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He's kinda right. Many exchanges use other exchanges to provide liquidity on their exchange, either directly or through users who perform arbitrage. That's how
by bouncycastle 7y ago
He's kinda right. Many exchanges use other exchanges to provide liquidity on their exchange, either directly or through users who perform arbitrage. That's how bitfinex started for example, they partnered with Bistamp and used their book to fill in theirs. Nowadays, it can happen with DEX'es on the protocol level too - eg, Kyber Network taps into the liquidity provided by Uniswap (hey, keyber is a liquidity network after all. Disclosure: don't own any Kyber tokens)
- jstanley 7y agoThe claim under dispute is: > the exchange effectively has a position in the market too, unlike traditional exchanges like the NYSE. They have to buy bitcoin from other exchanges Exchanges don't have to buy bitcoin from other exchanges, and exchanges don't necessarily have a position in the market.