What I would like to see from a leading exchange like yours is to implement some proof of dev.
- How hard would it be to get the leading dev of interesting coins to chat with one of you in a video call explaining what his coin is, what he intends to do and what not.
I am sure some of them will still be scam, as a competent person can fool you into accepting his coin but after he fooled the community once, this guy will be barred from your exchange forever with his photo published and what not.,. For their next scam they will need an other competent dev to give the speech and answer your technical guy. A method like this is a bit intrusive but for the sake of crypto, I believe this is almost mandatory at this point.
Bittrex is hurting more than helping the community at this point with all the scams. This is unbelievable how much money has been stolen past few weeks with all this stuff. What might happen at this point is people are going to avoid your site and go back to mintpal and invest in established new coins.
I personally was trading quite a bit 3 weeks ago and barely bought any coins on your exchange since then, and intend to do so until this situation is resolved.
Investing in the dev > investing in a coin right now.
@Bittrex-Bill
Proof of Dev? Seriously, you mean all I need is a cool online name, a few BTC, and I can get my coin listed? No wonder the industry has a trust problem....
Think SRO (Self Regulatory Organization), like a stock exchange. People have faith in the stocks because they are on the exchanges. Exchanges have customers because they do their homework before listing a stock. They are not perfect, but the fact they look into companies first deters the unscrupulous.
As an exchange, It is all about trading volume, and that means trading the hottest coins. But paid listings are worrisome.
It begs the question, Who are your most important customers? Those with coins to list? Or, the people that trust you with their coins (Read: Money)? (No good or bad here, it is just a business model thing. But being a customer I prefer the latter)
Why? Because more and more alts have Market Caps approaching the 10's of millions range or higher. This is Real Money. The Mt.Gox collapse was the wake up call. Hey, Real $$! Then Poloniex suffered a loss at their own fault. Now say what you want, but Poloniex recovered and made everyone whole. Like the exchange or not, they have earned a measure of respect. As a result, there is a growing faith that each exchange is not a fraud, but soon they will demand a measure of protection from / by the exchange from coin fraud.
Now with the recent rash of new scam coins should drive this next evolutionary phase. Due Diligence. Some sort of due diligence is needed and or will soon be demanded by traders and investors. Bryce Weiner (think what you want) he has his coins. Will they work? IDK, but when I buy/invest in one, I have some knowledge of what I am getting into and reason to believe it isn't a scam. That doesn't mean it will work, but it seems like the guy
is trying.
A clearly defined 'industry standard' set of criteria needs to be (read: will eventually be) developed. Something much more significant than measuring the shouting on social media. It is like a random pat down for people waiting at the gate of a sporting event. Will it keep bad people out, NO. But the simple tactic is enough to make casual evildoer step out of line.
The future of the industry is straight forward. Exchanges that continue listing anything for anyone will lose respect, volume, and desirability.
Exchanges that are serious have no choice than to start regulating themselves. If they don't, the alt industry will suffer significantly. Bottom line, Integrity and Intent count. (It is also expensive!)
And that sets up the next stage.
Ultimately fragmented industries consolidate. It simple economics; things like economies of scale and shared resources are powerful at the bottom line.
So, anyone hear of any merger talk lately? Uncomfortable with that idea? It doesn't matter. The mergers are coming. And as fast as this industry evolves... I think the first one happens soon, like in the next 3 - 9 months.
You can make it happen,
You can watch it happen, or
You can sit there and wonder WTF Just happened.... (Capt. Phil Harris)
My complete guess (based on Geography) >> Bittrex & Cryptsy.
Trex has a bit more volume which should go well with Cryptsy's newly (Licensed) Dollar markets. Every US Dollar Cryptsy adds to their accounts increases their desirability.
Then the US Alt Trading Powerhouse will be ready to go international (read: MintPal) but that bring a lot of expensive legal requirements.
I see Polo gathering up the best of the rest while the high-school project sites fold due to lack of interest. Being in 3rd place (US) maybe Polo should try and get the ball rolling first.
I wholeheartedly agree with everything you said The issue is within this game people don't want there to be regulations and they don't want to be accountable its the guise of(anonymity and the lack of consequences that has been the way things have been operated thus far in all things crypto); that being said they're trying to hide behind new pseudonyms and scam coins. If these exchanges had any care for due diligence they may be able to catch some of the scams but at the same time there is no real way to tell whether a coin is going to be a scam or not because i could make the most legit looking coin and not have a crazy high market cap for it and then just poof vanish. There would need to be some kind of regulations put in place that would hold people accountable and those types of regulations are what will push people away from crypto as it would take the level of anonymity out of it. Now with what you said when those things come about crypto will be more stable and trustworthy but much less anonymous hopefully theres not too much of a mess before the dust settles.
