While the market capitalization of cryptocurrencies has been growing exponentially over the last few years, 2021 has become an extremely favorable year for bitcoin (BTC), ether (ETH), and several other altcoins.
With most coins shattering previous records and setting new all-time highs (ATH), the market has undeniably gathered momentum. But data from several sources foreshadow a somewhat worrisome trend that may have long-term impacts on the mainstream adoption of cryptocurrencies. According to a recent report by on-chain market analysis firm Glassnode, most exchanges are currently witnessing modest outflows of around 20,000 BTC per month.
There could be many reasons behind the outflows, whether the attractive opportunities in DeFi or because users are increasingly losing trust in third-party exchange providers. However, exchanges have done little to fix their image problem while DeFi continues to expand. A confluence of centralized exchanges (CEXs) retaining control over users’ funds and private keys and overly complicated fee structures may be sapping interest in their services, especially given the near absence of meaningful customer service.
Then there is the increasing problem of regulations, which has led several exchanges to either shut down shops in several jurisdictions or limit their offerings. Other than this, most centralized exchanges don’t offer additional products or savings sources that can help HODLers generate extra income from their assets. Likewise, decentralized exchanges (DEXs) come with their own sets of challenges, like extremely complicated user interfaces and consistent liquidity shortages.
As such, several promising initiatives are being tested and deployed to help users get the most out of their investments while ensuring all regulatory compliance policies are satisfied. That said, take a deeper look at two projects striving to lower crypto’s entry barriers, overcome the inherent downsides, and identify a path to simplify the existing processes to facilitate the broader use of cryptocurrencies in real-world scenarios.
Deriving The Maximum Return From Hodlings
To sustain the crypto craze, CoinZoom, the most popular consumer-facing crypto exchange in the United States, is continuously rolling out new initiatives to foster the real-world application of cryptocurrencies. CoinZoom was quick enough to grow its dominance globally by acquiring operating licenses across several jurisdictions, noticing the growing demand for regulated and compliant crypto exchanges.
The platform is registered in the US as a Money Service Business (MSB), operating across all 50 states and territories. CoinZoom also registered with AUSTRAC, the Australian governing regulator that grants the Digital Currency Exchange License to financial exchanges, to expand its services to other countries.
Moreover, the CoinZoom team plans to expand into Europe while awaiting approval of the EU E-Money License and the US BitLicense. But for the moment, CoinZoom has established a sister company, CoinZoom Europe Limited, registered in Ireland. As of date, CoinZoom supports users from more than 140 countries while ensuring KYC and AML checks for millions of customers.
Unlike most exchanges that limit themselves to trading, CoinZoom brings forth various crypto-centric services within its ecosystem that make it easy for users to spend cryptocurrencies in the real world. Besides trading services, the platform offers an interest-bearing crypto savings account titled CoinZoom Earn, a range of CoinZoom Visa cards accepted at 53 million merchant stores worldwide, and a zero-fee remittance service called ZoomMe.
Another project, due for a release later this year, aims to solve the legacy problems clouding decentralized exchanges (DEXs). Built on the Cardano blockchain, Ardana is preparing for the launch of Danaswap, its decentralized stable-asset DEX and automated market maker (AMM). With Danswap, Ardana plans to enable highly capital-efficient trading between stablecoins and real-world assets while ensuring low-risk income for liquidity providers.
Founded in early 2021, Ardana is poised to become the first stablecoin-backed DEX to blur the lines between crypto finance and real-world finance to ensure greater liquidity and stability. Powered by the platform’s asset-backed stablecoin, dUSD (Ardana Dollar), Danaswap will empower global users to exert greater control over their digital assets while simultaneously offering several substantial yield-generating opportunities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.