Monopolists continue to grow in the segment of crypto-exchanges


5 Important Things Crypto Exchanges DON’T Want You To Know

Monopolists continue to grow in the segment of crypto-exchanges

Monopolists continue to grow in the segment of crypto-exchanges

  • CryptoCompare analytical company has conducted a comparative analysis of crypto exchanges.

  • Top exchanges have significantly increased their market share over the past 9 months.

  • Security concerns continue to plague the entire crypto industry.

International consortium of news organizations developing transparency standards.

The largest and most reputable cryptocurrency exchanges are increasingly gaining a place in the sun, pushing out weaker rivals from the market.

Monopolists continue to grow in the segment of crypto-exchanges

Top-ranked marketplaces such as Binance and Coinbase continue to push their second-rate and smaller competitors like Coinhub or Bitexbook out of the market, according to a recent study by analyst firm CryptoCompare..

Redistribution of the crypto exchange market

As experts found out, over the past 9 months, top cryptocurrency exchanges have significantly increased their market share. Such sites traditionally include exchanges that offer traders a lower level of risk based on characteristics such as security, insurance of funds and quality of service..

CryptoCompare analysts commented that the widening gap between the two categories of exchanges could be a sign that the market is becoming more mature. In addition, this may serve as an indication of attempts by a number of exchanges to improve the quality of services offered to customers..

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Monopolists continue to grow in the segment of crypto-exchanges

CryptoCompare experts themselves have awarded the highest AA rating to only two exchanges – Gemini and Coinbase. Down a notch, with score A, they put Binance, Kraken and Bitifinex.

In the last quarter of 2019, according to a study by CryptoCompare, out of 165 crypto exchanges, 68 could be classified as top ones. At that time, they formed 32% of the total global turnover. In the 2nd quarter of 2020, this figure has already grown to 40%, and at the end of June it was 46%.

Meanwhile, second-tier exchanges with a rating below B (C-E), which according to CryptoCompare are characterized by higher risk for traders, are steadily losing positions, losing their market share. If in the 4th quarter of 2019 they accounted for 68% of global trade volumes, then in June this figure was 54%.

Rest only in our dreams

However, CryptoCompare warns that it is too early for even the top crypto-exchanges to rest on their laurels, since the industry as a whole is still characterized by problems with security and a low level of protection against risks..

So, only 15% of exchanges claim to store at least 95% of all client funds in cold wallets, which potentially significantly increases protection against hacker attacks and cyber attacks. Also, only 5% of crypto-exchanges offer their clients one or another type of insurance..

In addition, the study found that about 38% of exchanges, when carrying out more than 25% of transactions, “interact with structures characterized by a high level of risk”, such as representatives of the gambling business or sellers from dark markets. 44% of exchanges implement substandard or inadequate procedures as part of the Know Your Customer (KYC) regulatory requirement.

Monopolists continue to grow in the segment of crypto-exchanges

The breakdown by country showed that the lowest level of risk is characteristic of crypto exchanges in Japan, the USA, Australia and South Korea. Russia is on the lowest line of this rating.


All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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