Two days ago, Jared Tate went on a Twitter rant aimed at Binance. Jared’s core argument was that Binance has consistently failed to list Digibyte (DGB) because they refused to part with a “bribe” to facilitate this listing. One of the most interesting points that Jared raised was that, even as Binance continues to skip Digibyte (DGB), it has been listing worthless pump and dump coins. This raises a very important question, are centralized exchanges becoming gatekeepers to innovation?
If fees are the main determinants to getting listed on major exchanges, then it means that truly decentralized projects that don’t have “CEOs” will always take a backseat in favor of the more centralized ones.
The danger of this trend is that the crypto market could become irrelevant, despite holding so much promise. That’s because, if the only projects that gain prominence on exchanges are worthless pump and dump tokens, the volatility around them will eventually push people away. People are in this market to make money and if they are consistently exposed to pump and dump schemes that leave them holding worthless bags, they will eventually lose interest. That’s catastrophic for a market that is still struggling to draw in new money after this year’s bear run, which has seen most altcoins shed up to 95% off their value. Without new money, both institutional and retail, the market will die.
For crypto to thrive, good projects that are truly decentralized need to thrive. That’s because, when such projects thrive, the market will stabilize and more people will take an interest in crypto. For instance, if a project like Digibyte (DGB) becomes more accessible to investors, its adoption in the market will increase too, creating a self-reinforcing cycle of success.
But for this to happen, crypto needs to go back to its roots. The reason why bitcoin (BTC) rose in the first place was due to the failings of centralized systems, especially the banking industry. This is the course that crypto needs to stay on, for it to succeed. As things stand, the only way to do this is for the market to transition towards decentralized exchanges. That’s the only way that truly decentralized cryptos will thrive, and gain mass adoption. This process may take time, but it is the future of crypto. But it’s not all doom and gloom. Decentralized exchanges are on the rise, as can be seen in the excitement around the StellarX platform.