[2019-01-20]What Threats are Cryptocurrency Exchanges Currently Struggling With?

[Vladdirescu87]

The crypto market has been pretty bearish over all of 2018. Many investors lost faith in crypto and gave up trading. Digital currency exchanges have had a lot of troubles over this period too. Apart from low trading volumes and insufficient user activity, what are the other threats that crypto exchanges have to deal with?

Crypto exchanges, which were booming during the bull market, have had to face an unpleasant reality and survive in the conditions of paltry market caps. As for the future, the situation may become even more challenging, as competition for a customer will only increase.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/what-threats-cryptocurrency-exchanges-struggling-with/

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[hugeblack]

what are the other threats that crypto exchanges have to deal with?

Trying to rely on more currencies "Shitcoins" as a means to increase the market cap will end dangerously to the cryptocurrency exchanges.
There are many cryptos that are produced on a daily basis and are included in the market without a "cover with real money" or technological completion as an alternative to the physical cover.
As well as the adoption of platforms on the stablecoins as a means of trading without any cover.

[btyco]

The main threat is simply other exchanges. There are so many propping up every quarter trying to be the new binance, some offering little to no fees and incentives as well.

[BitHodler]

As well as the adoption of platforms on the stablecoins as a means of trading without any cover.

It's all about supply and demand. I think it's safe to say that stablecoins provide more advantages to crypto than disadvantages, and that they have proven time on time again.

People keep trashing USDT, yet it's still holding extremely strong, and it's pretty much the only token in the crypto world that actually does what it is supposed to do, which can't be said about anything else here.

If there were no stablecoins, there would be way less capital in the market, which would translate into much lower than current prices. Everyone here benefits from stablecoins, directly or indirectly.

[Kemarit]

The main threat is simply other exchanges. There are so many propping up every quarter trying to be the new binance, some offering little to no fees and incentives as well.

I wouldn't consider it a threat as long as new exchanges can be trusted in the long run. The problem is that those popping up right now doesn't have anything to offer though, they just listed some shitcoins for pump-and-dump scheme or might be possible that they are in unison with the scammy projects as well.

There's this also the problem with fake volumes, I'm not saying its a universal accepted practice but there are reports that says a lot of exchanges are doing this, so I guess we also need to take that in consideration as well. But yeah, no need to promote it as the next Binance or something. They just need to provide better services for the crypto space and I'm sure someone will noticed the eventually.

[1Referee]

The main threat is simply other exchanges. There are so many propping up every quarter trying to be the new binance, some offering little to no fees and incentives as well.

That's not a threat, but something I very much welcome. I would love to see exchanges as Binance and Coinbase shrink down significantly.

It's going to be an interesting time with how legacy banks will soon start to offer the exact same services as Coinbase, because the amount of money that can be made in fees is too interesting for them to discard. It will also increase the legitimacy of the trading desks themselves, and hopefully result in more liquidity with how people right now don't trust exchanges.

Say about banks what you will, but they are 100x more trustworthy than a silly crypto exchange, and they know how to handle insanely large amounts of money, which can't be said about crypto exchanges that are operated by a bunch of amateurs.