Centralized exchanges have become the banks of the cryptocurrency world - page 5.

hatshepsut93

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Quote from: alyssa85 on January 26, 2020, 07:14:33 AM

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.

How much of his stash did Satoshi give to exchanges to get Bitcoin listed? Oh wait, it's zero because exchanges listed it for free. The solution is clear - build and they shall come. The guy from the article complains about oversaturation of exchanges, but there's also oversaturation of shitcoins, hence why exchanges can charge big buck for getting a shitcoin listed there. If a project is indeed honest and all around good, it shouldn't matter if its listed or not, people will find ways of exchanging it and using it.

outatime1

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Centralized exchanges have the upper hand because there aren't any decentralized ones yet. Or at least I don't think they are active yet. I know that there are some in the works, but I think it could be this year before they go live.

btccashacc

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I somehow agree that centralized exchange already became bitcoin bank, because most of the users are now using those centralized exchanges and have been upload their details in order to verificate their account, we can't avoid using echange without verifivation because they will limit some features such a minimum withdrawing or even do a trade.

squatz1

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Flying Hellfish is a Commie

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'

So this means instead of building from the top down (the top being exchanges) you have to built from the bottom up. This is going to take more time, more people, more resources in developing, and so on and so forth but you're going to be rewarded in saving on the exchange fees. A coin like XMR, builds itself in local communites first -- showing that it is a coin that is like cash again, anonymous. That's obviously going to be loved by regular people who value their privacy, people who are protecting their government, people doing shady things (drugs online, etc), online drug marketplaces, etc.

Now that you've built yourself into the community, the exchanges are going to slowly come. From the shitty / scammy ones, to the ones that are legitimate and big and have the volume required. At first you're probably going to have to run your own exchange -- a simple btc to XMR (or whatever your coin is here) conversion that people do manually (requires a good deal of trust)

They are the banks, but you can do a lot to dethrone them.

Ucy

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This is probably so because they are trying to mix the two worlds: centralized and decentralized worlds. You will only end up bringing in the problems associated with centralization (real crypto enthusiasts are trying to solve) into decentralized world. It's hard to be a good person in a centralized setup...hence the need to avoid/reduce it as much as possible.

fiulpro

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Indirectly - yes ofc

But at the same time most of the time these exchanges are the place where the buyer and seller meet each other and strike a deal and I think it's just like a market where you don't have to hunt for what you want and just go and see that everything is there. I think it is completely safe for it to be seen like that since it is rather important one and actually is something that does have a hand in making the market bigger and more popular.

avatar_kiyoshi

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Quote from: Wexnident on January 26, 2020, 08:21:22 AM

Sadly, to build a community around a coin, you'd still need staunch supporters right? And most, if not all, would try and use the money to advertise it so in the end, it falls to the factor of, again, the problem of money.

Besides the lack of promotion and lack of volume, DEX also the trustless system which need require deeper knowledge to control it, this is what the newcomers avoid the platform, plus the UI/UX that are not familiar in the eyes.

Wexnident

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I guess you can say that the saying "Money makes the world go round" still holds true even in the crypto scene. Dex is not much used since one, there isn't really a DEX out there that is as well known as the top CEX's we have like Binance. Two, DEX just doesn't offer what CEX can offer. This makes CEX much more appealing, and over time, the market that was supposed to have been gotten by DEX went to CEX.

Sadly, to build a community around a coin, you'd still need staunch supporters right? And most, if not all, would try and use the money to advertise it so in the end, it falls to the factor of, again, the problem of money.

alyssa85

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

Quote

Your favorite altcoin’s path to becoming the “next Bitcoin” is a lot more treacherous than you think.

The CEO of uPlexa (UPX) told CCN.com about the financial and ethical minefield faced by upstart altcoin projects in the cryptocurrency industry. Kyle Pierce – the project’s co-founder and lead developer – paints a miserable picture of an industry that may already have been taken over by its worst people.

The “king-making” ability of centralized exchanges is no secret. 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.

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. 50% of our premine that’s allocated to exchange listings, marketing, hiring, founding team, core members, security audits, etc. They somehow believe that one hour of their time is worth nearly 6,000+ of our current man hours into this project.

Pierce says the saturation of centralized exchanges is making matters worse. Over 1,500 exchanges now compete for the same territory. As that number increases, the desperation of each rises accordingly.

There’s 1500+ centralized exchanges that offer the exact same service, and they’re starting to lose volume. So they artificially boost the volume and hire VA’s to go around soliciting every team member of every project in hopes to quickly make a quick buck before their watering hole dries up.

These exchanges have become a choke-point for the cryptocurrency industry. The only way to get listed is to play their game. That means new cryptocurrency projects have their development plans dictated to them before they’ve even begun.

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. So, firstly, not only are people predominantly trading on centralized exchanges in a decentralized area, but the exchanges that are making huge sums of money are killing off the potential for real-world technologies to get noticed/adopted.

Another exchange told Pierce they would be happy to list his project, if only they moved away from “the whole privacy thing.”

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.

Topic: Centralized exchanges have become the banks of the cryptocurrency world - page 5. (Read 1148 times)