We added three new exchanges to Exchangify: The Ocean, LBank and DigiFinex. In this post we share our thoughts about each exchange.
As stated in our introduction post, the focus of this blog is to provide added value to the main website. As a result, we will try to prioritize the exchange features that have not yet been addressed on the exchange overview page.
The Ocean is a new decentralized ERC20 token exchange that launched August 15th, 2018. The exchange is available in 8 languages and is being developed by a team from the United States. More about the team here.
Currently, The Ocean only supports 8 ERC20 tokens which is a bit dissapointing, but we can expect more tokens when trading volume picks up.
The user interface is actually very good, which is a relief given that the classic problem with decentralized exchanges was the convoluted and complex UI that often led to trading mistakes.
We can’t recall the amount of times we have read sad stories on Reddit about traders fat-fingering trades on EtherDelta/ForkDelta due to the complex UI and little safeguards.
We applaud the Ocean team for developing a user interface that can easily match those of centralized exchanges.
The Ocean has a solid user interface.
Now, let’s talk about trading fees.
As you can see below, the fees are on the cheap side as well. In addition, if you hold the OCEAN token, there’s another 50% discount for both maker and taker.
Please note that since decentralized exchanges offer wallet-to-wallet trading, every transaction will also incur a gas fee (the fuel that drives the Ethereum network). This is opposed to a centralized exchange where only the actual withdrawal or deposit undergoes the gas fee.
This is relevant because the gas fee doesn’t scale with the amount of tokens sent, so if a trader is looking to do a high number of trades (e.g. buy and sell back and forth), it is better to use a centralized exchange where he deposits a large amount of tokens at once. That way he won’t be paying for gas fees every time he executes a trade.
The only downside of The Ocean right now is the lack of liquidity as volume is low to non-existent. We believe the reason for this could be the fact that the tokens trade against WETH rather than ETH.
LBank is a traditional, centralized crypto only exchange headquartered in Hong Kong. It seems to be a Binance clone, given that the supported pairs are similar (mostly USDT), fees are identical (0.1%) and both exchanges are from Hong Kong. FCoin is another exchange that has exactly the same features.
This makes us wonder why their 24hr volume is in the hundreds of millions given that they do not seem to offer any substantial advantage over Binance.
It is no secret that wash trading is common practise in the world of cryptocurrency exchanges, especially the ones located in Asia. You can read a more detailed analysis here.
Let us know in the comments what you think.
DigiFinex is another exchange similar to Binance, LBank and FCoin. However, DigiFinex operates from Singapore, not Hong Kong, and trading fees are higher at a 0.2% (flat rate).
Again, legitimate concerns can be voiced around the very high reported 24hr trading volume (around 150 million USD), as at first glance this exchange doesn’t seem to offer anything in particular over Binance, FCoin or LBank.
There is no margin trading, no fiat support and fees are higher.
The English documentation is quite bad, and the exchange seems to be focusing on the Asian market entirely.
Again, we advise caution when trading on these Asian exchanges, as they could be artificially boosting their 24hr volume in order to attract traders looking for liquidity.
In this post we have gone over some of the new exchanges added to Exchangify. We want to stress that despite the controversies associated with some exchanges, we do not feel like we are in a position to determine whether an exchange is artificially fabricating their volume or not.
In the end, almost every exchange has been accused of something and it is up to the trader or investor to determine whether they trust an exchange or not.
That being said, we may consider adding a filter that will allow users to remove exchanges from the list that have been accused of artificially boosting volume or wash trading in the future.