, our caution proved correct and we were able to protect our customers from taking unnecessary risks.
This isn’t to say we will always be right, though. All the cryptocurrencies we add to our platform will meet our standards for safety and sit within our framework for listing cryptocurrencies on our platform. But being listed on Luno is never an endorsement of the future potential of an investment and it doesn’t mean that assets listed on our platform are without risk. We will provide clear and unbiased content to help you in your decision making, but you should always do your own research and exercise good judgment before investing.
Conclusion
Cryptocurrencies are more than just funny coins. They are the building blocks of a new decentralized digital economy. However, it is still early and many will not make the grade and could even hinder genuine attempts to build a sustainable ecosystem.
Luno is committed to making crypto available to everyone, safely and responsibly. We carefully assess the cryptocurrencies we list, ensuring they meet our high standards for safety and legitimacy.
Investing in cryptocurrency may result in the loss of capital as the value can fluctuate.
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor