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
, 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

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

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


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.

The post Damaged Reputation: Can Cryptocurrency Exchanges Recover from Past Failures? appeared first on Ethereum World News.

Suggested Posts