The indicator is incorrect. A Blue LED color indicates a 32-bit track being played. As stated above, the LED color does not display correctly when playing tracks via OpenApp.
It seems the LED indicator creates more problems than it solves. If the bitrate that is displayed above the album artwork is accurate then this should be the information Kann users ought to trust.
Personally I don't need a visual indicator to reinforce my conviction that what I'm listening to sounds good or not and especially when I don't stare at my device all the time when I'm listening to music