decentralized exchanges are a growing trend every year, but struggle with adoption because they do not get the volume unlike the centralized exchanges.
(incentive rewards)A decentralized exchange must have loyalty/incentive rewards exchange for their fees, like plutus.it or the holder of the coin/token have a POS award collecting fees to offset the trading costs.
(security)decentralize exchange has advantage having quick trade direct to a trusted wallet on the blockchain is far greater security then holding your coins in another exchange wallet.
(privacy)decentralized exchange does not have to be KYC regulated , many people forget when buying DASH the funds deposited and withdrawn are all recorded on a server along with all your details.. So what is the point of buying a anon coin with this detail.
(proof of identity and ownership) blockstack are working on proof identity on the block-chain, this is important when people need proof of ownership and reputation when trading physical goods on the blockchain, If one can confirm a identity and one can also proof of ownership using eg. factom. A true colored coin/electronic NFC tag could represent property on the blockchain such as digital property or physical property.
A decentralized exchange with unlimited possibilities could be a meeting place for property transfer p2p or a silent group investment into a business using colored coin and smart contracts.
(business) heat ledger could be setup in reverse from tradition businesses, a retailer could have software connected to the block chain where digital fiat could be setup in a escrow gateway where shareholders/partners in the business are payed any where in the world in heat coin at the point of sale, by using smart contracts and gateways. and where outside investor receives enough crypto-currency restock the business. This could work well where a business owner has not have a lot capital. This is a true DAO where every business has DAO.
ICO just joking..lol