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Dexes destroyed the long-tail crypto exchange. Consolidation and shut downs are coming. Regulation is certainly an issue but the truth is Bittrex doesn’t really

Dexes destroyed the long-tail crypto exchange. Consolidation and shut downs are coming. Regulation is certainly an issue but the truth is Bittrex doesn’t really need to exist anymore. Cross-chain swaps are possible with wrapped assets, atomic swaps, and operations like FixedFloat. End of an era but the market has spoken. Whatever benefits a centralized exchange provides are better with deeper liquidity and larger exchanges like Coinbase and Binance. I also believe Gemini is on its last legs. The SEC combined with anemic volumes, GUSD went nowhere, Nifty Gateway market collapsed, Gemini Earn is in bankruptcy. Winklevoss will just buy and hold BTC from now on.

orangepurple 4y ago
Coinbase and Binance are firmly under the microscope of the US Department of Justice (DOJ)
yieldcrv 4y ago
End of a crappy era, in the US The extortion racket bucket shops cant go fast enough! Long live DEX’s, liquidity pool technology has been an incredible boon to the crypto space, shifting dynamics away from exchanges directly to the project issuers and community.
- gear54rus 4y ago
  yeah except now you will exchange your fiat into crypto with some shady guy instead of a somewhat-trustable big entity with reputation.
  - alphanullmeric 4y ago
    The code is open source, your only risks are bugs, exploits and the government.
    - pawelduda 4y ago
      Bugs, exploits, and "only problems" in the same sentence are what makes it funny, especially when your money is on the line and the most popular smart contract lang is JavaScript for blockchain edition I mean it certainly does the job but I'd die from stress if I would risk releasing a bug that could wipe hundreds of millions of users' money. I respect people who are good enough at Solidity to be reasonably confident.
    - Atlas22 4y ago
      By shady guy, the commenter is likey referring to peer-to-peer marketplace swapping of fiat and crypto, not DEXes. DEXes cannot offer fiat currencies since it is inherently centralized. AFAIK, the only options to exchange fiat are centralized exchanges and peer-to-peer marketplaces, both of which rely on extensive trust in a very small number of people, and are not open-source or publicly-auditable.
    - skee8383 4y ago
      Without any fiat on-ramp crypto is worthless. its value is always measured by how much fiat it can be sold for. without that it has no value. what are you gonna do, go mail a stranger cash for coins? send him gold bars for coins? lol. this crap is OVER. please wake up! or dont, i don't really care..
      - alphanullmeric 4y ago
        Glad we agree the IRS shouldn’t be taxing something that has no value.
      - gear54rus 4y ago
        Stop raging, your argument is invalid simply because I can exchange crypto for goods and services and you don't even see this simple problem
  - yieldcrv 4y ago
    there are, and will be, other fiat onramps Even Paypal and Cashapp are trusted crypto exchanges now. The crypto you receive there can be withdrawn and access the entire crypto economy.
tsimionescu 4y ago
Too bad DEXs can't actually get money into the ecosystem, they're only about swapping one funny token for another.
- monero-xmr 4y ago
  Buy USDC on Coinbase, withdraw to personal wallet, now you can use on dex. Or that’s what I do. I pay all my taxes and I pay a lot of them.
  - lcnPylGDnU4H9OF 4y ago
    This works but it's also specifically not using the dex (decentralized exchange, for anyone confused) to exchange fiat / crypto in either direction. Coinbase is doing that.
    - monero-xmr 4y ago
      Yes but the benefits of dexes, specifically the ability to earn fees by being a liquidity provider (LP) in an automatic market maker pool (AMM) are very useful. You can maintain your exposure to assets and not need to maintain a trading bot with all of its risks and still earn fees.
    - saurik 4y ago
      But that relegates the centralized exchange into the position of being nothing more than a "fiat on-ramp", and potentially literally nothing more than a trivial wrapper around Circle (in the case of Coinbase and USDC), which effectively undermines their business model of operating the whole exchange apparatus. (Hell: does Coinbase even make any money at all if you deposit USD and withdraw USDC? I think they don't have deposit fees in general, do the USD<>USDC 1:1, and then offer free withdrawals on USDC due to some fancy new "gasless" withdrawal mechanism Circle came up with.) Regardless, the point being made in the comment upthread wasn't "you will never need a centralized entity ever again": that was a total strawman. It wasn't even that you wouldn't want any centralized exchanges! It was merely that the "long tail" of random exchanges who specialize in listing more random tokens is effectively dead as who would bother with all that trouble to navigate all the red tape--particularly to operate in the United States--to support and vet these tokens when every token ever can be made available on a decentralized exchange. You might thereby still want a handful of the largest exchanges... but do you really need Bittrex enough for them to make enough money to put much effort into existing?
WFHRenaissance 4y ago
I guess the issue I foresee is that many perp DEXes aren't available in the USA. Gemini is opening a perp CEX soon I think. May be the last bastion for smaller CEXes: having enough regulatory favorability/connections to copy DeFi until the music stops.
- saurik 4y ago
  A DEX wouldn't fundamentally exist in any specific regulatory environment... how would one somehow not be available in the US?
  - quanticle 4y ago
    It would be unavailable in the sense that US entities would be legally prohibited from transacting with it, in the same way that US entities are prohibited from transacting with Binance (and, to the extent that they're flouting this prohibition, they're getting in trouble for it).
detrites 4y ago
*in the US Bittrex Global continues, along with the other 600+ centralised exchanges [0] unfortunately excluded in American-centric reality. [0] https://blockspot.io/exchange/ https://blockspot.io/exchange/
babyshake 4y ago
Would you expect they will rug pull GUSD? I assume this, like with USDC, would be seriously illegal, but it also wouldn't surprise me if they had some ToS provisions somewhere waiving their obligation to redeem GUSD for USD.

orangepurple 4y ago

Coinbase and Binance are firmly under the microscope of the US Department of Justice (DOJ)

yieldcrv 4y ago

End of a crappy era, in the US The extortion racket bucket shops cant go fast enough! Long live DEX’s, liquidity pool technology has been an incredible boon to the crypto space, shifting dynamics away from exchanges directly to the project issuers and community.

gear54rus 4y ago
yeah except now you will exchange your fiat into crypto with some shady guy instead of a somewhat-trustable big entity with reputation.
- alphanullmeric 4y ago
  The code is open source, your only risks are bugs, exploits and the government.
  - pawelduda 4y ago
    Bugs, exploits, and "only problems" in the same sentence are what makes it funny, especially when your money is on the line and the most popular smart contract lang is JavaScript for blockchain edition I mean it certainly does the job but I'd die from stress if I would risk releasing a bug that could wipe hundreds of millions of users' money. I respect people who are good enough at Solidity to be reasonably confident.
  - Atlas22 4y ago
    By shady guy, the commenter is likey referring to peer-to-peer marketplace swapping of fiat and crypto, not DEXes. DEXes cannot offer fiat currencies since it is inherently centralized. AFAIK, the only options to exchange fiat are centralized exchanges and peer-to-peer marketplaces, both of which rely on extensive trust in a very small number of people, and are not open-source or publicly-auditable.
  - skee8383 4y ago
    Without any fiat on-ramp crypto is worthless. its value is always measured by how much fiat it can be sold for. without that it has no value. what are you gonna do, go mail a stranger cash for coins? send him gold bars for coins? lol. this crap is OVER. please wake up! or dont, i don't really care..
    - alphanullmeric 4y ago
      Glad we agree the IRS shouldn’t be taxing something that has no value.
    - gear54rus 4y ago
      Stop raging, your argument is invalid simply because I can exchange crypto for goods and services and you don't even see this simple problem
- yieldcrv 4y ago
  there are, and will be, other fiat onramps Even Paypal and Cashapp are trusted crypto exchanges now. The crypto you receive there can be withdrawn and access the entire crypto economy.

tsimionescu 4y ago

Too bad DEXs can't actually get money into the ecosystem, they're only about swapping one funny token for another.

monero-xmr 4y ago
Buy USDC on Coinbase, withdraw to personal wallet, now you can use on dex. Or that’s what I do. I pay all my taxes and I pay a lot of them.
- lcnPylGDnU4H9OF 4y ago
  This works but it's also specifically not using the dex (decentralized exchange, for anyone confused) to exchange fiat / crypto in either direction. Coinbase is doing that.
  - monero-xmr 4y ago
    Yes but the benefits of dexes, specifically the ability to earn fees by being a liquidity provider (LP) in an automatic market maker pool (AMM) are very useful. You can maintain your exposure to assets and not need to maintain a trading bot with all of its risks and still earn fees.
  - saurik 4y ago
    But that relegates the centralized exchange into the position of being nothing more than a "fiat on-ramp", and potentially literally nothing more than a trivial wrapper around Circle (in the case of Coinbase and USDC), which effectively undermines their business model of operating the whole exchange apparatus. (Hell: does Coinbase even make any money at all if you deposit USD and withdraw USDC? I think they don't have deposit fees in general, do the USD<>USDC 1:1, and then offer free withdrawals on USDC due to some fancy new "gasless" withdrawal mechanism Circle came up with.) Regardless, the point being made in the comment upthread wasn't "you will never need a centralized entity ever again": that was a total strawman. It wasn't even that you wouldn't want any centralized exchanges! It was merely that the "long tail" of random exchanges who specialize in listing more random tokens is effectively dead as who would bother with all that trouble to navigate all the red tape--particularly to operate in the United States--to support and vet these tokens when every token ever can be made available on a decentralized exchange. You might thereby still want a handful of the largest exchanges... but do you really need Bittrex enough for them to make enough money to put much effort into existing?

WFHRenaissance 4y ago

I guess the issue I foresee is that many perp DEXes aren't available in the USA. Gemini is opening a perp CEX soon I think. May be the last bastion for smaller CEXes: having enough regulatory favorability/connections to copy DeFi until the music stops.

saurik 4y ago
A DEX wouldn't fundamentally exist in any specific regulatory environment... how would one somehow not be available in the US?
- quanticle 4y ago
  It would be unavailable in the sense that US entities would be legally prohibited from transacting with it, in the same way that US entities are prohibited from transacting with Binance (and, to the extent that they're flouting this prohibition, they're getting in trouble for it).

detrites 4y ago

*in the US Bittrex Global continues, along with the other 600+ centralised exchanges [0] unfortunately excluded in American-centric reality. [0] https://blockspot.io/exchange/ https://blockspot.io/exchange/

babyshake 4y ago

Would you expect they will rug pull GUSD? I assume this, like with USDC, would be seriously illegal, but it also wouldn't surprise me if they had some ToS provisions somewhere waiving their obligation to redeem GUSD for USD.