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Why are so many companies investing in cryptocurrency trading platforms?

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Cryptocurrencies have the reputation of often being opaque, difficult to use, and not always user-friendly. That reputation has a lot to do with the early days of cryptocurrency when the only way to participate required specialized knowledge and a familiarity with the often-unwelcoming cryptocurrency scene. Now, however, that reputation is entirely undeserved. In fact, new trading platforms seem to be springing up almost daily. If cryptocurrency really is as difficult as its reputation suggests, what can explain this massive investment into trading platforms?

Speculation drives growth

One of the most obvious reasons is the growth of speculation. Simply put, there’s a lot of money to be made in crypto, and everyone wants a slice of the pie. Let’s take a look at Bitcoin, arguably the most popular cryptocurrency. From its humble beginnings of being nearly free, the price skyrocketed to nearly $20000 two years ago, before dropping down to today’s level. But this rise, from almost valueless to incredibly valuable, has attracted many people, who are willing to take a bit of risk on making a quick buck.

But, in order to support the amount of speculation, Bitcoin can’t remain in internet forums and chat servers. Consumers, especially private individuals who may not have the same technical know-how as the early Bitcoin pioneers, want ease of use and reliability overall. The first exchanges weren’t much of an improvement over the word-of-mouth methods of cryptocurrency growth, but today’s exchanges often comply with a whole host of regulations and checks to keep consumers safe. Trading platforms, seeking to make crypto trading as easy and pain-free as possible, follow this trend.

Network effects reign supreme

Another reason for the explosive growth of trading platforms is the race to establish themselves before the more traditional banks, and financial services providers take hold. In other words, today’s trading platforms are looking to harness network effects and build their client base before the inevitable centralization of services. Crypto startups often don’t have the same financing and reputation carried by more traditional finance organizations. Instead, they need to build it.

Investors often take a firm’s reputation and brand a shorthand for the trustworthiness of their investment, and many companies, big and small, are looking to leverage those factors to be successful. Network effects, caused by a brand’s popularity, is one of the drivers of online service centralization. Facebook and Google are good examples of the effect. Everyone uses them, because, well, everyone else uses them too. And many companies are aiming to replicate that for their own platforms. After all, it’s no small thing to be the Facebook of crypto – it may allow a company to compete with traditional finance, the same way modern tech companies disrupted the old guard like IBM, Xerox, and GE.

Institutional and retail investors looking for new opportunities

So far, not many major financial businesses, like banks and other institutions, have gone into cryptocurrencies, instead of taking a wait and see approach. Even the ones that have, such as Fidelity Investments and Goldman Sachs, have so far avoided making too big of a splash, making room for smaller, more nimble organs to fill the space. And, even where they have entered, traditional finance has focused on launching platforms and tools for institutional investors, instead of retail customers.

This lack of focus from traditional finance on retail investors means that innovative, disruptive startups have a real shot of establishing themselves, and keeping a loyal customer base when and if the big names get into the game. They also have the advantage of being able to quickly reposition and adjust to market changes, something a traditional finance organization has historically had trouble doing.

Even institutional clients aren’t all satisfied with traditional finance offerings. Companies such as Circle, Coinbase, and Bittrex have all launched institutional trading platforms, are expanding their current ones to accommodate the growing trade volume in cryptocurrency. Despite the current lethargy of the market, firms such as Huibo, specializing in derivative trading platforms, have reported volumes of up to 20 billion USD. That amount shows that not only is crypto trading growing, but it’s also growing quickly.

Why the investment?

All of this boils down to three main reasons, so many firms and companies are investing in crypto trading platforms. First, everyone wants to participate in the current crypto craze, and trading volumes reflect that fact. Second, platforms are seeking to establish their own brand and reputation before better established, traditional finance firms throw their weight into the ring. And finally, the demand for trading platforms of all types targeting all kinds of investors is high, and the market is doing its best to meet it. Of course, many of these platforms will fail to reach the sustained, consistent volume turnover necessary to survive – but those that do are almost guaranteed success in the future.

Source: www.monfex.com

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Ethereum Price Outlook as the DXY Index Crash Continues

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Cryptocurrency prices remained in an upbeat tone on Thursday as the US dollar index continued its bearish move. Bitcoin, the biggest cryptocurrency in the world, rose to $23,165, the highest level in months. Similarly, Ethereum has risen by more than 4% in the past 24 hours while BNB Coin and XRP surged to $307 and $0.41, respectively. 

US dollar index retreats

Cryptocurrencies have an inverse relationship with the US dollar index. For example, the DXY, which looks at the performance of the greenback vs other currencies, soared to a 20-year high of $115 in 2022. As that happened, cryptocurrencies like Bitcoin plunged during the year.

The foundation of this relationship is the Federal Reserve. In most periods, the US dollar index tends to rise when the Fed is extremely hawkish and vice versa. And it was extremely hawkish in 2022 as it hiked interest rates by more than 400 basis points. 

Therefore, while the Fed has remained hawkish recently, the US dollar has dropped because of what the data is saying. Data published recently showed that America’s inflation is easing. The closely watched consumer price index dropped to 6.5% in December while core inflation fell to 5.7%. 

At the same time, other parts of the economy are showing that the American economy is indeed recoiling. Retail sales dropped sharply in December while many…

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XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more. One of the ways to have a successful…

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Campden Wealth Partners with GDA Group to Enter Digital Asset Markets

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Blockchain conglomerate GDA Group joins as Campden Wealth’s newest Corporate Partner for 2021. Based in Toronto, GDA group provides access to all verticals of the crypto capital markets to institutions and private investors. The two institutions once operated on different verticals, so the partnership indicates a new era of portfolio allocation and asset diversification. Digital assets, including bitcoin, are becoming a vital component of modern investment strategies. GDA Group provides multiple avenues for digital asset exposure, including trading services through their institutional trading desk Secure Digital Markets, including non-recourse lending up to $100M through GDA Lending, and private placements through their capital markets arm GDA Capital

“Institutions have spent a decade on the sidelines, evaluating the risks of this burgeoning sector. Now, in less than 6 months we have seen billions in institutional and private capital enter the space,”  says James Godfrey, FX and International Banking Advisor to GDA Group. “Our relationship with Campden will illustrate the maturation of this industry and where we are headed next. New stakeholders will need experience, resources and insights to navigate this new market and evaluate upcoming opportunities.”

 “The Campden Community is constantly balancing the needs of wealth creation for the future, with wealth preservation…

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