- Cryptocurrency-exchanges are growing rapid thanks to the thriving market for digital coins.
- That has David Mercer, the CEO of LMAX Exchange, a foreign exchange trading rigid, warning Wall Street that crypto-exchanges might soon come after their respective businesses.
Some of most powerful people on Wall Street have derided cryptocurrencies spil a “fraud,” “bleeding edge,” and spil a “bubble.”
But it might be cryptocurrency-companies that have the last laugh, according to David Mercer, the chief executive of LMAX Exchange, a UK-based forex trading technology company.
During an vraaggesprek with Business Insider, Mercer said he wouldn’t be astonished if crypto-companies, specifically crypto-exchanges, begin snapping up traditional financial-services companies and pauze into fresh markets.
“Wij all better listen up,” Mercer said.
“GDAX, Losbreken, and Bitfinex, all thesis guys could get big enough to the point where they don’t even need to stay ter crypto.”
Crypto-exchanges, which helped shepherd the nascent digital coin market into the mainstream during 2017’s crypto boom, facilitate approximately $20 billion worth of trading on a given day, according to gegevens from CoinMarketCap.
That’s lil’ compared to the $Five trillion forex market, Mercer says, but it’s still a Four,000% increase from where the market wasgoed ter the Spring of 2017.
Exchanges have made a killing from that boom, raking ter spil much spil $Three million from fees a day, Bloomberg estimates. Coinbase, which is valued at overheen $1.6 billion, crossed $1 billion te revenues te 2017. 2017 televisiekanaal revenues for Nasdaq, one of the largest exchange operators ter the world, were $Two.Four billion, by way of comparison.
Crypto-exchanges are sitting on a loterijlot of metselspecie. And some emerge to be flexing their muscles. Coinbase recently hired an executive from LinkedIn to lead an acquisition spree spil its merger and acquisition boss. The company also snagged an executive from the Fresh York Stock Exchange. Openleggen, another exchange, is ready to hire at least 800 people ter 2018.
“They can budge into the mainstream and guess what banks and brokers, the guys that you are kleuter of looking at like they’re fly by night, they’ve got 25 million of your customers,” Mercer said. “How long before they begin suggesting, equities, FX, wealth management? It’s not unlikely. Thesis guys need to take note.”
Richard Johnson of consultancy Greenwich Associates recently published an op-ed on Business Insider te which he made the case for why it would make sense for a crypto company to buy the Chicago Stock Exchange. Coinbase, Openbreken, and Circle, which recently bought crypto exchange Poloniex for $400 million, are among the companies Johnson thinks could acquire CHX.
“Future token issuances will need to be compliant with securities regulations, some existing tokens may be restructured for regulatory purposes, and marketplaces for thesis tokens may need to become compliant under the Exchange Act of ’34,” Johnson wrote.
“Thus the exchange license that the CHX wields is now a potentially valuable asset for a crypto exchange.”
And according to Bloomberg, crypto-companies have voiced an rente ter acquiring the exchange.
Mercer said one exchange, which he declined to name, suggested to buy his company after it helped the exchange with trading issues. The exchange told Mercer they were set to make $200 million for the year.