11. Exchanges marketplaces

As digital trading becomes more convenient and accessible through crypto platforms, exchange marketplaces witnessed historical and unprecedented growth since 2010. In 2021, global trading revenue generated by cryptocurrency exchanges on centralized platforms reported $24.3 billion which for the first time it exceeded traditional exchanges like the New York Stock Exchange and the Nasdaq. This market increased seven times from the $3.4 billion in sales recorded in 2020 and was 60% higher than the roughly $15.2 billion brought in by traditional securities exchanges. The main players in of this industry, Coinbase, Binance, FTX take up most of the market by transaction volume, all competing for the record $1 trillion market capitulation reached in 2021.  

These platforms continue to update their services by offering new coins, better leverage trading options, and lower fees to compete in this volatile, maturing, and highly dynamic market. With their innovation comes a renewed concern for investor protection that needs to be addressed. The power delegated to these powerful centralized platforms makes them highly susceptible to abusive practices involving self-serving market manipulation tactics that impact investors and markets. The CEX access to the hot wallets and their ability to modify orders books grants them the power to use the following deceptive tactics to increase their profits.

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