Decentralized Exchanges Going Through Growing Pains

[milanista 93]

News is emerging that the decentralized exchange (DEX), CryptoBridge, is ending operations. This announcement comes as a surprise to many. It also does not leave a great deal of time for depositors to remove their money.

 

 

The decentralized exchange landscape got a bit more crowded of late. In April, Binance launched a DEX while Poloniex went out and acquired one on Tron.

Bancor recently announced a 60,000 token airdrop at the end of November to help to provide liquidity to the network.

A lack of liquidity is one of the major problems that exchanges are facing. This coupled with interfaces that tend not to be user-friendly has people opting for the centralized ones.

There is also the issue of fiat currency. To convert it, one often has to use an exchange such as Coinbase since most governments have strict regulation regarding their currencies. Coinbase, and others, meet the requirements to handle fiat in a manner similar to a bank.

This leaves many exchanges with the option of focusing upon the crypto-to-crypto transactions. The challenge here is that many involved in cryptocurrency are still speculating. Since "hodling" is so strong, many wallets are seeing little activity. This presents a problem to exchanges since they require a great deal of trading to maintain liquidity.

A recent study showed that, in spite of Bitcoin's moves this year, 11.58 million BTC has not moved this year.

 

CryptoBridge epitomizes the risk that still exists with cryptocurrency. Since it focused a great deal on alt-coins, the tremendous bear market obliterated it.

Another factor to consider, which the company did cite, is the fact the regulatory environment is getting more difficult. Countries across the world seek to clamp down on cryptocurrency as it poses a threat to their banking system.

The final piece of the puzzle lies in the fact that the entire cryptocurrency market is still rather small. Estimates vary but most put the entire space at less than 100 million people. With so much competition, it is rather difficult to survive unless growth explodes.

Rumours are that CryptoBridge might reopen. It is hard to tell what is true since many asserted that this was a scam from the beginning.

Part of the process for the crypto world is to figure all this out and clean up the legitimate from the non-legit.

Just part of the growing pains a new industry has to endure.

[duncun007 3577]

crypto bridge was one of my favorites until they started asking for kyc because when they came out they promised they will never ask for kyc and now they changed their mind in order to get liquidity? thats sad.

[sdsonjoy50 886]

You are right, there are many Exchange sites like this, I can not predict what can happen in the end if this is going on, I have seen many blogs and YouTube videos discussing this topic.

[Castilian 69]

We are at the very beginning of the crypto revolution...this is like buying your very first 2400bps modem back in the days when internet was just starting to work for regular people

[Thekingcallme 1975]

We are still in the first part of the exciting movie Cryptocurrency
And there are still other parts and we will see the emergence of many platforms until you will be confused which one you will choose and for this you have to be careful in choosing the platform that you will work on.

[ultimateclub 392]

Decentralized is sometimes painful. For instance crypto bridge. I have identified not only crypto bridge, there are some dex who will leave the network without any prior notice. It's really sad that they didn't leave any deal or announcement to the depositors to withdraw their invests. 

[Cryptominded 704]

1 hour ago, ultimateclub said:

Decentralized is sometimes painful. For instance crypto bridge. I have identified not only crypto bridge, there are some dex who will leave the network without any prior notice. It's really sad that they didn't leave any deal or announcement to the depositors to withdraw their invests. 

I don't see how decentralization turned out to be their problem instead of the obvious fact that they lack liquidity. Of course, it's their fault, because starting an exchange - centralized or decentralized entails huge capital, part of which is meant to be channeled to provision of liquidity. 

Survival in an business requires diversification, so they ought to have diversified to be able to generate extra income through a number of ways like granting a percentage to customers for staking some coins, which they could in turn channel a portion to mining or other stable investments.

[lcm 172]

In the near future this type of exchanges will be popular because they offer plenty of advantages of privacy. People want to be free of centralized systems!

[Sumayya 493]

It was a true story, that cryptobridge is going out of service which came as a sad news to us all

[febriyana 934]

Decentralized exchanges is doing great until now. Their problem is using old pair where can only trading with crypto to crypto. If we see in centralized exchange they have pair with fiat. With fiat pair, that will make the trader feel safe and can make their portfolio can liquidated in short time. Don't worry that is not the end, hope some decentralized exchange have some inovation to bring more members, like adding airdrop.

[bliznec 22267]

Every business has its own donations and you can’t do without it. Also in the cryptocurrency business, weak points should disappear.

[Crypto123 0]

I have heard this before in one of the topics here in this forum, it really seems that it closed permanently and I don't know what the reason is and I don't know if users are allowed to withdraw their money no. But in fact, it is unfortunate news, and it is not the first. Several exchanges were closed in 2019.

[TasinHasan 421]

Crypto bridge was my fevorate exchange in past but after adding kyc verification i have withdraw all fund to other exchange.

now i don't care about this

[bentayebsalah 2280]

Fortunately I did not buy this DEX coin and it will be bad news for many who bought this coin and learned that it was given a choice in its decentralized system

[Syedbesharat 5423]

On 12/4/2019 at 12:16 AM, Amit01229 said:

In my personal experience decentralised exchange is best but for low volume traders not trade daily basis and also most secure our funds in control no need to deposit any exchange and Crypto bridge is good exchange and maximum POS based type token listed here also have good coin but need volume

Nice article but you have not pit the source of article .The forum rule is to add the source link in article .The Dex coin was good but i prefer top coins for trading and stored limited number of coins.Those who invested in it now are facing problem.

[Rickso 768]

On 12/3/2019 at 8:02 PM, milanista said:

News is emerging that the decentralized exchange (DEX), CryptoBridge, is ending operations. This announcement comes as a surprise to many. It also does not leave a great deal of time for depositors to remove their money.

 

what kind of decentralized exchange was if you are saying this? i mean why a dex exchange would say to their users to withdraw their money? i mean on dex exchange you own your private keys so there is no sense, if a dex exchange closes you still have your money in your wallet since dex are created for this, you always keep your money while using dex

Edited February 8, 2020 by Rickso
spelling mistake

[Amirul Islam 382]

On 12/4/2019 at 1:02 AM, milanista said:

News is emerging that the decentralized exchange (DEX), CryptoBridge, is ending operations. This announcement comes as a surprise to many. It also does not leave a great deal of time for depositors to remove their money.

 

 

The decentralized exchange landscape got a bit more crowded of late. In April, Binance launched a DEX while Poloniex went out and acquired one on Tron.

Bancor recently announced a 60,000 token airdrop at the end of November to help to provide liquidity to the network.

A lack of liquidity is one of the major problems that exchanges are facing. This coupled with interfaces that tend not to be user-friendly has people opting for the centralized ones.

There is also the issue of fiat currency. To convert it, one often has to use an exchange such as Coinbase since most governments have strict regulation regarding their currencies. Coinbase, and others, meet the requirements to handle fiat in a manner similar to a bank.

This leaves many exchanges with the option of focusing upon the crypto-to-crypto transactions. The challenge here is that many involved in cryptocurrency are still speculating. Since "hodling" is so strong, many wallets are seeing little activity. This presents a problem to exchanges since they require a great deal of trading to maintain liquidity.

A recent study showed that, in spite of Bitcoin's moves this year, 11.58 million BTC has not moved this year.

 

CryptoBridge epitomizes the risk that still exists with cryptocurrency. Since it focused a great deal on alt-coins, the tremendous bear market obliterated it.

Another factor to consider, which the company did cite, is the fact the regulatory environment is getting more difficult. Countries across the world seek to clamp down on cryptocurrency as it poses a threat to their banking system.

The final piece of the puzzle lies in the fact that the entire cryptocurrency market is still rather small. Estimates vary but most put the entire space at less than 100 million people. With so much competition, it is rather difficult to survive unless growth explodes.

Rumours are that CryptoBridge might reopen. It is hard to tell what is true since many asserted that this was a scam from the beginning.

Part of the process for the crypto world is to figure all this out and clean up the legitimate from the non-legit.

Just part of the growing pains a new industry has to endure.

Nowadays decentralised exchanger is more popular than others. Because there we can access our wallet. No other one can access it. Many exchangers already trying to move their platform into decentralised system.

[Rifrach 207]

Nonetheless, we were in the first part of the film Cryptocurrency interesting. They destroy their reputation and in addition to keeping their exchange.

[fuer44 1083]

in my opinion whether it's decentralized or centralized, the most important thing for exchangers is trading volume. if the trading volume is low, chances are the exchanger is rarely used and will eventually close their website as happened on this DEX.

[Captain Karim 0]

I think that decentralized exchange platforms are better than centralization, but unfortunately there is no liquidity and most of the decentralized platforms impose high fees.

[magd 5231]

Does this have anything to do with liquidity, or is it due to the decisions of the owners of huge companies? The decentralized markets were affected a little because of the negative atmosphere surrounding the economy around the world

[pablomarwan 3082]

Because it is really unfortunate to see a platform in a bankruptcy development. Everything that occurred in the midst of these crises and these developments in this volatile atmosphere came to me with undesirable results. Because it was not in everyone's interest. All of these projects seem to have been postponed and damaged until the conditions calm down, and they will recover

[Shaza Ahmad 1682]

Well, I want to point out an important point regarding decentralized exchange platforms, which is that we suffer from a significant lack of liquidity of decentralized exchange platforms.

[tienda 8776]

I have already heard about this news announcement, but my question is this Cryptobridge let their users for withdrawing their money? Because generally the majority of website exchange when they close they doors dont refund money.

[Amir Vao 341]

On 12/4/2019 at 1:02 AM, milanista said:

News is emerging that the decentralized exchange (DEX), CryptoBridge, is ending operations. This announcement comes as a surprise to many. It also does not leave a great deal of time for depositors to remove their money.

 

 

The decentralized exchange landscape got a bit more crowded of late. In April, Binance launched a DEX while Poloniex went out and acquired one on Tron.

Bancor recently announced a 60,000 token airdrop at the end of November to help to provide liquidity to the network.

A lack of liquidity is one of the major problems that exchanges are facing. This coupled with interfaces that tend not to be user-friendly has people opting for the centralized ones.

There is also the issue of fiat currency. To convert it, one often has to use an exchange such as Coinbase since most governments have strict regulation regarding their currencies. Coinbase, and others, meet the requirements to handle fiat in a manner similar to a bank.

This leaves many exchanges with the option of focusing upon the crypto-to-crypto transactions. The challenge here is that many involved in cryptocurrency are still speculating. Since "hodling" is so strong, many wallets are seeing little activity. This presents a problem to exchanges since they require a great deal of trading to maintain liquidity.

A recent study showed that, in spite of Bitcoin's moves this year, 11.58 million BTC has not moved this year.

 

CryptoBridge epitomizes the risk that still exists with cryptocurrency. Since it focused a great deal on alt-coins, the tremendous bear market obliterated it.

Another factor to consider, which the company did cite, is the fact the regulatory environment is getting more difficult. Countries across the world seek to clamp down on cryptocurrency as it poses a threat to their banking system.

The final piece of the puzzle lies in the fact that the entire cryptocurrency market is still rather small. Estimates vary but most put the entire space at less than 100 million people. With so much competition, it is rather difficult to survive unless growth explodes.

Rumours are that CryptoBridge might reopen. It is hard to tell what is true since many asserted that this was a scam from the beginning.

Part of the process for the crypto world is to figure all this out and clean up the legitimate from the non-legit.

Just part of the growing pains a new industry has to endure.

After my joining on the market I heard many time about this exchanger. But I don't know why they shutdown their business at this time when every platform moving to decentralised.