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1/ Liquidity is the lifeblood of all assets, crypto assets are no different. Liquidity allows large players to participate and generates trading volume which means money for exchanges.
2/ Crypto exchanges are a-few-winners-take-all type of market. Nobody wants to trade where there's no liquidity. This gatekeeper role has allowed exchanges to profit immensely. Now for the first time we have a #DEX with significant volume and liquidity.
3/ This is game changer. Why? Because now teams anywhere in the world can deploy their tokens to decentralized exchanges like #uniswap without the hefthy listing fees or any complicated application/filtering process and still get access to first-class liquidity.
4/ Large players are already adapting. #Binance 
, coinbase huobi, etc are listing coins faster than ever before.
Of course entering a large exchange such as Binance is still valuable but it's not as critical as it once was.
, coinbase huobi, etc are listing coins faster than ever before.Of course entering a large exchange such as Binance is still valuable but it's not as critical as it once was.
5/ However, DEX offer something that no CEX can, privacy. And the market has shown that traders are willing to transact in riskier sites to remain anonymous.
6/ How can incumbents like Binance react? Well, Binance got to where it is now because it offered a large variety of coins not available anywhere else in 2017 and they were very fast in listing new coins, similar to what #FTX is doing now.
7/ The key will be to balance the ability of listing new coins as fast as possible while making sure none of those coins are scams. Clearly easier said than done, but that's the new norm and the challenge ahead.
8/ Furthermore, I would also expect an increase in the yields for assets parked at exchanges. This would make DeFi platforms less attractive.
While the 1000% APY from DeFi is unrealistic, we have a large way to go from current 8% offered at some exchanges.
While the 1000% APY from DeFi is unrealistic, we have a large way to go from current 8% offered at some exchanges.
9/ DeFi is still a large experiment and you can make a lot of money but you can also lose it all so do your own research before (or at least some research) before jumping in head first.
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