It is evident that cryptocurrency exchanges are controlling a big chunk of the market. This includes a majority of the industry’s inflows, while also providing over 40 percent of the jobs within the digital currency space. As a result of this, when reviewing the performance of cryptos during 2019, the core focus needs to be on these cryptocurrency exchanges. It is clearly evident that it was in the year 2019 that these exchanges diversified and expanded, taking into account IEOs (initial exchange offerings) and their services.
Extended Partnerships and Referrals
In an attempt to capture more of the crypto markets, exchanges have been working aggressively on developing partnerships with existing businesses. They have also been increasing their referral programs to try and attract more investors to their platforms.
With reference to partnerships, exchanges have been driven to ensure that they can easily and effectively tap into a more extensive user base from crypto companies that have a strong presence in this space. On the flip side, referral programs have been used as a means to incentivize existing clients to encourage their friends and family to also join in and sign up with the exchanges.
Interestingly, exchanges have made their referral schemes more attractive in 2019, in terms of bigger commissions and rewards. A good example of these referral programs is Kraken, which recently adjusted their existing referral program to now offer 20% commission on referrals and up to a maximum of $1,000 per client. Nominex, on the other hand, has come up with a referral scheme that does not have level limits, and it is giving the users a better opportunity to generate leads and get more rewards. This referral program is called the Nominex Binary Affiliate Program and it is also combined with the exchange’s native token, NMX, to further entice affiliates and to boost brand loyalty.
Over the past few months, we have also seen many partnerships being formed successfully in the crypto space. A recent one is WazirX, an Indian exchange, which was acquired by Binance. Another case is the recent strategic partnership between Poland’s OAAM Consulting firm and IDAX. As a result of this arrangement, any blockchain project or European team that wants to launch an IEO or to get listed on IDAX, will now need to go through and work with OAAM.
With such partnership arrangements, it is clearly evident that exchanges are diversifying in their operations and reaching more territories. This is happening as a result of them combining their existing user base and brand and then benefiting off the knowledge of specialized companies in order to reach a global base on their operations.
Exchange Offerings Intensifying
The number of Initial Exchange Offerings in 2019 has also grown exponentially. The number of exchanges offering launchpads for tokens has also increased with many existing exchanges laying on IEOs including Huobi Global, Binance, KuCoin, Bittrex International and more.
It is important to note that while more exchanges expand on their operations, create more partnerships and enhance their referral programs, this is not only beneficial to these exchanges. In fact, it is a move that will see more traders and investors also benefiting. That is, cryptocurrency holders and new players in the market are also going to be able to find a better and more conducive environment to invest in. The end result is that it is win-win situation for most stakeholders in the cryptocurrency market.