Today we learned that CoinExchange, the centralised exchange where most of our XBY trading has occurred over the last few months, is closing up shop.
First off, we’re advising everyone to remove all their assets from this exchange as soon as possible (before they close for good). Although they appear to be proceeding correctly (which like Nova is good to see), please remember what happened with TradeSatoshi and CCEX. They stopped withdrawals ahead of schedule, leaving many community members to suffer losses.
Secondly, although CoinExchange is giving their customers ample time to react to the news, they reflect the unfortunate reality of dealing with centralised exchanges (especially the smaller ones).
At XTRABYTES, we’ve been promoting the use of decentralised exchanges since the start of this project. We began intensifying this message after creating our own gateway on the WAVES decentralised exchange. We have long understood the risks associated with centralised exchanges (and dealing with smaller ones intensifies these risks even more). There is a very long list of dangerous scenarios for most exchanges. The larger exchanges are less susceptible to these scenarios, yet even they remain at risk.
The crypto and blockchain industry continues to evolve and mature. Retail investors are becoming more cautious and institutional investors are not yet flocking to this emerging market. This has created an environment where exchanges are competing with each other for the same traders. As a result, smaller exchanges find it difficult to keep their doors open.
In our quest to find new exchanges, we have personally witnessed the tactics exchanges use to appear attractive to both traders and projects. The use of market makers and wash trading makes it difficult for anyone to rely on the numbers presented by these exchanges. Unfortunately those tactics aren’t producing any income. Ultimately, exchanges are forced to close because the cost of operating outpaces their ability to generate income.
That being said, let’s turn our attention to WAVES for a moment and recognize some facts.
- Community members have been buying and selling XBY and XFUEL successfully, without any losses from theft or hacking for several months now. And since Waves never controls your coins, there is no reason to think that will ever happen.
- Waves is a stable platform that works as well as most centralised exchanges. The only minor issue we’ve experienced since we ironed out the early issues with or own gateway, was during the recent update to the BTC gateway (which is again fully functional).
- Waves offers fiat in/out transfers.
- Waves has gateways for several major coins, including BTC, ETH and LTC
- While there is a minimal market for our coins on Waves, community members can choose to trade there and help improve liquidity. In the end, this will increase trading volume, and also result in CMC recognizing Waves as a place to buy and sell XBY (and even XFUEL). Therefore it’s a very good solution already available.
As we have stated several times before, we are convinced that decentralised exchanges are the way forward. We will also push harder on existing plans to get set up on other DEX’s to offer additional options.
Nonetheless, we will continue looking for suitable centralised exchanges to list us. However, given our history with exchanges, we will be very selective in the exchanges we choose to list on. Thus, it’s probably wise not to expect any additional listings until we get to patent pending (at the very least).
If you need any assistance with Waves, simply ask. Also note that we will be re-issuing and upgrading our guides and assets to help you set up with Waves. We want everyone to keep trading XBY and XFUEL with full confidence in Waves.
The XTRABYTES Team