Topic: Could exchanges leverage on the current market trend to woo new investors? (Read 217 times)

While events can be a great way to attract users, long-term success relies on building a robust ecosystem and fostering trust.  Transparency, fair fees, and reliable service are key pillars, just like you mentioned. Ultimately, users want an exchange they can depend on, bull market or not.

We're talking about cexs here and that to me has almost nothing to do with p2p.

CEXs being more secure and transparent is an improvement of system, not of network. I see network improvements to be what secures p2p more (talking about smart contract and escrow all on blockchain).

Believe me, if you take proper precaution with p2p you are way safer than using any CEX.

Ahh, the current surge seems to be the result of the halving period that is on the way. We have seen this trend all the time in the past halving also. This doesn't prove that adoption is imminent and frankly, I have seen such discussions right before the halving only or whenever Bitcoin is hiking in terms of prices and its market capital.

The adoption would be when we see the Bitcoin use case in different industrial and non-industrial sectors. Imagine seeing large volumes getting driven by big industries within the country and overseas, at least 5 out of 10 stores and vendors accepting Bitcoin for daily transactions, and at least a significant amount of the population accepting the same. Then we can safely say that Bitcoin has been adopted.

Considering the demand and supply formula that was set by Satoshi, the new investors will keep coming anyhow. They know that or at least they will sense with time how Bitcoin prices are going up. I mean just look at it, when it started and how it is going right now! Investors will surely come.

I suppose that's why they've been experiencing exponential growth. Compliance, fairness, and transparency are the key elements needed for flourishing.

You just outlined how exchanges can win new investors and drive cryptocurrency adoption, by being transparent, fairer fees, better and faster services. People in the crypto space needs their services for convenient and reliable means of crypto transactions, and also to reduce the chances of being scammed in two party p2p. If exchanges wants to leverage on the current market trend to woo more investors because of the build up to bull run, what then happens when Bitcoin price starts to dip and bear run starts to set in? What will happen to the investors that they've wooed in good and profitable time? So I think that they should focus on excellent and reliable services at all times to gain investors trust

An exchange cannot attract new users if it does not have a good reputation because people will be much more selective in choosing an exchange for their trading activities. Moreover, in recent years we have seen how exchanges have had problems resulting in closures and the tendency for people to choose exchanges will definitely be more careful.

There are many exchanges that are starting to be developed but not many people use them for the long term and even though they provide useful events for users, they still register only to take advantage in the short term. The definition of mass adoption that I know involves many people and what do you think about this. Market trends may attract new people to get involved, but I doubt people will choose an exchange that doesn't have a good reputation.

+1 I don't know Bitget but I do know that Binance (not sure about Kucoin) got really big just because they held round the clock events. Even Pancakeswap which used BSC primarily did millions per hour on a almost dead utility chain just from events.

Bull is easy, the test is bear. Binance was smart. Make the money and hype during the bull, quietly expand n the bear and "buidl" and wait for others to collapse and grow your market share.

Don't think Bitget won't get in trouble though, it's always when not if, when you're dealing with regulators.

Most of them are doing that regardless of the market situation. That's why you see promos left and right from them and it's up to the newbies if they're interested with it.

Usually, these promos are even easy to comply but definitely going to require you money for you to become eligible. Like tasks that you need to complete and finish and you'll receive the reward.

Those are the typical promos that we get to see from these exchanges and it's part of their marketing to attract more customers to come and visit them.

I feel this is a seasonal stuff which happens during all the bill run but the difference this time is that we are yet to enter an full fledged bull run but rather the news like Bitcoin spot ETF and upcoming Bitcoin halving has created buzz and people especially newbie are getting into crypto in FOMO. We will be able to see the market market saturation of there are any price correction before the halving which doesn't look within scop this time as back to back Bitcoin related event has sent positive ripple across the crypto world.

I just hope newbie don't end up losing like previous set of newbie who entered market in 2018 and 2021.

The main source of income for exchanges is trading fees. The more trading that takes place, the higher the income ... and trades mainly take place in market situations that are characterized by euphoria, i.e. bull markets. An exchange can of course open up other areas of activity, such as traditional share trading, but the situation is very similar there too - and you are also competing with traditional banks.

Even very large exchanges such as Kraken and Binance have seen that they had to reduce staff (sometimes drastically) during the bearish phase in 2022. Smaller exchanges such as Bitpanda were just as affected.

Talking about licensing and transparency, I think Bitget stands out in that plus am trying to figure out how Binance and Kucoin got into trouble just by dishing out beneficial events because I love participating in trading events and I have been doing it with Bitget and I haven't heard any ugly report about them anyways. Just like your first paragraph rightly pointed out, exchanges depending on bull market for survival will be out of business in no time and that's why ecosystem development is key. Of course some exchanges have been doing really well in that regard.

Yes, I mostly agree with you over a 0.5-1.5 year term. As historically, the halving has caused positive upside for Bitcoin in the months after the halving has occurred.

However, I'm talking about before April, we still have 4 months left.

What everyone forgets is that while whales and institutions move the market, they aren't able to just market sell or market buy the amount that they would like to. They do it over longer periods, building orders over time on either end, or causing supply/demand through external means.

Let's say hypothetically that institutions were aware of their plan to submit ETF applications at the start of this year at 15k. Don't you think that they would accumulate, in lead up to their news? Then, further capitalize from the gains made from their news and bullishness over the last 6 months following initial news?

Now from here, do you think they will just enjoy the ride upward? Or, create some orders for profit?

No, now the difficult us offloading what has been accumulated and rebuying cheaper.

The best way to do that is to let retail buyers buy into sell orders after the ETF news, taking profit at the highest possible prices from inexperienced market buyers...then, dump it and reaccumulate as these inexperienced investors sell.

Not to mention, imagine all of those who have long positions for exchanges to liquidate...and the short opportunity available as well, for those in the know.

All theoretical but it"s what people least expect, and generally that's how I see things go in this market. Nothing is as straightforward as just up.

The size of the global market value of cryptocurrencies is mainly controlled by Bitcoin, and if we omit Bitcoin and stable currencies, most of the trading volume will be false or is a display within the platforms where it can be easily manipulated. This often happens after the price of Bitcoin rises, so the recent rise is justified and realistic.
The rate will continue to rise to reach about 3 trillion dollars, the highest market value for Bitcoin, and about 6 trillion dollars, the highest market value for the entire market, with the percentage returning to 2 trillion after a while.

Lol if exchanges only learn to rely on bull markets or positive sentiments like now, then they better be prepared to lose business longterm.

"Dishing out beneficial events" you mean like Binance did all the time? They eventually got in trouble for that. Or how about Kucoin now in trouble also? Their primary activity was dishing out events.

Just be a good exchange. Transparent and licensed and always fair fees. Make it better faster safer than a bank, now thats how you drive adoption man.

I am more optimistic with halving and its effects for Bitcoin price, a new bull run than ETF decisions. Bitcoin Spot ETF applications can be approved or refused by SEC. and approvals will be a big booster for Bitcoin to take off to the moon. In an opposite decision, SEC. refuse all Bitcoin Spot ETF applications, it won't be a disaster or the end for Bitcoin and it won't be a barrier for its bull run.

By history of past cycles, I believe Bitcoin will still have its bull run even we won't have any Bitcoin Spot ETF approval in 2024 or 2025. I don't worry too much about SEC.'s decisions.

What exactly is your definition of mass adoption? People using crypto to buy stuff, or more users doing trades on the crypto market? If it is the latter, I second the opinion that they always do that regardless of the market condition. Even Binance is doing that with different programs such as their latest raffle airdrop. My local exchanges also regularly do promotions even though the benefit for new users is probably not that great in the long term.

If it is about more users using crypto, I honestly doubt they care about it that much. This does not mean they won't advertise to the public, but it won't be their priority at all. Especially if the number of regular visits or registered users on their platform is still as high as ever. CMIIW.

This would take quite a coordinated effort with a collectively large amount of capital. You can use tools like Glassnode to try and conduct on-chain analysis and analysis of exchange wallets to see if you can find any data. There are also other tools out there which can give an indication of overall leverage on exchanges however I don't personally trust these too much.

Whether this is the truth or not, it is something we can not control. The fact is:
- The having is coming
- The ETF decisions are around the corner
- We are in a Christmas rally
- People are excited

If institutions/collectively large capital entities are taking advantage of the above, then so be it, keep it in mind and don't join the crowd.

Based on the past, we shouldn't be surprised if this is the case and we shouldn't expect to be able to do anything about it (for now, sadly).

Total cryptocurrency market cap is from total cryptocurrencies in the market and you must know a biggest hidden fact: there are more and more cryptocurrencies with time.

More new cryptocurrencies will be created with time and those new cryptocurrencies contribute to total market cap. If you see a cryptocurrency total marketcap increases, you must take into account contributions from new cryptocurrencies. By that I mean the increase of total market cap does not come from increase of previous cryptocurrencies. If you think so and don't count new cryptocurrencies and their market cap, you will have an inaccurate thinking about the market.

I'm pretty sure most half-decent exchanges have promotional campaigns regardless if the market sentiment is bullish or bearish. The difference in bull markets is that they likely shell out more money due to the better r/r.

Price never indicated adoption. In the big bear markets, which sometimes lasted over year long period, we always saw things going up and up for adoption. New users new wallets, new tech. biggest example was that NFTs were created and adopted in bear markets remember?

Inflow of capital yes, but price growth nothing to do with adoption or utility in short term.