Miko Matsumura – Custodial model is a problem for Crypto

Hello! My name is Sophia Dunn. You’re watching Crypto Market News. Custodial exchanges are indeed dominant in the crypto space. They have a number of advantages, including fast and cheap transactions, which are being tracked in the balance of the exchange, instead of being verified by the blockchain. But due to a number of problems, primarily related to security, as well as the transparency of the use of users’ private keys, the issue
of decentralized exchanges is increasingly being brought up. At the beginning of October, Binance, which has the world’s largest volume of trade in all countries, claimed to launch a beta
version of its decentralized exchange (DEX) by early 2019. Today decentralized exchanges haven’t reached full technological maturity yet but they hold the interest of many avid community members. Some of them, such as the founder of Evercoin exchange Miko Matsumura, even think centralized exchanges literally should not exist. To me it’s less about centralization, it’s
more about custody, which is that, you know, acting like an unregulated bank, taking all
the users’ money into one big pocket and then using that pocket to control the market. I think, that’s really dangerous for the
industry. So I feel like the custody problem is the
big problem and I think of course all of those organizations, you know… The organizations are really shouldn’t exist as they are today. This statement Miko made in an interview to CMN during the Blockchain Cruise Mediterranean 2018. What are the pros and cons of the custodial system in your opinion? What exchanges do you prefer – centralized or decentralized? Leave your comments under this video. You’ve been watching Crypto Market News. Subscribe to our channel and don’t forget
to click the bell not to miss the most important news and trends of Crypto. I’m Sophia Dunn. Goodbye.

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