Cryptocurrency exchanges plays a great role on how cryptocurrency related activities has so far faired in recent years of the introduction of cryptocurrency investment/Trading in the world.
However, its lapses had also led to reduction in the impact that it made in some years. Some of the ways through which Cryptocurrency Exchanges could help in increasing the face value of cryptocurrencies are:
1) Ensuring that their security is not breached: One of the reasons why the approval of bitcoin ETFs had suffered failures irrespective of how structured the application was, is the issue of security.
Coincheck a major cryptocurrency exchange in Asia suffered security breach which led to loss of Nem cryptocurrency of its users worth more than $500 million early this year when it was revealed. That led to the lose in the gains that Nem made in previous months since the Nem team announced that they are given up in tracing the hackers in March.
2) Listing Only cryptocurrencies with legitimate projects or mining programs: The rise in knowledge of cryptocurrency has created tools that could enable someone with no programming knowledge to create a virtual coin within few minutes.
This has led to the reduction of the well known open source programmes for major cryptocurrencies. This has also made more exchanges to come up with some, with no finance to recruit personnels that are crypto pundits which could help in listing of this coins.
That has attracted many dead coins in the market since the exchanges could have rejected them even when they are voted for. This is because some bad projects induce participants with free tokens once their Token/Coin is verified, Last Month ZyCrypto Reported that Cryptocurrencies Death Toll is Now at 800 which Means that Almost 1000 Coins In The Maket Have No working Purpose.
3) Preventing internal manipulation: Recent researches had shown that some cryptocurrency that has a high percentage trading volume of a given cryptocurrency or crypto tokens, could influence its price with the staff members and major investors.
This reports are not good for the market since it breeds distrust among investors. From this three reasons, we could deduce that the face value of cryptocurrencies could be enhanced with proper conduct of cryptocurrency exchanges.
The post How Exchanges could be used to improve the face value of Cryptocurrencies appeared first on ZyCrypto.