Cryptocurrency exchanges are an integral piece of cryptosphere’s infrastructure. A majority of the consumers begin interacting with cryptocurrencies by the way of buying well known cryptocurrencies like Bitcoin and Ethereum as investments.
A lot of these new consumers may not even fully understand what cryptocurrencies are, however, seeing Bitcoin’s past performance, and feeling that are already too late, consumers often make hasty decisions — those involving investing in new coins without analysing them thoroughly. Mind you, we are not saying consumers should not invest coins, the issue here is consumers should do their due diligence and evaluate the coin for its potential to get adopted by people and grow before investing in it.
At the same time, it is important for cryptocurrency exchanges too, to ensure that that they do not list shitcoins, and thus expose consumers to them. Recently, it was highlighted that Binance was charging a fee of 400 BTC for listing a new coin. However, the CEO of the company denied the allegations. Similarly, rumours flew that KuCoin charged 50 BTC for listing a coin. While charging a fee to list a coin is not issue, however, the apparent steepness of the fee and the inference that anything can be bought with money is what caused a debate in the cryptosphere. These rumours are most likely to have shaken the confidence of many consumers in cryptocurrency exchanges.
Cryptocurrency exchanges are not just important because they help consumers interact with cryptocurrency exchanges, but as governments across the world are interacting cryptocurrencies for their value in economies, these pieces of infrastructure are also being scrutinised. One of the major issues that regulators have with cryptocurrencies are that there is a lack of tools in the market to check fraud and manipulation. If cryptocurrency exchanges, which deal with the money and personal information of such a large number of consumers, get shown in a bad light for their irresponsible practices, chances are that the consumers will lose their chance of seeing cryptocurrencies legalised.
Therefore, it is of utmost importance that cryptocurrency exchanges take all the possible measures to safeguard consumers. One of the things that they need to do is have a stricter policy against shitcoins. They should evaluate new coins very thoroughly before listing them, so that only authentic projects are able to tap into the wide consumer base of cryptocurrency exchanges and benefit from them. With shitcoins not getting listed on exchanges, consumers will not get exposed to them, and they will only invest in authentic projects.