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    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.

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    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

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