Crypto-Twitter felt a sense of triumph when Binance and other Exchanges like Kraken and Shapeshift decided to De-list Bitcoin Satoshi Vision (BSV). Moreover, this the first time that a split between ideas resulted in delisting rather than opting for another ‘Fork.’
John McAfee tweeted on the issue:
“If BSV was his true vision then either Satoshi is the worst communicator in the world, or Craig Wright, Calvin Ayre and BSV are frauds.”
However, what feels like a unanimous decision was actually influenced by one Exchange’s immediate decision. The price of the delisted token fell by 21% in hours of the announcement. Hence, there were many users on the BSV chain who suffered losses which also might have been oblivious of the claims on Satoshi’s identity; not many people outside the crypto-community knows lead proponents of cryptocurrencies.
Centralization of Exchanges an Alarming Issue
Furthermore, BSV proponents have claimed that delisting was a violation of the right of free speech for Craig Wright. While Crypto-Twitter is united against Wright’s claims and the delisting, there is another alarming issue addressed by industry leaders.
Vitalik Buterin, the co-founder of Ethereum also noted on the issue:
#DelistBSV is not a free speech violation for a different reason: exchanges are already selective so listing is active promotion, not “just letting the market play out man”
Binance is the largest Exchange in the world, and it is centralized. In fact, CZ can influence the price of any cryptocurrency by just ‘threatening to delist.’ Moreover, we have often seen how the listing of cryptocurrencies on Exchanges create a short term ‘pump and dump.’ It was evident with the ‘Coinbase effect‘ too where just anticipation of listing on Coinbase would drive the price of a cryptocurrency.
Charles Hoskinson, the CEO of IOHK, the firm behind the launch and development of Cardano platform tweeted on the issue saying:
“Exchanges are not public utilities, they are businesses often run by private owners. If you want a utility, then invest in or use a DEX. Don’t complain about the BSV delisting and cite free speech or some other appeal. It doesn’t exist with private companies.”
Hoskinson and Vitalik’s tweet on the issue suggests that privately managed Crypto Exchanges with such a large user base creates a monopolistic or oligopolistic market. Individual players are empowered to influence the market considerably. Hence, in its drive to bring decentralization in the World economy, the crypto-community seems to be moving towards centralization within the crypto-sphere itself.
There are many other centralization issues associated with Cryptocurrency Exchanges. Most importantly, the private key and custody issue, as Cryptocurrency Exchanges acts as custodian of the cryptocurrencies for their users. Since its inception ten years earlier, many Exchanges Wallets have been hacked and millions of dollars misplaced at the hand of the Exchanges.
Therefore, Decentralized Exchanges and personally managed open-source crypto-wallets are the only way forward towards a truly decentralized, secure and trust-worthy Blockchain ecosystem. Furthermore, Decentralized Exchanges can opt for a democratic process for listing and delisting of cryptocurrencies to ‘give the control back to the community.’
Is a shift to Decentralized Exchange need of the hour or crypto needs more centralized supervision? Please share your views with us.
The post Vitalik and Hoskinson Support #DelistBSV, But Concerned About Centralization of Cryptocurrency Exchanges appeared first on Coingape.