Competition and profits see cryptocurrency exchanges get creative

How do you disrupt the disruptors? New exchanges are digging deep for a competitive edge.

The ability to seamlessly cross borders is one of the consistent features of all cryptocurrencies, and the top exchanges tend to service customers from almost every country in the world. The biggest names each pick up a significant percentage of what might be a multi-trillion dollar market in coming years, and is already well into the multi-billions.

Consider Coinbase for some perspective. It’s perhaps the USA’s biggest name in crypto, but its GDAX exchange is only the tenth largest by volume. Note that the trade volume figures should be taken with a grain of salt, due to evidence of wash trading to fake volume on some of the top 10.

Despite that Coinbase still managed to have a billion dollar revenue year in 2017, with December alone giving the company almost $500 million, all while the proportion of people touching cryptocurrency in the US was well under 10%, and the vast majority only ever traded very small amounts. Trades have slumped with crypto prices in 2018, but that hasn’t stopped exchanges from predicting another bumper year in 2018.

Essentially, there’s an almost incomprehensible amount of money waiting for the world’s top exchanges in coming years, making it well worth fighting for a reasonable-sized piece of the pie.

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Source: Competition and profits see cryptocurrency exchanges get creative | finder.com.au