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These are exciting and worrying times for the cryptocurrency industry. Hundreds of new goods are introduced to the market every month. This makes it difficult for investors to determine which projects are potentially useful. The CEO of Dunamu, Lee Sir-goo, is convinced that exchanges must take the situation in this regard.
Separating wheat from straw
There are cryptocurrencies and digital resources. Several thousand projects are all competing for traction. It has become very difficult for investors to discern whether the projects are scammers or perfectly legitimate. There is a growing need for intervention in this sense. Something must change before more people lose money because of nefarious projects.
Finding a solution to tackle this problem is very difficult. For exchanges, a screening process is more than justified. Rather than listing coins and assets, willy-nilly, the implementation of a review process will improve the industry as a whole. Not all platforms take these measures at this time. In fact, some exchanges use questionable methods to gain competitive advantage in this day and age.
Lee Sir-goo, CEO of Upbit's parent company, Dunamu, has a clear vision in this regard. He says that any responsible exchange can improve the selection process. Stock exchanges maintain very strict rules also in this sense. It is normal that cryptocurrency trading platforms implement similar measures over time
Will exchanges take precautions?
Although the concept outlined by Sir-goo makes sense, it remains up to the trading platforms to introduce such changes. Simply relying on the teams paying the quotation rates will not make the sector more attractive to investors. Especially now that cryptocurrency is gaining traction among institutional investors, a clearly defined system becomes even more important.
Lee states:
Stock exchanges such as Kosdaq and Nasdaq all have strict guidelines to determine what actions the company is managing to protect investors. The same applies to the cryptocurrency exchanges.
Today there are more than 20,000 cryptographic coins in existence all over the world. It is a way to list any currency until an entry fee is paid. But I think the role of a cryptographic exchange is to research and identify what is a good business and token blockchain, with the aim of helping users find the best investment opportunities.
Trade in support of Fiat transactions must play an exemplary role in this regard. The upbit is one of those platforms that offer such trading options. Their main priority is to prevent money laundering and other criminal activities. This also means that it may be necessary to give up quoting profitable cryptocurrencies in terms of commercial revenue. However, the company gives priority to protecting its users from anything else.
Accurate control of new resources can also help in regulatory efforts. Governments are still wary of the cryptocurrency trade, for a wide range of reasons. A simplified system for exchanging and listing resources can make a world of difference in this sense. Now that normative discussions are at the center of attention, a proactive approach to trade appears justified.
Do you think exchanges should be more important than the coins they list? Let us know in the comments below .
Images kindly granted by Shutterstock.
