In an industry that prides itself on decentralization, a recent survey conducted by cryptocurrency exchange Kraken found that Americans value trust.
Kraken surveyed 1,000 crypto users in the US and found that 79% are willing to pay “somewhat higher fees” to buy crypto through a trusted exchange, rather than saving cash on an untrusted exchange.
According to Mark Greenberg, Kraken’s global head of consumer, the data shows that U.S. crypto users are not chasing minimum barrel fee defaults. Rather, he said, the survey suggests Americans choose their venue through a variety of factors. decryption.
“As the market matures, it shows that investors value long-term confidence over short-term savings,” he said. “People want to know that their assets are safe, that the platform can be trusted, and that they can access the tools they need without unnecessary complexity.”
Among survey respondents, 16% said “fees” were the most important factor when doing business on an exchange, and 26% cited “reliability.” This was followed by “security features” at 14% of US crypto users.
FTX was an international exchange, its collapse 2022 had similar effects on companies domestically and internationally, creating an atmosphere of regulatory scrutiny that lasted into the final days of the Biden administration. In some ways, Kraken’s research suggests that the public has not forgotten that the exchange’s former CEO stole $8 billion worth of customer funds.
Kraken is reportedly preparing to list, but it’s unclear how much the exchange will rely on fees for revenue. In the second quarter of this year, Coinbase revealed that transaction revenue accounted for 53% of total revenue at $764 million.
Still, Kraken’s research shows Americans don’t place much importance on regulatory compliance. Only 6% of respondents said it was the biggest factor in choosing an exchange. This was the least common factor, with 7% citing “customer support.”
Kraken’s platform faces the following situations: serious bug However, its biggest competitor, Coinbase, suffered a massive data breach earlier this year. The fraud, which stems from an alleged bribery scheme in India, covers: lawsuit. In disclosing the breach, Coinbase initially estimated that it could cost the exchange as much as $400 million.
A study by Kraken found that most crypto users in the US maintain accounts on multiple platforms. About 44% said they use two exchanges, and 26% said they use more.
Respondents said that while fees are a factor, similar amounts indicate the use of multiple accounts to increase access to digital asset listings, spread platform risk, and separate trading and long-term investment activities.
The move likely reflects the growing use of decentralized exchanges like Uniswap, which use smart contracts to allow people to trade assets without relying on intermediaries.
According to one study, decentralized exchanges generated $478 million worth of trading volume last month, an increase of 259% compared to $133 million a year ago. dune dashboard.
In fact, the race between decentralized exchanges Hyperliquid and Astar is a draw. considerable attentionBinance co-founder Changpeng Zhao added more spectacle. utter aloud His support for the latter project built on the BNB network.