Topic: Cryptocurrency marketcap decreases but number of exchanges increases? (Read 298 times)

but we still have to be careful in trading, don't let us get into the dirty exchange trap so we don't get the small pieces of cake that are expected

This is simply the way of making good money in a relatively short amount of time, so then, why of course, people want a piece of that cake!

Your whole thinking is off. Why shouldn't the number of exchanges increase just because the market crash? Would they still not collect fees from people trading and make money? What smaller cake, the market is still larger than it was a year and a half ago, probably a year ago. Grab a piece of the smaller pie. That's like saying why would anyone want to buy the dip, why not wait until it's at an ATH to get in.

these shitty exchanges may be flooding the system, but the other way round they are beneficial to the system, imagine if these minor exchanges were not there to compete with giant exchange like binance, what would have been the case? competition is good to checkmate competitors activities.

I couldn't agree with you more. Its true the number of these exchanges has boomed to try and capture a small share of the boom which is about to follow. To avoid getting scammed only use trusted exchanges like Bitrex.

Market cap is computed by multiplying total supply of all coins times the current prices of each coin. Since most of the market dumped or have gone down in value when compared to their peak prices in December 2017, it is a given that market cap will also decrease. The number of exchanges does not affect the computation of market cap.

there are lots of shit exchanges are coming and they are also listed shit coins in their site. i also experienced that last year badly. So i think verify carefully new exchange before using

There are many people who want to be get benefited by the boom in crypto currency that happened last year.
These all shit exchange are created to reap the benefits of boom.  Avoid trading in these exchanges.
 

Shitty exchanges are created in order to make immediate money from listing of coins. Each exchanges receive some minimal fees in terms of btc to list a coin. A scam coin's goal is to somehow list their coin in a scam exchange and run away with the money. On the other hand, these exchanges have the worst storages which exposes them to thefts and the coins get stolen easily from them or on some cases, the exchange devs run away with the leftout money.

A month back I came across a scam ICO which was sold at 1.5$ per coin, there were investors who invested in them. The coin was so realistic that they even spent money for advertising. Once after the ICO was finished successfully, they raised around 500k$. The team listed them in a shit exchange in order to make the investors believe in the coin. A few days later, the team weren't as active as they were in Telegram group during ICO, the price started to tank so hard and at one point of time the coin was removed from the exchange stating that it was a scam.

It's better to say that, these exchanges are present to list the scam ICO's and tokens for the sake of grabbing money from the scam team.

A flow be like :

Scam ICO's steal the money from investors---Shit Exchanges steal the money from Scam ICO's---Digital Thieves steal the money from Shit Exchanges

After peaking at approx $800 bil in Dec 2017, cryptocurrency market cap gradually decreased (~ 289 bil on 23 Jul 2018). But in contrast, the number of exchanges increased dramatically during that time.
Do people want to grab a piece of a smaller cake or they believe the cake become bigger? I am so doubtful about the latter scenario.