Experts: Many Small Cryptocurrency Exchanges To Go Out Of Business Soon

[qazgroup]

I totally agree with this article, security is a big threat to exchanges and i think only high quality, secure and professional exchanges will be able to survive, secondly due to a big number of exchanges popping up volume is droping as it is divided among so many, so competition is getting fierce.

[eagleman]

Youbit exchange? or that's yobit that is base on Russia?

I hope that in the future, Decentralized Exchanges will become more popular, and that we will be able to trade all our coins there.

Waiting for that moment but all of these small traders doesn't even want to use decentralized exchanges as they are all scared of it.

[starblocks]

There are plenty of assets with a low marketcap that smaller exchanges benefit from listing and some predominantly list those only and are profitable

A lot of the volume for the major assets is getting monopolized by big exchanges but smaller ones will always have a niche

[Lostan]

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/

It is the same as in any kind of businesses. Small organizations quit while big companies remain.
I think that large exchanges won't let Bitcoin decrease in price significantly.

[Klovezio]

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/

great. Exchange shall pay attention on security more, instead of copying the strategy of Binance - creating own coin to have more money. The exchange who doesn’t care about the users security, shall be quit.

[slaman29]

Well, to be honest, these small exchanges are killing themselves. They usually have very small staff, which is fine when they are small but then as they grow they fail to scale support. Users can put up with slow platforms. What they can't put up with are slow support. The smaller the exchange, the smaller the type of user they tend to attract. And then resources wasted on small tokens and shitcoins, which makes them very little anyway.

I think very small exchanges that do well keep customers happy and survive on loyal base. Take care of users and they keep coming back.

[muenze]

The problem with big exchanges is if they get hacked, its got a HUGE influence on the whole crypto market. So I think many smaller exchanges are better.

I am not sure if some smaller exchanges will disappear because they can run with barely any cost and make a lot of money from the fees and other ways.

[warwar]

The problem with big exchanges is if they get hacked, its got a HUGE influence on the whole crypto market. So I think many smaller exchanges are better.

I am not sure if some smaller exchanges will disappear because they can run with barely any cost and make a lot of money from the fees and other ways.

You are opposite thinker, big exchanges are good because they are morelikely one of the top exchanges in the crypto market because of its safetyness and also its security, if they are easy to hack then i think they are not in the best exchanges in the crypto world also those smaller exchanges morelikely they would run easily and also get hack because they are just into money and not on security but not all of the smaller exchange that i mean

[Johnzky]

That would be the reality because market cant support what the small exchanges needed,customers are afraid of putting their coins to small exchanges for the reason like this afraid of shutdown,and not jus exchanges but the shit coins will be wipe out now.and even some good coins will die with them

[bangkit tri]

The problem with big exchanges is if they get hacked, its got a HUGE influence on the whole crypto market. So I think many smaller exchanges are better.

I am not sure if some smaller exchanges will disappear because they can run with barely any cost and make a lot of money from the fees and other ways.

You are opposite thinker, big exchanges are good because they are morelikely one of the top exchanges in the crypto market because of its safetyness and also its security, if they are easy to hack then i think they are not in the best exchanges in the crypto world also those smaller exchanges morelikely they would run easily and also get hack because they are just into money and not on security but not all of the smaller exchange that i mean

i think the big exchange has layered security, which makes us more comfortable. although sometimes there are also impenetrable, but as good as my small exchange remains more comfortable using the big exchange

[imToken]

I tried to use some small exchanges. I have to say that when the number of users on a single exchange is very small, the services they provide are of high quality. They can quickly reply and answer all your questions, and those big ones The exchange will not help you solve any problems for a few days, but I will not put my coins more on the small exchange too much, because I worry about their safety.

[Leah38]

If there's not so much traders using their platform its really expected that such exchange will shut down. I prefer using exchange with big volume and wait for coin pumps. Traders go to top 10 exchanges or commonly used exchanges of course. Maybe we don't need that many exchange to trade cryptocurrency.