Centralized exchanges have become the banks of the cryptocurrency world - page 4.

The Sceptical Chymist

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If you assume this statement is true:

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For projects who did not participate in the IEO/ICO stages and have no funding, it is nearly impossible to get listed on an exchange.

Then these following quotes don't make a hell of a lot of sense if you consider that the article specifically states that there are over 1500 exchanges in existence, all desperate for projects to get their coins listed on them:

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The CEO of DigiByte (DGB) claims he was asked for $300,000, plus 3% of his 58th ranked altcoin’s entire coin supply, to get listed on Binance.

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The demands made of the 1,371st-ranked uPlexa were equally outrageous. According to Pierce: We’ve had offers for 50% of the premine to get listed on an exchange.

It seems to me that the advantage should be going to the coin devs as far as getting listed on an exchange. If one of them is asking for an outrageous fee, it should be easy enough to say to them, "Screw you, I'll just list it on some other exchange".

On the other hand, it does explain why lesser-quality coins are only listed on obscure exchanges. Try buying Gridcoin if you want to stake it. SouthXchange is basically your only option. Reddcoin? It's listed on only about four exchanges. So I'm definitely not saying I disagree with this article, because it makes good points. I just wish there were more details given about which exchanges were trying to extort coin devs. Naming names can be problematic for journalists (and devs) but still.

deisik

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Quote from: alyssa85 on January 26, 2020, 06:14:33 AM

The only solution it seems to me, is to build a community

It has always been the only lasting solution

When Satoshi created Bitcoin, there was nothing, no cryptocurrency exchange to list it on, no online casino to add it to the list of supported coins, even no major news outlet to write about it. But it still succeeded in the end. Those who want to start their own coin should be more focused on how useful it will be to people and what advantages it has to offer over the competition. If it gains success, exchanges will line up to list it on their own

davis196

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Newly launched altcoin projects are desperate for one thing-promotion.
Listing them on a well known crypto exchange platform will bring them lots of new traders.
Paying for advertising/promotion is completely normal and,if you think about it,it's a form of quality control.
Do you want every newly launched shitcoin to get free advertising and exposure on all big crypto exchange platforms?That would be a disaster for the traders and a blessing for the shtcoin developers,who want fast pump&dump profits.

hello_good_sir

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Absolutely, and the degree of centrality that these exchanges introduce to the cryptospace is absolutely mind boggling in terms of the effects that they will potentially have.

It goes without saying that these centralized exchanges are prone to attacks the way that decentralized cryptos are simply designed to circumvent. The risk of the middleman within a transaction essentially gets reintroduced as soon as people start using third parties.

I'm not say that it's possible to eliminate all of them, but the pushes towards DEXs is definitely warranted and needed.

wozzek23

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Yes that’s the truth but it wouldn’t be the same when the government starts to create their own cryptocurrencies, all these centralized exchanges might not be the ones that would be in control of government issued cryptocurrency, maybe they will, but not really like you think. At that time banks will evolve to something bigger and exchange to their services I guess, that way people will be able to buy the assets from their online banking app and also sell it when they want to and convert to original currency.

teosanru

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This actually is true and quite worrying too. No matter what we say top exchanges today are actually controlling major flow of Cryptocurrencies and these are based solely on trust and fidelity. There are absolutely no norms made for them. But we as an investor and users are actually out of options. DEX are extremely time consuming and boring. Moreover most of them these days are bot driven which makes them even less lucrative. Moreover coming yo the part that many alts are merely trading commodities I think this pretty much holds true for a few years only. There were many vague companies during the dot com bubble but only a few survived which actually were based for utilities and same would happen in Cryptocurrencies too only those with some utility would survive rest would be dumping sooner or later.

royalfestus

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Centralized exchanges are very efficient and basically the most active unit of cryptocurrency. Developments are now going into crypto to fiat exchange, wherebye giving access to easy cash out, either through bank ATM or mobile app that links to banks. This also give more physical interaction for all holders and reduce the stigma attached to virtual coin, also improve the process of crypto purchase, Although cryptocurrency has the reduced address as virtual coin.

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Quote from: hugeblack on January 27, 2020, 01:49:25 PM

Although the central platforms are worse than banks, the cryptocurrencies (most of shitcoins) that want to be listed are worse than paper money, so I agree with any restrictions that are added even if they are greedy from the platform.

Many cryptos have no future and they are pumping/dumping models. thus may lead you to lose your money in the long run.
Therefore, it is reasonable to place strict restrictions on them, as it is the duty of governments to place restrictions on these platforms.

A lot of crypto creators find a way to earn quick money without divulging their identities. So you are right that somehow we need strict regulations to lessen if not eradicate these scammers. If they will just use blockchain projects in the rightful manner and not be abusive about it, we will not need these centralized exchanges.

hugeblack

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Although the central platforms are worse than banks, the cryptocurrencies (most of shitcoins) that want to be listed are worse than paper money, so I agree with any restrictions that are added even if they are greedy from the platform.

Many cryptos have no future and they are pumping/dumping models. thus may lead you to lose your money in the long run.
Therefore, it is reasonable to place strict restrictions on them, as it is the duty of governments to place restrictions on these platforms.

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Quote from: bangjoe on January 27, 2020, 08:23:24 AM

the decision can not be one-sided only from the community, but from how each DEX developer to improve the quality of the platform, not only by providing a place and only packaged in a simple way without things that make users comfortable and competitive, the article only discusses the understanding of listings coins on a particular exchange without offering something as an active solution.

Yes indeed, DEX should be partially blamed as well for indirectly pushing users towards centralized exchanges as DEX lacks the basic quality required for a smooth transactions and they need to learn from centralized exchanges and try implementing the features and interface available at centralized exchange as that's the only way to stop migration of users to CEX and we cannot blame CEX for their rules as it's upto us whether we want to indulge or not.

bangjoe

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the decision can not be one-sided only from the community, but from how each DEX developer to improve the quality of the platform, not only by providing a place and only packaged in a simple way without things that make users comfortable and competitive, the article only discusses the understanding of listings coins on a particular exchange without offering something as an active solution.

target

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Its making the industry worse. Asking 50% of the premined tokens just to get listed is really not acceptable but to some desperate teams wanting to make their investors happy would probably just give it to the exchange. Its no wonder now that more exchanges are created since 2017 up to today since its listing-to-coins business.

Now that centralize exchanges are pushing all to the edge, its really a good time to make Dex work for us all. If there are just more users concerned to privacy, we could have been giving more volume to trading in dex.

ajiz138

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regarding the centralization of the bank which is the center of crypto exchange, I don't think that will be possible. Obviously the banking system, although it has adopted a blockchain system, is definitely different from the actual crypto system. If that happens, there will be a massive capitalization and monopoly by one party, and will even trigger a dispute.
Is cryypto created by banking people? the answer is no, in essence crypto is made for fun in technology. That is all

Harriti

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Quote from: alyssa85 on January 26, 2020, 06:14:33 AM

https://www.ccn.com/the-dark-side-of-becoming-the-next-bitcoin/

There is a lot more in that article about the perils of launching a coin.

The only solution it seems to me, is to build a community and then get that community to use a decentralised exchange. The only reason Dex's arn't being used is because there isn't volume there - but that can be solved if an entire community decides to use a particular Dex.

Yes, this is also a good idea. I also think we should not be controlled by anyone. DEX is really great when we trade from our own wallets to exchange with others, developers only provide the platform for us and in addition they do not keep any assets of traders. It's a very good thing and I feel very comfortable and safe when trading at DEXs like IDEX, Binance DEX, Forkdelta. But in order for this to come true, new DEXs in the future should reduce transaction fees, providing even more functions.

liuqi

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alyssa85

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Quote from: mu_enrico on January 27, 2020, 07:16:45 AM

It's difficult for a small community coin to grow if there is no "purge" event.

Yes I agree. What needs to happen is that a lot of these shitcoins need to die a death, freeing up the space for the good coins.

But - and this is the connundrum - as long as a coin is listed, it's alive and will be kept alive by various pump-and-dump artists. So really we need some of the exchanges to die as well, taking some coins with them.

mu_enrico

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C'mon man, some of them are worse than banks. There is no pump and dump, flash crash, stupid listing fees, etc., in traditional banks. We could argue that the regulated one is somewhat safer. However, KYC makes it uncomfortable since you have to give up a passport, selfie, etc., well, it is then become similar to banks as well with a lesser reputation for data breach.

About listing fees, as others said, it is because of too many shitcoins competing to get listed for the pump. It's difficult for a small community coin to grow if there is no "purge" event.

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Quote from: squatz1 on January 26, 2020, 11:37:02 AM

Centralized Exchanges are the banks of the crypto world, if you let them become that. In my mind, if you build a great coin with great features (think of something like XMR), then you're going to get the exchanges to accept you without having to dump tons of money on exchange fees. This is the thought process of 'if you build it, they'll come'

But that is not what is happening, sadly. You can have the best coin in the world, but they won't list it unless a) you pay them money or b) you have proved there is so much volume on a Dex, that they list it anyway to get a cut of the fees on the trading volume.

In order for b) to happen, you need a huge community. It's hard to build a community in the cryotocurrency world because there is no central place any longer where you can gain followers. It used to be this forum, but it's now fragmented into several subreddits, twitter, facebook and elsewhere.

Darooghe

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It's true. the centralized exchanges have been manipulating markets for too long. storing large amounts of crypto on a wallet that you don't have keys to is the most foolish thing an investor could do. Now all these exchanges are encouraging staking on their platforms in return for a small percentage in annual interest and who know what they're doing with all those staked coins. What is the difference between a savings account paying you interest and these exchanges paying you interest. It's literally the exact same thing.

merchantofzeny

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They basically get all the benefits of being a bank without the additional responsibilities. I don't know how a decentralized exchange would work but I think it's the way to go to avoid the perils of using centralized exchanges, namely government surveillance and possibility of data breaches.

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