The crypto industry has yet to evolve from exchanges which are nothing more than digital banks in reality. A couple are taking bold moves to slash their fees but how many others will follow and how will it affect the wider crypto industry.
Crypto Exchanges: Banks in Disguise
True financial decentralization should consist of direct peer to peer transactions and more decentralized exchanges (DEXs), yet still centralized exchanges reap the profits like their banking counterparts.
Over the past year or two centralized trading platforms such as Coinbase and Binance made millions. Profits for Binance are easy to estimate considering the exchange burns 20% of its profits every quarter. The last time this happened was in October this year when 2 million BNB went up in smoke which equates to an estimated third quarterly profit of $185…