Topic: The crypto exchange industry is saturated - Agree or disagree? - page 3. (Read 10027 times)

I do not think there is saturation happening in the crypto market but only from exchanges (Binance, Okex, Huobi ....). Because big exchanges have investors, big organizations speculating? This seems unfair to the next generation advanced crypto exchange solutions built. Specifically as Xbase. In commerce or business, if you refuse opportunities, abandon ideas or stop development. You will not be successful. If Apple does not have its own unique characteristics, it will not be able to create its own special spaces and specialties in the world. 

I'm not suprising if theres a lot of new exchange site will introduce in the market since cryptocurrencies are being popular all over the world, but I dont think if this new exchange site will compete to the big exchange site in the market, and I dont agree that what OP said that new exchange site cannot surpass big exchange site because the time will come a new exchange site that has a capability to bring user a good services and friendly exchange site like what Binance did for a couple of years.

The best exchanges do change from time to time. Sometimes better exchanges emerge. Before Binance there were other big exchanges. Binance rose and now it's among the big players in the industry. One has to try and, if his strategy is good and the stars align right, the exchange can become big.

Bitfinex was not the same after the hack. Binance almost fallen after the hack. Poloniex and Bittrex did the KYC "force" in the bad way. There are events which, if handled incorrectly by the big players, can make them unattractive anymore and people will choose something else.

Choice is good. Competition is good. Don't underestimate them.

In the future, there will be many more new exchanges that will launch because they have a different reason to do that.
They know that it will difficult to compete with the existing exchanges because they were already bigger than them.
They only targeted the local people because they know that they need time to make their exchange bigger.
At that moment, I don't think that money will be their reason to launch the exchanges, but I think they need to gain trust from people so they can become bigger in the future.
But we don't know if the market now becomes saturated because of many new exchanges in out there and makes traders confuse to choose the right exchanges.
Traders will find out by themselves of the right exchanges that will suit them.

Every industry is saturated and that's perfectly fine.Competition is a good thing.
Do you want some kind of crypto exchange monopoly to dictate the crypto prices and trading fees?

But it is entirely possible that some new small exchange will grow and outperform the large ones.
Well, or traders will use only DEX platforms, and top centralized exchanges will become unnecessary.

You have a point. However, let me add that maybe we have a saturation with unreliable and potentially problematic cryptocurrency exchanges as there seems to be a rush now to put up and introduce similar platform to take advantage of the expanding market. We are in the open market and so it is just natural that a healthy competition can ensue. As they are saying, the more the merrier the better. Of course, some of these players will wither under the sun and die a natural death due to lack of business. Let the fittest survive.

In conclusion, we have a saturation yes at some point but generally speaking there remains to be the demand for good, reliable, transparent, user-friendly and innovative cryptocurrency exchanges (and may I add a decentralized one but is convenient and offers the better experience that what can be found presently as I hate the current decentralized format).

I don't think new exchanges are trying to compete with huge and top exchanges but they all know how they could earn through it. The problem with new exchanges is they couldn't reach the expectations and the security which traders have been expecting from them.
They could start building their own exchanges but they couldn't surpass the reputation of top exchanges.

I don't think newcomers in the exchange industry want to compete with the solid exchanges. They are established already. What I am thinking is that it is a healthy competition. Each has its own feature that makes them stand out among others. People and clients are looking for exchanges that would satisfy what they are looking for like exemption for KYC, the trding fees and or withdrawal fees. They are comparing them to know what is best and user friendly to use.

History of bitcoins tells us that new exchanges will continue to emerge and replace the older exchanges as the most used exchange. Right now Binance is the best exchange, but in a few years, another exchange will probably have taken that spot.

It's not yet actually so saturated and i prefer it if there are more exchanges for many reasons rather than if there well few.
If there are more exchanges, it kills monopoly of the market which comes with a lot of disadvantages.
I will quote what I said some time back about the importance of having many exchanges in the crypto sphere

I agree. A lot of the newer exchanges really don't bring anything new to the table at all, and even if a newer exchange was released and had useful and unique features, I would likely not use that exchange initially solely for its lack of reputation unless the feature(s) were extremely useful or important. I primarily trade with Bitmex and Binance as I prefer to avoid KYC while trading, and unless radical changes happen to either of those exchange I do not plan on switching over to any other exchange.

I still think there will be other major exchanges in the future even though many of the newer exchanges don't offer anything new, though. Binance opened in 2017 if I remember correctly and it's now one of the biggest exchanges out there as of right now. There's still places where things can be improved, and if an exchange happens to adequately improve on areas where other major exchanges are weak and offer reasonable fees and good services, that exchange can grow to become bigger and bigger.

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there are 258 exchanges... maybe I saw it wrong, anyway I saw it here:

https://coinmarketcap.com/rankings/exchanges/3

this market is saturated with exchanges that provide low quality services

I don't think that market has been saturated. How many people are in the crypto industry right now? Not even 1% of the whole population? So there's still a lot of people who might enter the crypto industry and that is what these new exchanges might be targeting.

If there's more competition in the business then it will be good for us. And just like I said it's business, so obviously, they want to take advantage of everything and make some money out of this billion dollar industry, imho.

As what I have seen in the crypto market nowadays, new exchanges keep emerging. But why?

Is it because they want to compete with Binance, Okex, KuCoin, etc., and believe that they would surpass them?

In my opinion, there's no way that these new exchanges would surpass the big players in the market. Thus, it's already saturated no matter what "magic" or unique feature that they had.

There are two exchanges that I have encountered that they've launched their ICO before. I don't want to name them, but after launching their exchange, trading volume is zero to very less. You know why?

It's because most active traders are trading and arbitraging in established ones rather than trading on the new ones with no to very less volume at all. Correct me if I'm wrong, but investors and traders doesn't care anymore about the features. They just stick to big players like Binance with a lot of trading volume and activity.

No matter what their new features are, it has no to very less impact to investors and traders. In other words, creating new crypto exchanges are meaningless.

I just don't understand why are they still making their own despite they know that they can't topple Binance? Hoping to make a lot of money from listing and trading fees? IEO launchpads?

Do you guys agree that making our own crypto exchange isn't worth it anymore in today's market situation? Is it really saturated now?

I'm looking forward to your opinion or feedback regarding this one and I would appreciate it no matter if you agree or disagree. Thanks in advance.