Coinbase Competition Grows as Veteran CEX.io Launches US Office

Journalist:
P. H. Madore @bitillionaire
July 8, 2019

Users of long-time Coinbase competitor CEX.io will have gotten an e-mail today informing them of the exchange’s decision to open a U.S. entity.

Easy On-Ramps Everywhere You Look

As one of the few exchanges to accept credit cards for several years now, CEX has finally decided to launch a U.S. wing.

In addition to Binance’s Westward expansion, Coinbase may find itself actively fighting to keep clients in the coming years.

Binance’s main branch currently offers credit card deposits via Simplex, a service that integrates with numerous exchanges and wallets to help people acquire crypto at a premium.

Coinbase, on the other hand, offers market-rate crypto plus a fee and often plays a significant role in the market’s rolling volume. If CEX opens an equally attractive product, will they suddenly wield that kind of influence as well?

CEX Targets Dissatisfied Coinbase Customers

At press time, CEX had done just $5 million over the scope of its 38 trading pairs.

Expanding its service to U.S. customers will vastly improve this statistic, especially if CEX focuses on its prime target: dissatisfied Coinbase customers who are loud and all over the internet.

Smaller exchanges struggle with scale and also have a harder time processing customer support requests. Many minor exchanges engage in various tactics to pump their statistics, including encouraging wash trading and transaction mining.

CEX writes in its notice to customers:

“CEX.IO has already been operating in 20 U.S. states that allow anyone to facilitate fiat-to-crypto transactions. And we’ve received 9 new Money Transmission Licenses (MTLs) in 2019!

“Our next move is to obtain an MTL in every state in the U.S. and continue in our mission to provide a regulated, trusted path for the general public to participate in the digital economy.”

Binance’s American Takeover

Binance will have less of an uphill climb than CEX, being a rockstar.

A quick Google search of the exchange yields more good results than bad.

A relatively minor hack that was insured and the drama that surrounded it already fades as the giant moves forward with bigger and bigger plans.

Whether Binance’s CEO Changpeng Zhao wants to admit it or not, Binance is going to be a serious alternative to Ethereum.

If people expected Binance to list Binance Chain tokens against Ethereum, that speaks to their prejudices. Why wouldn’t they want their token to pump when tokens dump?

For his part, Zhao says that just because they haven’t enabled Ethereum and Binance token pairs doesn’t mean they won’t do so.

But Binance has to continue to grow, and that might mean others shrink or fall to the wayside.

May the best blockchain(s) win.

Last modified (UTC): July 8, 2019 19:32

P. H. Madore @bitillionaire

P. H. Madore has written for CCN since 2014. Please send breaking news tips or requests for investigation to bitillionaire+phm@gmail.com. He lives in Maine, USA. A single father of four young children, he does not discourage financial donations, provided they do not come with strings attached.