Another doubt I have is that why are these platforms not moving to an exchange type of business. They already have good customer base and the required tech to handle crypto transactions. They just have to redesign as a crypto exchange and become profitable like Binance.
The entire point of people using these kind of platforms is specifically because they are not operating on this type of model. Many people want to trade peer-to-peer, and they certainly don't want their peer-to-peer exchange to turn themselves in to a central order book type of exchange. If users wanted that kind of platform, then why would they not just have abandoned all their privacy and security and signed up on one of the many such platforms already?
Still, there is no real reason to trade peer-to-peer if you are going to do it via a centralized platform which requires you to submit KYC and deposit your coins to their centralized wallets before you can trade. You are sacrificing all the benefits of trading peer-to-peer by doing so, and instead gaining the huge disadvantages of zero privacy and zero security that you get by using a centralized exchange. Most serious peer-to-peer traders abandon LBC a long time ago when they first started requiring KYC. Paxful will be no different.
If you want to trade truly decentralized, then use Bisq.