zycrypto (OP)
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ZyCrypto:Cryptocurrency Daily News /Coins Analysis
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June 22, 2018, 11:38:14 AM |
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Experts and analyst in the crypto industry have predicted a widespread shutdown of small exchange platforms because of their inability to attract investors. A report released by 8BTC.com, a blockchain news platform operating in China, indicated that the first 14 major crypto exchanges take up about 73% of the total value of transactions made in the market, with the rest of the 170 small exchanges accounting for only 27%. This presents a huge hurdle for the small, ambitious crypto exchanges to maintain a profitable market share and scale up their operations. Security Fears
Besides this stiff competition, the crypto world as a whole faces issues related to fraud and security. It’s only a week ago that Cattleex, a crypto trading platform, went bankrupt after failing to meet market demands by its miners. Bithumb Exchange, another South Korean platform, also lost money in a hack that culminated in its temporary suspension of all deposit and withdrawal services on its platform. Youbit Exchange, also based in South Korea, declared the failure of its project after it was hacked. Despite the central bank of China banning initial coin offerings (ICOs) and crypto exchanges, many Chinese startups are registering their exchanges outside China and targeting Chinese investors. The many cases of fraud in the Chinese crypto world haven’t helped the situation. Read More: https://zycrypto.com/experts-many-small-cryptocurrency-exchanges-to-go-out-of-business-soon/
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coco23
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June 22, 2018, 11:44:13 AM |
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Interesting article, thanks for posting.
I also think that some smaller exchanges might dissappear soon. One should also keep in mind that with last year's hype many man new exchanges came into live. Now with the bear market only the best (biggest, most profitable, securest) will survive and some will dissappear. It's just the normal "business cycle of life"
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bitgogo123
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June 22, 2018, 02:43:09 PM Last edit: June 22, 2018, 04:06:06 PM by bitgogo123 |
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Yes, I very much agree that this year is a exchange war. Once their funds are insufficient to sustain dividends on exchange tokens,I think that many exchanges will soon be closed down.
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Lagduf
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June 22, 2018, 03:19:24 PM |
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Experts and analyst in the crypto industry have predicted a widespread shutdown of small exchange platforms because of their inability to attract investors. A report released by 8BTC.com, a blockchain news platform operating in China, indicated that the first 14 major crypto exchanges take up about 73% of the total value of transactions made in the market, with the rest of the 170 small exchanges accounting for only 27%. This presents a huge hurdle for the small, ambitious crypto exchanges to maintain a profitable market share and scale up their operations. Security Fears
Besides this stiff competition, the crypto world as a whole faces issues related to fraud and security. It’s only a week ago that Cattleex, a crypto trading platform, went bankrupt after failing to meet market demands by its miners. Bithumb Exchange, another South Korean platform, also lost money in a hack that culminated in its temporary suspension of all deposit and withdrawal services on its platform. Youbit Exchange, also based in South Korea, declared the failure of its project after it was hacked. Despite the central bank of China banning initial coin offerings (ICOs) and crypto exchanges, many Chinese startups are registering their exchanges outside China and targeting Chinese investors. The many cases of fraud in the Chinese crypto world haven’t helped the situation. Read More: https://zycrypto.com/experts-many-small-cryptocurrency-exchanges-to-go-out-of-business-soon/This has been mentioned in so many times if the decentralized exchange site is the only solution for this case. Did you ever see the decentralized exchange site are getting hacked on its hot wallet and i never see that. Remember forkdelta hacked case just replacing the real DNS to the fake DNS that redirect the new users into the scam site.
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buytheeffinD
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June 22, 2018, 05:25:37 PM |
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Interesting article, thanks for posting.
I also think that some smaller exchanges might dissappear soon. One should also keep in mind that with last year's hype many man new exchanges came into live. Now with the bear market only the best (biggest, most profitable, securest) will survive and some will dissappear. It's just the normal "business cycle of life"
Exactly it makes perfect sense if you analyze it objectively. Unfortunately for those exchanges getting started last year because if the bull run had continued they would be prominent in this space. But because things took a turn for the worst and most cryptos were overbought this was inevitable.
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ecnalubma
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June 22, 2018, 05:55:03 PM |
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Yes majority of them may fail and close due to unattractiveness and stiff competition, but some of these small exchanges might outclass goliaths just like Binance and Kucoin. These two are the new favourite I guess since they are most talked by traders. But competition will not end and there are a lot to improve and implement in the space so the battle will keep going.
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Indamuck
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June 22, 2018, 05:56:20 PM |
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The top exchanges are still pulling in MASSIVE profits during this downtrend. IT does get extremely annoying having to sign up for 20+ different exchanges because the certain coin or token you have is only listed on a small exchange.
It's been said over and over but I'll repeat it: Your crypto is never safe on an exchange, we are seeing hacks happen constantly now, even the biggest, most secure exchanges are not safe.
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adroitful_one
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June 22, 2018, 07:12:44 PM |
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The top exchanges are still pulling in MASSIVE profits during this downtrend. IT does get extremely annoying having to sign up for 20+ different exchanges because the certain coin or token you have is only listed on a small exchange.
It's been said over and over but I'll repeat it: Your crypto is never safe on an exchange, we are seeing hacks happen constantly now, even the biggest, most secure exchanges are not safe.
The exchanges getting hacked all the time isn't really helping with the price movement either.. It makes people afraid to invest in Crypto. Why invest when your money could disappear at any moment? A lot of people just hear "Stolen Bitcoins" and don't understand the rest of what was really going on.
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omonuyak
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June 22, 2018, 07:14:21 PM |
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I also sense that many of those little exchange are going to disappear in the near by future. By the way we even prefer for a tokens or coins that we have invested in to be listed in big exchange like poloniex and binance one can really said that many investors are not interested to trade they tokens or coins with bitcoin on those small or decentralized exchange. Security Fears
Besides this stiff competition, the crypto world as a whole faces issues related to fraud and security. It’s only a week ago that Cattleex, a crypto trading platform, went bankrupt after failing to meet market demands by its miners. Bithumb Exchange, another South Korean platform, also lost money in a hack that culminated in its temporary suspension of all deposit and withdrawal services on its platform. Youbit Exchange, also based in South Korea, declared the failure of its project after it was hacked. Despite the central bank of China banning initial coin offerings (ICOs) and crypto exchanges, many Chinese startups are registering their exchanges outside China and targeting Chinese investors. The many cases of fraud in the Chinese crypto world haven’t helped the situation. Read More: https://zycrypto.com/experts-many-small-cryptocurrency-exchanges-to-go-out-of-business-soon/ Most of those new exchange are not really secure and some of them are not even ready to spend the money raised during icos to secure it. I think we should be careful when trading on those exchange as it can be hack at any time.
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Bardman
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June 22, 2018, 08:44:00 PM |
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Garbage article, it doesn't explain anything at all, it doesn't even talk about exchanges going out of business almost. Running a crypto exchange has to be quite profitable even if you don't have a lot of volume, at the end of the day you only need a few people to run the support team and most of the expenses are going to be related to servers, that's it. The only reason why small exchanges could go out of business is lack of overall volume in the market like right now but unless it happens for years, I don't really see any problem.
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5ensei
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June 22, 2018, 11:09:18 PM |
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These smaller exchanges will always be needed to listed the newer coins that have a low volume of trades. If the coin is popular with regular trading activity then the house will make a tidy profit, enough to keep going. It just needs at least one good almost exclusive coin to survive
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anggriani
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June 23, 2018, 03:43:16 AM |
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small exchange have to look for another country that has not had a local exchange, but has many crypto users. so they can take local market share to meet the demand of selling and buying or exchange into the fiat currency of the country itself.
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Memenya
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June 23, 2018, 03:47:46 AM |
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Interesting article, thanks for posting.
I also think that some smaller exchanges might dissappear soon. One should also keep in mind that with last year's hype many man new exchanges came into live. Now with the bear market only the best (biggest, most profitable, securest) will survive and some will dissappear. It's just the normal "business cycle of life"
Actually, as investor we need to be fully care to new exchange because of security. This is first reason and second is the new exchange has not enough volume and as trader, low volume of exchange is really not interest since it means the exchange has no popularity. Thats the reason why we should be care.
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BitcoinHodler
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June 23, 2018, 07:06:24 AM |
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interesting but there are certain reasons that can also keep them well alive.
1. they don't cost as much to run as the big exchanges. while the big ones need strong servers and need to spend a lot of money these small exchanges can be run so much easier with a lot less money. 2. the volume may be low but it is not zero and it can cover their costs. 3. these exchanges sometimes have coins others don't and they can manipulate and pump those coins and make a lot of money. 4. finally the most important reason: with the big exchanges scamming their users like Cryptsy running away, Mt Gox scamming, Bittrex scamming,... people will use these exchanges more. for example the most recent one was bittrex which pushed many users to other exchanges. for example cryptopia had a surge of new users. Binance came out of nowhere and got the market by the balls.
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Holding Bitcoin More Every Day
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jeffthebaker
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June 23, 2018, 07:30:13 AM |
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It's certainly a trend that's evident if you're paying attention. One of my favorite small exchanges is tuxexchange, which deals primarily with pepecash and other counterparty assets. Tux has always been super reliable, instant customer services, everything you want out of an exchange... But still fails to attract meaningful volume. 95% of days will be less than 10 BTC in total exchange volume. And Tux is higher quality than most exchanges out there. Compare it to the shady small exchanges that are stealing funds and exit scamming, it only seems logical that these guppies fail to attract attention.
Especially with the growing prevalence of decentralized exchanges as a means to accumulating small and new projects, there is a decreasing incentive to deal with subprime centralized exchanges.
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CryptoTamer
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June 23, 2018, 09:29:02 AM |
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Experts and analyst in the crypto industry have predicted a widespread shutdown of small exchange platforms because of their inability to attract investors. A report released by 8BTC.com, a blockchain news platform operating in China, indicated that the first 14 major crypto exchanges take up about 73% of the total value of transactions made in the market, with the rest of the 170 small exchanges accounting for only 27%. This presents a huge hurdle for the small, ambitious crypto exchanges to maintain a profitable market share and scale up their operations. Security Fears
Besides this stiff competition, the crypto world as a whole faces issues related to fraud and security. It’s only a week ago that Cattleex, a crypto trading platform, went bankrupt after failing to meet market demands by its miners. Bithumb Exchange, another South Korean platform, also lost money in a hack that culminated in its temporary suspension of all deposit and withdrawal services on its platform. Youbit Exchange, also based in South Korea, declared the failure of its project after it was hacked. Despite the central bank of China banning initial coin offerings (ICOs) and crypto exchanges, many Chinese startups are registering their exchanges outside China and targeting Chinese investors. The many cases of fraud in the Chinese crypto world haven’t helped the situation. Read More: https://zycrypto.com/experts-many-small-cryptocurrency-exchanges-to-go-out-of-business-soon/Yes, I also think that the competition in the Exchange business is getting higher, I think the number of exchanges is enough but, there are still many ICO projects that want to build a new exchange. New exchange projects emerge with similar concepts and somehow investors are still FOMO with ICO on Exchange projects Are they not aware that exchange projects have high business competition? I think new exchange has a higher risk of failure than those already in operation
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Ciucas
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June 23, 2018, 10:16:51 AM |
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I hope that in the future, Decentralized Exchanges will become more popular, and that we will be able to trade all our coins there. It's really annoying to have to open accounts for so many exchanges, just because not all of the coins can be found on a single exchange. Also, the risk of a hack is smaller of a decentralized exchange, compared to the normal exchanges.
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Lontonbit
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June 23, 2018, 10:24:57 AM |
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All these hacks are orchestrated from the entities at the top controlling this market. Likely bankers.
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It’s gold for nerds
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kraterion
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June 23, 2018, 10:28:21 AM |
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With more and more decentralized exchages opened, small exchanges will fail almost for sure. Or they will have to find a way to differentiate among other ones, for example there's flyp.me where you can trade directly from your wallets without opening an account
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ananas99
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June 23, 2018, 10:40:03 AM |
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I wonder whether there will be new ones in return for these. It's clear that the exchanges are going down, because constant checks and fraudulent actions simply destroy them from within and do not allow them to grow and develop. Of course, when only two top-end exchanges are left, it is they who will manipulate everyone.
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