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Running a reserve ratio < 1 is a convenient way of funding advertising to get more people to use your exchange. So the question you should be asking is: if the
by fshbbdssbbgdd 4y ago
Running a reserve ratio < 1 is a convenient way of funding advertising to get more people to use your exchange.
So the question you should be asking is: if there is a solvent crypto exchange, how would I ever find out about it?
- kristjansson 4y agoPresumably transaction fees, market data fees, etc. would provide enough revenue to fund advertisements?
- fshbbdssbbgdd 4y agoAdvertising is a market, you see ads for whoever is willing to bid the highest. It seems like Coinbase had to raise money to get big. FTX arrived to the scene later. It would be hard to compete by bootstrapping from organic growth.
- kristjansson 4y agoTaking outside money doesn't preclude solvency