Cryptocurrency Exchange: Existing Problems

In recent months, an increasing number of users have registered on various exchanges, causing severe interruptions — which, in turn, interfere with the full processing of all transactions. For instance, the CEX.IO Bitcoin exchange platform had to suspend the opening of new personal accounts on its website, as the support service was processing too many registration requests daily. The number of those waiting for confirmation became critical.

Undoubtedly, ICOs are becoming the most effective way to earn billions these days. With no centralized authority to interfere, the potential to make a significant profit is exceptionally high. In the year 2017 alone, more than 4.2 billion dollars were collected through ICO fundraisers. But it is only true when the investors use their wits and funds wisely. Not every Cryptocurrency token out there has a bright future ahead. So, it is crucial to calibrate every aspect before investing in any ICO.

Not understanding the concept of cryptocurrency or ICO altogether is less likely to be a scenario here. …

ICOs raised nearly US$ 5 billion over the entire year in 2017, while in 2018, US$7.8 billion have been raised already[1]. Clearly, ICOs have emerged as the new age crowdfunding and the number of companies who are choosing to take the ICO route for fundraising are on the rise. Without a doubt, the cryptocurrency token is ‘the new thing’ all over the world. Though many ICOs surfaces every now and then, not every one of them has the potential to make you earn billions.

Let’s take a look at some of the best ICOs of 2017 and 2018. Several companies that launched their ICOs in 2017 mainly focused on the exchange between various cryptocurrency tokens. However, since the year 2018, a lot of innovations have been witnessed. …

Current State of the Cryptocurrency Exchange Market

Since the beginning of 2013, people have been investing in cryptocurrencies to profit from their growing value. The cryptocurrency market has grown sensationally, raising over $800 billion in 2018. The popularity of crypto investing has been conditioned by a growing increase in value. Bitcoin, for instance, has grown in value by 25,000% since 2011, while Ethereum’s value has skyrocketed by 2,700% in just one year. Taking into consideration other types of cryptocurrencies, their total value has gone up by 10,000% since mid-2013.

A centralized exchange is a trading platform for buying and selling or converting assets via a single location or service. As they are centralized, there have been a lot of problems with them since the very beginning.

Types of Crypto-Exchanges

We can distinguish several basic types of crypto-exchanges:

• Platforms that do not support input and output of fiat assets, but work with cryptocurrency pairs only (e.g., Poloniex and Bittrex);
• Micro-exchanges that also do not support fiat, but deal with new tokens of different ICOs and a couple of common cryptocurrencies (e.g., CoinExchange, C-CEX);
• Crypto-exchanges of the initial level, working with the most famous cryptocurrencies exclusively and not supporting work with FIAT (e.g., …

Cryptocurrency is evolving at a frantic pace. The overall market capitalization[1] of all the cryptocurrencies is $ 417 billion currently and is poised to hit the $ 1 trillion by the end of 2018. ICOs or Initial Coin Offerings are the smart new alternative to Crowdfunding where “coins” or “tokens” are issued to early investors in lieu of their investment. Coindesk reports that by April 2018, $6.3 billion have been raised through ICOs, making the figure stand at 118% of the funds raised in the entirety of 2017. Though the number of ICOs is just 59% of the total number of ICOs in 2017, the sheer volume of funds raised is huge. …

Today, an ICO launch is one of the most successful methods of raising money for projects running in different areas, and it is finding appreciation with millions of people all over the world.

Initial coin offerings (ICOs) are known for their successful operation and great profits for investors and stakeholders, but they are not without their flaws.

Let’s discover the most important flaws to help investors navigate the burgeoning crypto-finance ecosystem with confidence.

Neglecting Compliance and Regulatory Requirements

One of the main reasons why ICOs fail, even after providing all of the necessary details for blockchain development, is neglecting the areas of compliance and regulatory requirements.

This is especially true for ICOs established in countries with strong regulatory control over blockchain companies.

Before launching a blockchain startup, creators must conduct deep research into the chosen industry and the appropriate regulatory body. For example, ICOs based in the US have to learn the SEC and FINRA regulations to functionate in compliance with them. …