The idea to create a new cryptocurrency exchange came up when the founders identified some crucial shortcomings in the present Cryptocurrency exchange ecosystem. The founders had a strong belief that the cryptocurrency exchange ecosystem has more to offer. Following are the biggest gaps which caught our attention:
1. Lack of a mature ecosystem -lack of regulations on the way trades operate on the exchange often allows “whales” to manipulate the prices of certain currencies which is against the interests of other traders. Despite the cryptocurrency space growing rapidly and currently having a market cap of about $300 billion the trading ecosystem is still premature. There are several exchanges which suffer from serious liquidity concerns and many charge high trade fees which are very expensive to many people around the globe.
2. Friction in dealing with fiat currencies — Often getting liquidity in fiat currencies against crypto assets is a hassle and leaves currency holders at the mercy of market volatility which often can lead to people losing out on money due to delayed processing either by the exchange or the banks.
3. Lack of good customer support –Traders often complain of bad user experience due to the non-responsive customer support provided by many exchanges. Often it is either the lack of management staff to handle the requests or a lack of will which leads to a poor customer support. We identified that most of the exchanges do not spend enough on customer support.
4. Security issues — the cryptocurrency space is often being bombarded by hackers who try to use the vulnerabilities present in the exchanges to their benefit. Many exchanges in the past have suffered cyber-attacks which has led to losses in the order of billions of dollars. Often, not following the industry standards and neglecting the basic rules of cyber security allow for such attacks to happen. Thus, exchanges do have a huge responsibility on their shoulders to protect the hard earned money of their customers. 9 White Paper v1.3 | www.kubitx.io
5. Lack of awareness and education among the masses leading to a low adoption rate — Due to a lack of education and knowledge about the Blockchain and cryptocurrency space, people are reluctant to be a part of the cryptocurrency ecosystem which has led to the market being dominated by a select group of traders who are able to manipulate the market at will. This fluctuation and volatility further lowers the rate of adoption of cryptocurrency trading.
Thus, we got motivated by the idea that we can provide sustainable and progressive solutions to the above-stated problems through comprehensive planning and diligent work. Moreover, though Africa has the smallest share of the number of cryptocurrency exchanges when compared to the world (4% of the total exchanges) according to a study conducted by Cambridge University1 on cryptocurrency exchanges, the adoption rate is on the rise. This not only acts as a source of motivation but also puts a great deal of responsibility on our shoulders to deliver the best services to people belonging to developing and LDCs (Least Developed Countries).