Crypto as a Service (CaaS): Key Benefits, Providers, and Use Cases
Dive into CaaS with our guide. Discover insights, benefits, and challenges for informed crypto decisions.
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AlphaPoint CEO Igor Telyatnikov contributes an article to e-Forex magazine examining white label exchange technologies impact on access to crypto markets.
See below for a preview of the piece, and click here to read the entire article for free.
White Label exchange technology: Helping to democratize access to blockchain technology and cryptocurrency markets
One of the biggest beneficiaries of this parabolic climb has been cryptocurrency exchanges. Last month, Coinbase’s IPO had Wall Street salivating. Prior to its stock market debut, the company estimated first quarter 2021 revenue at $1.8 billion – up from just $190.6 million in the same period last year. Net income forecasts were similarly impressive, with estimates as high as $800 million compared to just $31.9 million in 2020.
It’s not just the Coinbases and Binances of the world that are profiting either. CoinDesk’s fourth quarter 2020 report found that the total market for “transparent” spot exchanges reached north of $2.4 trillion in monthly dollar volume last year, compared to just $1.2 trillion in 2019. Elsewhere, regional exchanges serving local markets have also soared. Asian exchanges, for example, averaged nearly $300 million in estimated daily volume in the second quarter of 2020, according to research by AlphaPoint. Estimated yearly revenue averaged roughly $12 million per year per marketplace.
All things considered, it’s a lucrative time to start a cryptocurrency exchange, brokerage or OTC desk. Yet despite the massive opportunity, many entrepreneurs have been unable to reap the harvest. Why? Because it’s exceptionally hard to build an exchange from scratch. To succeed, you must conquer a long list of challenges that includes cost, security, speed, scalability and technical protocols in addition to regulatory requirements, banking and customer service.
Dealing with these issues is expensive and stressful. So while the cryptocurrency market looks more and more like the next Gold Rush every day, the barriers to entry remain high.
The White Label solution
Full stack white label technology removes many of these barriers. In the same way Shopify enables online retailers to plug and play, white label cryptocurrency exchanges are all-in-one solutions that make it possible to launch a fully functioning trading platform in as little as weeks. This is revolutionary because it makes it feasible for entrepreneurs to enter the market without massive venture capital backing. Let’s take a closer look at exactly how.
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