ordinarily i'd say "any competition is good competition". but the truth is, at some point of saturation, consumers gain nothing.

i think what's happening now is that secondary incentives have developed in the market. running an exchange is lucrative because listing fees have gotten so high---it's not just about trading fees anymore. by the same token, ICO companies are desperate to have their tokens listed somewhere, which creates demand for these new exchanges.

so it's no longer just about organic supply and demand for cryptocurrencies. i'm not sure how long this trend can last.


as long as the order books are thick. if you spread traders and market makers around too much, that makes for thin markets, more slippage and higher volatility.