Post
Topic
Board Economics
Re: How Binance Decentralized Crypto Exchange Launch in 2019 Will Impact the Market
by
tee-rex
on 08/10/2018, 16:15:41 UTC
Don't they make a lot of money by charging fee's from the each trade? How would the decentralized trading platform would help them? What would be the method they would make money from it? I understand they are already charging less than almost everyone in the market for the fee, even less with their bnb making the fee go down %50 however its still something.

What would happen if they get rid of that and allow people trade directly? How would they make money at all? I am not sure what their play is doing something that would lose them money and doing it themselves as well. Weird to see, there must be a way to make money for them I can't see.

I should confess that I've been thinking along the same lines too and asking myself same questions. One of the way they can make money is to add a layer to a coin's base protocol that would take some percentage from every trade made using it. Another way to do it, and that's how it is done with bitshares, if I'm not mistaken, is by using some utilitarian token ("gas") for this purpose. Then you can advertise a decentralized network for this token in the same way as you would do while bootstrapping any other new coin. By taking this approach, you will be able to remove a third party risk and still receive royalties or fees from trades on a decentralized exchange built along these principles.