Confrontation between the cryptocommunity and exchanges

Gloomy moods

It seems that the blockchain market and the cryptocurrency are developing so rapidly that some institutions no longer sustain such a race.At the same time, the whole cryptocommunity is in tension.Every news about the closing of any project shakes the community.It can be seen that the cryptocommunity has a pessimistic mood.More precisely, we can put it like this:people believe in blockchain, but don’t believe in existing market players.

Domino principle

Mt.Gox and BTC-e so shocked the community, that when Poloniex temporarily closed website, people thought it would be anotherscam. And these are not just words, it is important that users react to certain actions of centralized exchanges.It is logical that at the first opportunity users will withdraw money from the centralized exchange of the submitting doubt. In addition, since centralized exchanges hold tokens, they can dispose of them without user participation.For example, Coinbase after hardfork took to itself tokens Bitcoin Cash, although it was to distribute them among users.Such actions are considered illegal, this only strengthens the negative characteristics of the exchange.So the institution of centralized exchanges can collapse by itself at the expense of users’ distrust.Centralized exchanges understand that their time is coming to an end, so in every way they interfere with any user activities. For example, Poloniex introduced a ban on collective claims in his own terms.All this suggests that it is not safe to use the centralized exchanges now.

Incompatible with law

The institution of the illegal centralized exchanges is outdated, because its principles don’t fit into the modern legal framework.It can be seen that the cryptocommunity doesn’t trust the centralized exchanges.And this is correct, because unlicensed centralized exchanges with lack of verification can be closed at any time.

People are afraid to keep their tokens in centralized exchanges, because any exchange can close at any time or block the user’s account.Therefore, advanced users follow several rules that only complicate their mission in cryptocurrencies.Users store their tokens on different exchanges and operate in their accounts carefully to avoid the ban.This greatly complicates user actions in relation to the cryptocurrency.And the community understands that it is necessary to look for new ways to access tokens.

Unnecessary intermediaries

The community and the level of technological development are ready for the appearance of new players in the market, which stay out from the closing of exchanges and the storage of fiat money in centralized portfolio. There are many peer-to-peer decentralized exchanges that allow you to buy and sell cryptocurrency without intermediaries. P2P exchanges have a number of advantages unlike centralized exchanges. Responsible exchange platforms are licensed in certain territories and they have a user verification for performing the functions of the Anti-Money Laundering. This means that platforms can’t assign themselves to users’ currency and can’t suddenly close, because they haven’t problems with the law.

Insufficiently complete

P2P decentralized exchangeare excellent solutions, so why does the community not use them fully?Already existing platforms have a number of flaws. First, in such decentralized exchanges, you can buy or sell only Bitcoin. A significant problem is also unfriendly technical support.Finally, the actions in the exchanges take a long timeand require access to a PC, because they have an uncomfortable interface.

Therefore, we are developing global P2P cryptocurrency exchange platform Qvolta, which supports Ethereum and Bitcoin at the same time. Our platform has a mobile version for iOS and Android, so users can convert fiat to tokens and vice versa anywhere in a couple of minutes.We believe that this will be an important step for the cryptocommunity, and problems with the theft of tokens and the closing of exchanges will go down in the past.

Originally published at medium.com on August 8, 2017.

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