With the current popularity and operational strength of the three major exchanges, even if facing the competition and pressure of decentralized exchanges, I believe that in the future, they will still be the preferred platform for ordinary traders to trade. This means that they still enjoy huge profits. With this guarantee, their platform currency prices are unlikely to fall too much. This is a guarantee.
But at the same time, we should pay more attention to the fact that in the field of investment, we evaluate a product to see if it has potential. There is an extremely important factor-that is, whether there is room for imagination in the future of this product, and its imagination. The bigger it is, the bigger its future growth will be .
The direct competitor of the "centralized exchange" is the "decentralized exchange", then let's take a look at the decentralized exchange (for the sake of simplicity, I will refer to the "decentralized exchange" as DEX below) The imagination of the future.
The rise of this round of DEX has completely achieved disruptive changes in two aspects:
First, it has changed the way tokens are listed and traded, so that there is no threshold for token transactions (no exchange review is required), and at the same time, no threshold for traders' transactions (no registration, no need to provide identity information) , This is the true meaning of decentralization and the true meaning of blockchain . In a more essential way: it gives people the freedom to trade tokens. Once there is freedom, there will be prosperity and miracles.
Since using Uniswap, I never want to provide my phone number or even my ID number to register for an exchange. Now, in addition to the decentralized exchanges that I want to buy Bitcoin and Ethereum, most of the coins I want to buy are already available on Uniswap. The proportion of centralized exchanges in my trading activities is getting lower and lower.
I believe this is an irreversible trend.
Second, DEX makes the transaction process and transaction information completely public, and even the profit of the exchange is completely public. This has done what the regulators dream of but have been unable to do. Whether it is a listed company in a traditional stock exchange or a digital currency exchange, which company or exchange can have such transparent and open operating data? Now DEX technically achieves this .
Only transparency and openness can usher true trust and real prosperity.
Any of the two disruptive changes brought about by DEX is beyond the reach of centralized exchanges. These two points are the imagination of DEX in the future, and they also indicate that this field will have a huge increase in the future; at the same time, these two points are precisely the ceiling of centralized exchanges, which limit their future imagination .
Therefore, in this case, if we look at the future trend of the "centralized exchange" platform currency, we will come to the conclusion that the price will not fall too much, even if it falls, it will not fall deeply, and there is a minimum guarantee; but The room for imagination to rise is extremely limited, and will no longer be the leader of the future bull market, but will only become an established blue-chip stock and follow the market.
And if the development of DEX is extremely rapid, and the scale is large enough to shake the centralized exchange, then the centralized exchange platform currency may not even be the status of "old blue chip stocks". I am afraid that this day will not come in the short term, but the long-term possibility is not small.
Based on this value judgment, the way we invest in the exchange platform currency is clear: that is to continue to hold and wait for the bull market climax or some positive stimulus to cause the currency to suddenly rise in installments and batches .
Let's look back at DEX.
Let's look at the DEX platform first. Currently, there are mainly Ethereum, EOS, etc. I only like Ethereum, because its ecological scale has formed a barrier that other platforms cannot overcome.
DEX on Ethereum can be roughly divided into two categories: one is the old projects, such as Bancor, Kyber, Loopring, etc., and the other is the emerging projects such as Uniswap, Balancer, and Curve.
What is more embarrassing now is that the trading volume of the established projects are low, so their currency prices are also relatively low, it seems that investors have limited interest in them. However, Bancor is worthy of our attention in the old-brand projects, because the project team has been moving frequently recently, and the latest version has been greatly improved in technology. Whether it can increase the transaction volume based on this in the future is whether its currency price can turn around. The key .
And the three emerging projects I just listed have made the limelight in this DeFi wave, and the trading volume far exceeds that of the established exchanges. However, the strongest Uniswap and the third Curve among the three emerging exchanges currently have no tokens, only Balancer has issued the token BAL.
BAL's currency price has risen astonishingly in the past few days. It is obvious that funds are being sought after, and it is being sought after at all costs, which is obviously affected by the FOMO mentality. So what is the current investment value of BAL? I think it is in an embarrassing position: if you look at the future, it does have room to rise, but how big its room can be is currently unpredictable; if you look at the short-term, its rise is really too strong, and it will not be unexpected if it pulls back.
