Vitalik Buterin Criticizes Centralized Crypto Exchanges


Vitalik Buterin criticizes centralized crypto exchanges, stating that centralized platforms have the ability to decide which cryptocurrencies “become big by charging these crazy ten to fifteen million dollar listing fees.”

9 July, AtoZ Markets The co-founder of Ethereum, Vitalik Buterin, has recently spoken on the topic of centralized cryptocurrency exchanges. In his speech, he has criticized this kind of exchange platforms.

Vitalik Buterin Criticizes Centralized Crypto Exchanges

In his recent interview with TechCrunch, Buterin has made it clear that he disapproves the centralized nature of cryptocurrency exchanges. At the same time, he has reiterated his positive views in regards to the decentralization. He has stated that by developing “better” decentralized platforms, the modern crypto community will be able to take over the “stupid King making power” from centralized crypto exchanges.

In his interview, he has stated:

 “I definitely personally hope centralized exchanges burn in hell as much as possible.”

See the video below.

In his interview, Mr. Buterin claims that centralized platforms have the ability to decide which cryptocurrencies “become big.” As per his comments, they do this by charging “these crazy ten to fifteen million dollar listing fees.” He further adds that more decentralization would fulfill the “Blockchain values” of “openness and transparency.”

Decentralized Exchanges Lack Liquidity

As a matter of fact, decentralized exchanges are created to enable users to retain the ownership of their cryptocurrencies and private keys. Yet, these exchanges lack liquidity in comparison to their centralized rivals. 

During his speech, Buterin has referred to one example to highlight the advantages of the current Ethereum decentralization:

“If someone puts a gun to [his] head and tells [him] to write a hard fork patch,” he would definitely do so. Yet, “relatively few” users would choose to download and run the update.

This, according to Buterin, “is called decentralization.”

The level of decentralization of Ethereum has been, however, questioned, by some of the cryptocurrency experts. They refer to the possibility of collusion between mining pools to control the network. 

Think we missed something? Let us know in the comments section below. 

Share Your Opinion, Write a Comment