⛅THE PROBLEMS
NEGLECT OF UNBANKED AND UNDERBANKED
A combination of unbanked populations from the world’s top ten most unbanked rankings indicates that over six hundred million people are unbanked. This means a huge percentage of the world population does not have a bank account! You can imagine the number of crypto investors who are unable to access the market just
because they do not have a debit or credit card due to inaccessibility to banks
STRICTER REGULATIONS ON CRYPTO
A total of nine (9) countries have fully banned Crypto hence, making it more difficult for over 1.8 billion people to access the crypto market Forty-two other countries have tightened legislation summarily restricting the ability for banks to deal with crypto, or prohibiting cryptocurrency exchanges according to the 2021 Summary Report by the Law Library of Congress. A combination of both groups indicates that over 3 billion people will struggle to access cryptocurrencies.
The number of countries that have banned crypto either completely or implicitly has more than doubled since 2018. The numbers would only increase as more governments continue to create restrictions to make it more difficult to access crypto. All this inevitably imposes limitless restrictions on the adoption of cryptocurrencies.
NATIONALITY/RESIDENCY PROFILING AND SEGREGATION
Centralized exchanges continue to deny people interested in cryptocurrencies access to their exchanges just because of their nationality or residency. This is a huge deviation from Satoshi Nakamoto’s vision for a Peer-to-Peer electronic cash system.
GROWTH OF DEX AND DEFI SPACE
With the recent explosive growth in the decentralized finance space, new generation tokens and projects struggle to be listed on centralized exchanges. With massive adoption of DEFI and the growth of Decentralized exchanges, the use of hot and cold wallets is on the increase. People utilizing these non-custodial wallets struggle to change their fiat to crypto and vice versa.
Participants in the decentralized Finance and users of DEXs usually find it difficult to interact with swaps, as they are unaware of the number of tokens, they will get due to slippage settings.
UNFAIR WITHDRAWAL LIMITS AND UNDUE CONTROL
Investors in cryptocurrencies often face situations where centralized exchanges limit the amounts of withdrawals they can make on their own money. Many of them look for flimsy reasons why you have to prove several things and usually threaten their users with perpetual bans on accessing their funds.
INTERACTION WITH FIAT
Due to regulatory restrictions of most jurisdictions, even major centralized crypto- exchanges struggle to provide direct deposit and withdrawal of fiat. Hence, Investors go through huge inconveniences to convert their fiat funds to cryptocurrencies and then transfer them to an exchange. The hassle is no less when investors wish to withdraw their cryptocurrencies to fiat.
TERRIBLE & NON-EXISTENT CUSTOMER SERVICE
Investors struggle to have their fiat converted to cryptocurrencies and transfer these to centralized exchanges, majority of which provide substandard services. When issues arise and their customers want a swift response, they do not get that! Most of the centralized exchanges have absolute control of your funds but they do not trust you to the extent of letting you contact them directly.
ZERO PROFIT SHARING
Customers struggle to send their funds to centralized exchanges and the exchanges make a great deal of profits from their investments and keep it all to themselves. Binance which commenced operations in 2017 declared a $7.5 million profit and has seen that grow to
$900 million in 2020. People help them make money and they unfortunately give nothing back in return! Majority of investors are from developing and underdeveloped countries with poor populations seeking a change to their conditions. Sharing is caring.
COMPLEXITIES OF CENTRALIZED EXCHANGES
Centralized exchanges are still new. With the first centralized exchange established in 2010, a lot of potential crypto-market participants are discouraged just because they are unable to learn how to trade on centralized exchanges. Our market research indicated that 45% of would-be crypto investors are not engaging the market just because they cannot work it out.
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