Topic: Experts: Many Small Cryptocurrency Exchanges To Go Out Of Business Soon - page 2. (Read 284 times)

small exchange have to look for another country that has not had a local exchange, but has many crypto users. so they can take local market share to meet the demand of selling and buying or exchange into the fiat currency of the country itself.

These smaller exchanges will always be needed to listed the newer coins that have a low volume of trades. If the coin is popular with regular trading activity then the house will make a tidy profit, enough to keep going. It just needs at least one good almost exclusive coin to survive

Garbage article, it doesn't explain anything at all, it doesn't even talk about exchanges going out of business almost. Running a crypto exchange has to be quite profitable even if you don't have a lot of volume, at the end of the day you only need a few people to run the support team and most of the expenses are going to be related to servers, that's it. The only reason why small exchanges could go out of business is lack of overall volume in the market like right now but unless it happens for years, I don't really see any problem.

I also sense that many of those little exchange are going to disappear in the near by future. By the way we even prefer for a tokens or coins that we have invested in to be listed in big exchange like poloniex and binance one can really said that many investors are not interested to trade they tokens or coins with bitcoin on those small or decentralized exchange. Most of those new exchange are not really secure and some of them are not even ready to spend the money raised during icos to secure it.  I think we should be careful when trading on those exchange as it can be hack at any time.

The exchanges getting hacked all the time isn't really helping with the price movement either.. It makes people afraid to invest in Crypto. Why invest when your money could disappear at any moment? A lot of people just hear "Stolen Bitcoins" and don't understand the rest of what was really going on.

The top exchanges are still pulling in MASSIVE profits during this downtrend.  IT does get extremely annoying having to sign up for 20+ different exchanges because the certain coin or token you have is only listed on a small exchange.  

It's been said over and over but I'll repeat it: Your crypto is never safe on an exchange, we are seeing hacks happen constantly now, even the biggest, most secure exchanges are not safe.

Yes majority of them may fail and close due to unattractiveness and stiff competition, but some of these small exchanges might outclass goliaths just like Binance and Kucoin. These two are the new favourite I guess since they are most talked by traders. But competition will not end and there are a lot to improve and implement in the space so the battle will keep going.

Exactly it makes perfect sense if you analyze it objectively. Unfortunately for those exchanges getting started last year because if the bull run had continued they would be prominent in this space. But because things took a turn for the worst and most cryptos were overbought this was inevitable.

This has been mentioned in so many times if the decentralized exchange site is the only solution for this case. Did you ever see the decentralized exchange site are getting hacked on its hot wallet and i never see that. Remember forkdelta hacked case just replacing the real DNS to the fake DNS that redirect the new users into the scam site.

Yes, I very much agree that this year is a exchange war. Once their funds are insufficient to sustain dividends on exchange tokens，I think that many exchanges will soon be closed down.

Interesting article, thanks for posting.

I also think that some smaller exchanges might dissappear soon. One should also keep in mind that with last year's hype many man new exchanges came into live. Now with the bear market only the best (biggest, most profitable, securest) will survive and some will dissappear. It's just the normal "business cycle of life"

Experts and analyst in the crypto industry have predicted a widespread shutdown of small exchange platforms because of their inability to attract investors. A report released by 8BTC.com, a blockchain news platform operating in China, indicated that the first 14 major crypto exchanges take up about 73% of the total value of transactions made in the market, with the rest of the 170 small exchanges accounting for only 27%. This presents a huge hurdle for the small, ambitious crypto exchanges to maintain a profitable market share and scale up their operations.

Security Fears

Besides this stiff competition, the crypto world as a whole faces issues related to fraud and security. It’s only a week ago that Cattleex, a crypto trading platform, went bankrupt after failing to meet market demands by its miners.

Bithumb Exchange, another South Korean platform, also lost money in a hack that culminated in its temporary suspension of all deposit and withdrawal services on its platform. Youbit Exchange, also based in South Korea, declared the failure of its project after it was hacked.

Despite the central bank of China banning initial coin offerings (ICOs) and crypto exchanges, many Chinese startups are registering their exchanges outside China and targeting Chinese investors. The many cases of fraud in the Chinese crypto world haven’t helped the situation.


Read More: https://zycrypto.com/experts-many-small-cryptocurrency-exchanges-to-go-out-of-business-soon/