The Great Cryptocurrency Exchange Cleansing as Bear Market Separates the Men from the Boys

It seems that the cryptocurrency bear market has been affecting not only a few Initial Coin Offerings (ICOs) but also several crypto exchanges. According to Travis Kling, a former Wall Street portfolio manager, the market will be moving forward after cleaning the market from weak competitors and companies.

Mr. Kling commented that there are several projects shutting down, exchanges closing, SEC enforcement, layoffs and more. This is the only way for the market to keep growing in the future.

The comments he made come just after the Liqui exchange, a Ukraine-based exchange stopped operating due to illiquidity.

Apparently, crypto exchanges are facing some issues due to an unregulated cryptocurrency space. There are several companies that started Initial Coin Offerings and shortly after gathering millions of dollars they left the market without any product or service for investors.

According to a recent study released by CipherTrade Cryptocurrency Intelligence, most illegal transactions related to digital currencies tend to happen in exchanges without proper KYC and AML restrictions. Exchanges rely on commission-based income models related to the number of trades that individuals make on these platforms.

As trading volumes fell during the whole 2018, exchanges are not so profitable as before. Furthermore, countries that have strict rules on digital assets have also pushed crypto exchanges to shut down their operations, as it happened in India with ZebPay, for example, or in Italy with BitGrail.

As mentioned before, having a prolonged bear market helps space grow even faster in the future. According to Balaji S. Srinivasan, CTO at Coinbase explained that it may be the crypto winter for the price of most digital assets but it feels like the summer for innovation. He mentioned several developments in the market such as decentralized lending, interest, derivatives, prediction markets, and many other things.

Damon Nam, the Coinvest founder, said that the crypto market needs more credible and experienced entrepreneurs, more use-cases, more products that solve real problems and more compliance, among other things.

As explained by Jameson Lopp, CTO at CasaHODL, fundamentals behind Bitcoin is very bullish compared to its price. He said that the price is just one of the many aspects of digital currencies. Lopp wrote an article in which he shows that Bitcoin’s fundamentals continued to grow during the whole bear market in 2018.

Get Free Email Updates!

*Action Required* Enter Your Email for Trending Crypto News & Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Coin Market Cap Price Change 24 Hour Volume
BTC $139.06B $7,851.3413 -1.30% $7.47B
ETH $26.38B $248.5182 -2.29% $2.83B
XRP $16.6B $0.3941 -2.93% $865.84M
BCH $7.22B $405.9990 -2.51% $836.86M
EOS $5.7B $6.2482 -1.40% $788.67M
LTC $5.64B $91.1420 -3.49% $789.68M
BNB $4.05B $28.6824 -1.04% $263.63M
USDT $2.87B $1.0023 0.08% $7.14B
XLM $2.57B $0.1335 -4.39% $65.61M
ADA $2.19B $0.0845 -0.80% $105.6M

Get 3 Free Bitcoin eBooks for Limited Time Only

Receive three exclusive user guides detailing a) What is Bitcoin b) How Cryptocurrency Works and c) Top Crypto Exchanges today plus a bonus report on Blockchain distributed ledger technology plus top news insights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here