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Damaged Reputation: Can Cryptocurrency Exchanges Recover from Past Failures?

The cryptocurrency industry is, by all accounts, in its infancy. The first every cryptocurrency, Bitcoin, just recently celebrated its tenth birthday. In as many years, the coin has had a massive boom and bust cycle, and a host of other cryptocurrencies have sprung up in the market space.

As with other industries, when truly innovative creations take shape, they often appropriate existing solutions to maintain functionality. Cryptocurrencies were no different, using traditional equities and bond trading platforms to allow investors to buy and sell. However, as the market has matured, the glaring problems facing cryptocurrency exchanges are become evident, highlighting the need for industry-specific solutions. 

The ugly past

The cryptocurrency industry has already garnered a reputation for failure. In fact, 2018 was a record-breaking year for hacking on exchanges. After nearly a decade since the birth of Bitcoin, the problems that exchanges face have only continued to increase.

And hacks aren’t the only problem that consumers see in the cryptocurrency space. Consider the case of DX Exchange, a digital asset exchange. Designed to allow investors to tokenize equities like Apple or Google stock, the company saw rapid growth early on. However, the technology on the exchange was shoddy, and the company eventually lost trust with its customers, losing major market share. Today the exchange is running flawlessly, however the damage is already done.

For those that appropriate non-crypto sites to manage their exchanges, trading can sometimes be more stable. But even in those solutions, the fees charged can be far more than what the market can bear, and will often leave crypto-investors feeling stung.

The need in the marketplace is for security, stability, and technical control. These solutions are necessary if the cryptocurrency industry is to move forward in adoption. Whether viewed as assets or currencies, exchanges and transaction processors need crypto-specific solutions.

Is there hope?

However, as the market continues to mature, there are a few points of light amidst all the chaos. Some exchanges have offered crypto-specific solutions that have begun to gain ascendency among traders.

Take, for example, Spotware. The company offers crypto-specific trading platforms that are catered to cryptocurrency companies and designed to streamline the trading process at every level. In existence for nearly ten years, the company’s solutions are growing in popularity because of their scarcity.

Spotware offers a plug-and-play trading solution for those wishing to create their own cryptocurrency exchange. Called cXchange, the solution allows clients to utilize the internal exchange capabilities of Spotware to create proprietary digital exchanges.

Companies wishing to build exchanges are able to effectively offer clients safe, rapid trade capabilities without the massive costs associated with building a free-standing crypto exchange. Additionally, the service offers a host of tailoring solutions for companies wishing to brand themselves in various ways.

Spotware’s solution is technically advanced and provides a system that allows cryptocurrency exchanges to get off the ground and running rapidly, and for extremely reasonable rates. By providing technical control and low barrier of entry, the company has created a

Others?

Spotware isn’t the only solution, to be sure. Others are moving into the space as well. The cryptocurrency market appears, by all accounts to be on the mend, after a terrible 2018. Bitcoin has risen to more than double where it started the year, and investors seem to be more willing to consider cryptocurrency as a viable investment.

Regardless, with a growing market, a growing need is exploding as well. As the market continues to mature, solutions that are crypto-specific and technically viable will continue to be a major need. For growth to continue, and adoption to grow, the scams must stop and real businesses like Spotware must come online.

Adrian Mathieu
About author

Adrian is a cryptocurrency trader and writer since 2014. He follows closely coins such as Bitcoin, Ethereum and NEO to little known ICOs, constantly analyzing crypto markets in order to stay informed. Email Adrian directly at [email protected]
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