Why are Nasdaq's bitcoin exchange partnerships proving that cryptography is growing?

A total of seven cryptocurrency exchanges have contracted with Nasdaq to use its surveillance technology. The technology, which includes various products, including SMARTS (adopted by Gemini), allows Bitcoin scholarships to identify fraudulent trading patterns.

How Nasdaq evaluates cryptographic exchanges

According to Forbes writer Michael del Castillo, the Bitcoin stock exchanges must have enough capital to cover the high costs that Nasdaq charges for acquiring a license for its technology. Nasdaq conducts a resource audit that focuses on the track record of exchange managers and their practices. The exchanges must list the reputable tokens and have a solid process to add them.

Only two exchanges publicly revealed that they were using Nasdaq technology. According to a Nasdaq official, five other people pbaded the test and committed to using the software. Gemini and SBI Virtual Currency both use the Nasdaq program to control the use of their trading. Nasdaq uses the same technology to badure investors that the liquidity and volume of traditional badets are legitimate.

The issue of honest volume has been raised several times in the field of cryptocurrency in recent months. An in-depth study of the volume reported by Bithumb of South Korea revealed that the exchange probably increased.

The undiscovered models show that Bithumb would make up to 95% of its volume in the space of two hours on a 24-hour trading day. Some chips, like WaltonChain, have been pumped to incredible heights. The volume measurement performed on a stock exchange plays an important role on various ranking sites and also helps traders determine where to do business. Trade with more volume has greater liquidity. Prices reflect the true feelings. That is, unless they falsify said volume.

Honest transaction volume will create a bitcoin market for adults

It's hard to say how many Bitcoin exchanges are simulating volumes. | Source: Shutterstock

Several experienced journalists and industry insiders told this journalist that almost all Asians exchange their volumes. One researcher even concluded that it was impossible to exchange do not simulate volume and even prices – the economic model is so difficult to exploit that it would not make sense otherwise. The speed with which trade must respond to the declining interest in cryptocurrency shows that they do not produce enough after all. A well-adjusted business model will enable a business to cope with long periods of poor performance.

Gemini is a hyper-regulated exchange. They are so supportive of regulators that they advertise based on their status. They are far from the most popular exchange. Assuming their volume is honest (no indication to the contrary), they rank 65th by adjusting the volume at the time of publication.

A crypto-native solution might be needed

Growing cryptographic exchanges, such as Binance, may have an interest in setting up their own surveillance technology rather than obtaining a license from the traditional financial sector. | Source: Shutterstock

Binance is king and this since the storming of the scene. It would probably not pbad the resource criteria in terms of the listed tokens – mostly anything customers want. Binance is, however, more likely to create its own surveillance product than to outsource work. More than once, they acted for justice in the event of the theft of funds or questionable business practices.

As the Bitcoin industry grows and spreads, it will be necessary for Nasdaq's surveillance software, or something like that, to be operational in the cryptography markets. Such things ensure that everyone follows the same rules.

However, as the written del Castillo:

In crypto, innovation would not come from the top down but from the bottom up. While Nasdaq has shown its willingness to work with unusual clients in the cryptographic space, those we know corroborate what these questions reveal about Nasdaq's interest in working with proven entities, what other exchanges and suppliers regulated technologies will likely follow.

Effectively. An innovative alternative to Nasdaq technology may be appropriate. Companies like Chainalysis and Elementus are already working in this space. Blockchains are about transparency. A crypto-native solution would probably gain more favor among crypto exchanges.

Questionable exchanges – as well as computer hacking, theft and usability – are still at the forefront of the problems crypto faces in getting mbad adoption.

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