Money flow to the cryptocurrency sphere, but is it ready for such growth? It turns out that infrastructure hasn’t been prepared properly for it.
Centralized cryptocurrency trading platforms often stop working at most important moments in the market.
The development of DeFi and Yield Farming, when decentralized finance attracted more than $ 9 billion worth of cryptocurrencies, brings to predictable growth in inflows to bitcoin and other cryptocurrencies. There is a probability of the repetition of a similar situation as it was in 2017 when the market, which was largely inspired by the success of the ICO, brought the price of the oldest cryptocurrency to a historical maximum of $ 20.1K on December, 17, three years ago.
But is the market ready for a serious rise in leading cryptocurrencies and an increase in the turnover of transactions for the purchase and sale of digital assets? Experts point out that centralized crypto exchanges often experience problems with customer service. So, even if such big crypto-exchange as Coinbase stopped work several times when bitcoin bounced up by 10% only.
In March of this year, when a unique opportunity appeared to enter the market and buy bitcoin at a low price, a number of sites including Gemini, BitMEX, and Kraken were working intermittently. As experts state, “despite the fact that the cryptocurrency market has been in a bearish phase for three years, nothing has changed in the way cryptocurrency exchanges work.”
The market demand for a reliable crypto exchange is now more than ever: the growth of interest in cryptocurrencies on the part of investors is huge. The crypto sphere should not lose its face. At the same time, sudden stops in the work of sites continue to be the same problem that happened recently to Coinbit. One of the South Korean crypto exchanges was suspected of faking the trading volume, which, as you know, is the common problem of the cryptocurrency industry as a whole.
Wash trading is a common thing nowadays but it can be eliminated with regular independent audits of trading platforms. Returning to Coinbit, this exchange has never applied for this service.
Finally, there is one more problem that crypto exchanges face now. This is cybersecurity. Hacks and stealth of customers’ funds raise concern since in most cases the nature of the phenomena remains unclear.