This week, the UK’s oldest exchange, Coinfloor, has slashed the number of its employees after recording a decline in its revenues as a consequence of the drop in daily trading volume of major cryptocurrencies and the emergence of many cryptocurrency exchanges in the local market.
I would say the big exchanges know what it takes to be able to retain their user which is something that is extremely needed in this space and what has made competitions between exchanges to be very strong. No new investor actually want to be using a small exchange and unless the exchange have something pretty much huge than what is already on ground, I would rather go for a more reputable one than a new exchange. It takes a lot to be running an exchange these days, and you will also need to be able to keep your game up high otherwise it would be hard to survive.
Small exchanges are not bad, they have the ability to absorb some investors, at least new investors, and early investors will not participate in these new exchanges.
Yeah, small exchanges may be good and equally, the more the exchanges we get to have the better for the competition within the space when it comes to exchange. Now, it is that competition that keeps separating the big ones from the small ones and apparently, there is no one that would not want something unique in an exchange and as the space is growing every single day, so are exchanges also trying as much as possible to step up on their feet to increase their revenue. With this in play, any small exchange that cannot keep up to the game will be left out which is one of the reasons why I said it is good for the space to be able to keep seeing multiple quality exchanges as time goes on.
