 | Crypto.com was questioned in allegations as acting as their own market maker. In response, Crypto.com said: “We have an internal market maker that operates on the Crypto.com exchange and that internal market maker is treated exactly the same as third-party market makers that identically facilitate tight spreads and efficient markets on our platform.” This is a very odd statement. First of all, it is a big conflict of interest for an exchange to have their own internal market maker. In addition, this statement directly conflicts with previous statements by internal staff execs and internal staff that CDC who strongly denied it, claiming that CDC doesn't have any internal market making operations. This is raising A LOT of questions about CDC. But further, for anyone who has dealt with CDC, you have realised that they have VERY high spreads. If you don't know, spread is the difference between the offered buying and selling price on the exchange. In fact, CDC probably has the highest spreads on the market. CDC might actually be best known for their high spreads. For them to claim that their internal market maker is necessary for the "tight spreads" is wild and just doesn't hold up. Here are some examples of customer feedback The above video is actually a great one to look into because it has many users who commented also complaining about the spread. And in the video itself, the youtuber shows that Bitoin has a spread of 1.6% on Crypto.com vs 0.2% on Binance. For Dogecoin, the spread shot up to 6.4% vs 0.2% on Binance. We know that Binance larger and would be able to offer lower spreads, but having an 8x increase for Bitcoin and further 32X increase for Dogecoin compared to Binance is ridiculous. I can promise you that these are just some of the complaints. On top of this, for USDC in particular CDC was charging users a hidden 1.5% fee for USDC to USD conversions. This began happening after the USDC depeg and no where was the fee disclosed. I cannot confirm that this is still an ongoing issue.You can view most on that here: https://np.reddit.com/r/CryptoCurrency/comments/123nojp/cryptocom_now_charges_at_least_a_15_fee_for_usdc/ So they have a internal market maker and the market maker is there for tight spreads. But the spreads are NOT tight and the very presence of an internal market maker is very questionable. [link] [comments] |
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