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Not necessarily -- you can create a profitable exchange by having a standard taker fee or commission. That's how exchanges have made money since the dawn of tim
by bmmayer1 4y ago
Not necessarily -- you can create a profitable exchange by having a standard taker fee or commission. That's how exchanges have made money since the dawn of time and there's nothing wrong with it.
The issue with FTX etc is that they didn't segregate their revenue model from their customer accounts. That's a no-no not only from a legal perspective but from a risk management perspective.
- cykros 4y agoIndeed. There's a reason FTX had a spread charged of 0.1% while more legitimate (hopefully) operations such as Coinbase and Kraken charge around 10x as much. If they're not making their money there, where exactly are they taking...err, making it from?