Coinbase vs. Binance: how crypto exchange #1 lost its position?
The willingness of Coinbase to cooperate with financial regulators has brought both positive and negative consequences for the exchange, believes journalist Jeff Roberts. Thanks to the actions of Coinbase management, Binance has the opportunity to infiltrate the industry and take a dominant position in it.
Roberts was the guest of 126 episodes of the Unchained podcast:
“By complying with US regulations, which I think many in crypto correctly say are too onerous-that opened the door for Binance to start running circles around them.”
Due to regulatory compliance Coinbase has become difficult to innovate. And while this step has made crypto more inclusive and approachable, it has also opened the door for Binance.
“The regulatory thing is a mixed blessing for them-it’s helped them become mainstream, but it has also impeded their ability to innovate.”
In 2017, Coinbase was the largest cryptocurrency exchange in the world. However, in the same year, many Coinbase users suddenly began to mass transfer their coins to Binance. Within five months of opening, Binance overtook Coinbase as the number one exchange in the world.
Today Binance has trading volumes of $7.4 billion, while Coinbase Pro (its professional trading platform) has just $614 million, according to CoinMarketCap. The sharp jump in Binance’s development can be explained by willingness to list hordes of new altcoins.
“I think that was and is an interesting story — the nimble ability of Binance to build what they want, and operate the way they want to. And Coinbase became bureaucratic as a result of having to comply with regulations. Coinbase was polishing up their old Ford and feeling really proud, whereas Binance was building a Porsche. And I think they got beat.”
You can always start to earn Ethereum at our fair crypto lotto Ethex.bet! All you need is to guess the last of the next Ethereum block hash and take a reward.
