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How Young Crypto Exchanges Compete with Market Giants



Users expect exchanges to find a balance between trading experience and security. An average trader requires a secure, fast, compliant, and flexible trading terminal.

Blockchain and the tokenization of assets are changing the world as we know it. From logistics to entertainment, hospitality, and healthcare, this nascent tech is redefining the foundations of several industries.

Through the tokenization of assets, blockchain technology is enabling a new wave of borderless transactions free from third-party intermediaries. Put differently, anyone across the globe can transfer funds instantaneously and at minimal fees. Primarily, blockchain is disrupting the financial ecosystem by making it more democratic, accessible, and efficient.

According to Johannes Höhener, Head of Fintech, Swisscom Digital Business, “digital assets are the financial instruments of the future. They are tradeable on a more granular basis and enable more differentiated portfolios.”

The implications of a tokenized economy are quite immense. In addition to seamless money transfers, asset tokenization allows for fractional ownership to a much broader pool of investors. To this end, any valuable asset can be tokenized – from blockchain issued currencies to government-backed digital currencies, securities, commodities, and contracts, amongst others.

Data on CoinMarketCap reveals that there are over 8,000 digital assets. This number is an indication of how widespread the concept of tokenization is becoming.

What do Users Expect?

In order to buy or sell tokenized assets and cryptocurrencies, people turn to exchanges. Although the crypto exchange market has had its fair share of setbacks, the onus is on new and existing platforms to understand the pain points of trading cryptocurrency and solve them. Users expect exchanges to find a balance between trading experience and security. An average trader requires a secure, fast, compliant, and flexible trading terminal.

That said, there are not enough crypto exchanges out there with the infrastructural resources to meet the needs of the growing community of crypto traders. More so, new exchanges have not had as much impact as you would expect of a competitive landscape. Very few have managed to put together formidable crypto exchange services. Unsurprisingly, this has hurt the innovative rate of the crypto exchange sector.

In a bid to understand the limitations that new exchanges face and how they could navigate them, we decided to use the emergence of Binaryx, an Estonian-based crypto trading platform, as a case study. Binaryx has excelled where others have failed. Therefore, it is only fair that we investigate how it has attracted and retained users successfully.

The exchange platform combines several exciting features to provide the best trading experience for both professionals and non-professionals. Some of its dominant features include:

  • A scalable trading terminal interface for novice and pro users.
  • An academy comprising an expert community.
  • Award-winning lean design
  • Responsive and flexible support

What Are the Problems Young Exchanges Face?

Liquidity is a recurring issue for young exchanges. They must find a way of providing fluid and sustainable trading services without distorting the prices of cryptocurrencies. This is an issue that is also prevalent in some established exchanges. And so, there is even more pressure on young exchanges to identify innovative ways to tackle them.

On the subject of liquidity, which is a core challenge with most small exchanges, Binaryx relies on several techniques to solve this problem. In addition to its own liquidity pool, Binaryx relies on liquidity providers to supply the relevant data to allow the exchange to feed its order-books. Furthermore, Binaryx gains liquidity from other exchanges through APIs.

After dozens of fraudulent schemes hiding behind the signboard of crypto projects, users started to pay special attention to the legal component and transparency of startups. Binaryx approached the issue seriously – the company is registered in Estonia and has all the necessary licenses, which allows it to operate in accordance with the laws of the European Union and ensure legal transparency.

Considering the number of crypto exchange hacks that have happened in the last decade, the importance of security cannot be overemphasized. To an average user, ease-of-use and security are arguably top on the list. Also, it stores a significant percentage of users’ funds in cold wallets. This is in addition to fiat backups in different bank vaults across the globe.

How Do Young Exchanges Manage to Compete with Major Competitors?

Having understood the challenges that new exchanges face, we thought it wise to unravel Binaryx’s secret formula to successfully establish a new company in a cutthroat industry. The CEO Oleg Kurchenko revealed that the platform had implemented a wide array of solutions to eliminate the challenges associated with running a newly launched crypto exchange. Below are some of the implemented features.

  • Binaryx is committed to protecting users from attempts to exploit clients’ vulnerabilities: multi-level access to all vital components, 2FA, anti-phishing code
  • Award-winning lean design ensures user’s convenience
  • Publicity of founder and team and access to all necessary legal information to guarantee a highest level of transparency
  • Its offices in Ukraine and Estonia come fully fitted with the ideal security provisions, including the latest technologies.
  • Fast and simple registration process, that requires only a few minute.

According to Kurchenko, the combination of these implementations has helped Binaryx carve a name for itself in the crypto exchange sector. “We knew before the launch of Binaryx that we had to adopt an innovative approach to crypto trading to stand a chance of competing in the big leagues,” Kurchenko stated. “Therefore, we are leaving no stone unturned in our quest to deliver an intuitive and efficient trading platform for our community of users.”

Competing with the big players, young exchanges are forced to offer users experiences that the big players cannot provide. Most newbies prefer the more established platforms, but smaller platforms can often offer a more flexible experience that is more tailored to the needs of the user. Due to the highload, many major exchanges are experiencing technical problems, which causes users to lose their money. That is why there is a tendency to move to smaller platforms that can ensure the stable operation of their products.

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Author: Andrey Sergeenkov

Founder and editor at BTC PEERS. Andrey writes about financial experiments, DeFi, cryptocurrency, and blockchain.

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Kraken CEO Jesse Powell Says Company May File for IPO ‘Sometime Next Year’



In the interview with Bloomberg, Powell noted that Kraken currently has “no reason” to raise new capital. The CEO, however, pointed out that the company may seek to accelerate its acquisitions.

The founder and CEO of US-based cryptocurrency exchange Kraken Jesse Powell said that the company may file for an initial public offering (IPO) in the coming year. Although Powell said the listing may come “sometime next year,” the CEO added that there are “no guarantees.”

Kraken CEO Says Company May File for IPO in 2022

Kraken CEO talked about the company’s potential IPO during an interview on Bloomberg TV on March 3rd. In response to whether he would take Kraken public at a $10 billion valuation, Powell answered:

“We are certainly on track though $10 billion dollars is a low valuation. I wouldn’t be interested in issuing shares at that price.”

Before Powell’s recent interview, Bloomberg had reported that Kraken was working on raising new capital that could move the company’s valuation from $4 billion to $10 billion. According to Bloomberg, Kraken was in talks with Fidelity, Tribe Capital, and General Atlantic to raise an undisclosed sum. Citing familiar sources with the matter, the report added that Kraken’s valuation could exceed $20 billion depending on demand.

Kraken’s valuation reached $4 billion in 2019 after the company raised $13.5 million in a financing round. The exchange saw more than 2,000 participants in the funding round.

In the interview with Bloomberg, Powell noted that Kraken currently has “no reason” to raise new capital. The CEO, however, pointed out that the company may seek to accelerate its acquisitions.

Speaking further, Powell talked about Bitcoin price and what investors should know. The CEO said that there was no reason to sell BTC. He stated:

“I think a lot of people are just waiting to buy the dip. I do think if you’re buying bitcoin based on speculation you should be looking to hold over a five-year period.”

Bitcoin Rebounds from Dip

After declining in the past week, Bitcoin has rebounded to cross the $50,000 milestone again. In the early hours of trading March 2nd, Bitcoin started recovering from the 21% dip recorded in the past week.

In a recent report, Coinspeaker stated that Bitcoin’s recent gains seem sustainable due to the healthy state of the futures market. As Bitcoin rebounds, there are predictions that the king coin may reach above $58,000, putting an end to pullbacks. The COO and co-founder of Stack Funds said Bitcoin may hit a new high of more than $58,332 if the digital asset closes at over $52,100.

A market analyst, Joseph Young, commented on Bitcoin’s recovery t0 $50,000. In a tweet, Young said:

“This time it’s [BTC] at default funding, no overcrowded futures market, spot market parity with futures, and high Coinbase premium, coupled with large outflows and institutional interest.”

Despite bullish predictions, currency strategist at LMAX Digital, Joel Kruger, told CoinDesk that he believes Bitcoin may still record losses in the future.

At press time, Bitcoin is down 3.66% to $48,620.46.

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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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Ethereum DeFi Trends Set To Dominate 2021



Alex Kyriakopoulos

2020 was the year of DeFi, not just in terms of the explosive price increases – but the technological advances and support from public figures.

From the growth of UniSwap, Chainlink, AAVE, and BNB into the top 20 tokens by market cap to tech billionaire Mark Cuban revealing his positions in the aforementioned tokens, one must wonder what comes next. 

Improved security and auditing of contracts. 

Exploits performed by hackers on vulnerable DeFi smart contracts resulted in the loss of tens of millions of funds throughout 2020 and early 2021.

Flash loan attacks, where hackers can borrow large uncollateralized quantities of ETH and extract funds from exchange through complex arbitrage opportunities between stablecoins or manipulation of price oracles (the price providing part of a smart contract that interacts with market data outside the chain).

Auditing smart contracts before they go live as part of yield farming or lending strategies by third-party firms such as Nexus Mutual is necessary – and becoming the accepted norm for DeFi platforms. Users becoming acquainted with the basics of DeFi development processes and community-led initiatives to ensure complete auditing of contracts are also vital to its long-term resiliency.  

ETH 2.0

DeFi has grown from the Ethereum ecosystem but has reached a point where it is almost impossible to continue in the current Ethereum paradigm. ETH 2.0 promises lower fees – lending itself to the higher scalability that is needed for the financial products of the future. But more than lower fees, ETH 2.0 will hopefully address the first point raised.

As a proof-of-stake chain, Ethereum miners will be unable to modify blocks that have already been validated – ensuring the robustness needed for a secure financial ecosystem. Projects like Binance token (BNB) and Cardano (ADA) plan to capture the DeFi market through their blockchains, but with the overwhelming majority of initial development done on Ethereum, ETH 2.0 would likely place the chain in a dominant position over DeFi. 

Regulatory Pressures

Regulatory focus on crypto has primarily been placed on tax evasion and other fraudulent activity. DeFi. The regulatory framework for DeFi by the governments of the US, China, Russia is nearly non-existent.

Minimizing exit scams, implementing KYC on DEXs (decentralized-exchanges), and preventing money laundering remain pressing concerns.

Overbearing regulation, including policy, targeted explicitly at obstructing DeFi is a critical macro risk that users and project CEOs must be aware of and account for. Government Policy could ultimately end up much favoring centralized exchanges such as Coinbase – which filed to go public on the 25th. 

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Cardano Reaches All-Time High, Ahead of Ethereum in Transaction Volume



Alex Kyriakopoulos

Today has been a monumental day for Cardano. Caught within the recent crypto bull market, its token, ADA, hit a new all-time high price of $1.38 this evening. This marks an increase of approximately 2600% over the past year, as tracked by Messari

In fact, this milestone brings with it more good news for the smart contract platform. Over the past 24 hours, the surge of interest in Cardano has brought its on-chain transaction volume to $19.8 Billion, soaring past Ethereum’s $13.2 billion and second only to Bitcoin at $27.2 billion. 

All this activity has brought ADA’s market cap has exceeded both BNB and USDT to the third highest in the market, behind Bitcoin and Ethereum.

Initially released in 2017, Cardano was created by Ethereum Co-Founder Charles Hoskinson, through his company Input Output Hong Kong (IOHK) and the Cardano Foundation. Although he had previously expressed apathy towards the value of ADA, Hoskinson appears to be celebrating Cardano’s achievements on Twitter:

Cardano as a Smart Contract Platform

Cardano’s recent success comes as a surprise given its lack of major projects utilizing the blockchain. Although it has surpassed Ethereum in terms of transaction volume, Ethereum remains far more popular with regard to blockchain-based applications. This raises the question, will Cardano be able to maintain this success without dApps to legitimize it as a platform for developers?

However, Cardano’s lack of major applications may eventually change due to the publicity of ADA’s recent bull run. Cardano’s previous lack of volume may have acted as a deterrent to developers looking for a platform for their application, ultimately attracted by the ensured popularity of the Ethereum network. 

Alternatively, a developer might also consider the EVM-compatible Binance Smart Chain (BSC), which has found recent success in the realm of smart contracts. BSC remains noteworthy due to its popularity with recent larger applications despite a far lower market cap than Cardano.

This incredible surge of price may act as a resolution to the “chicken and the egg” scenario of lacking dApps due to lower volume and popularity, and lacking volume and popularity due to the lack of major dApps on the Cardano network. This bull market may very well put not only ADA’s future value in question, but Cardano’s future usage as a smart contract platform.

At the timing of writing, ADA remains just beneath its ATH and is holding steady, up 34% over the past 24 hours. Transaction volume continues to grow as ADA shows no signs of backing down.

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