Cardano temporarily stuck on exchanges. Why and what is a possible solution?

If you follow the news from the Cardano ecosystem, you know that hardfork (Shelley phase) happened on 29 July. Since then and up to this date most of these exchanges disabled both Deposits and Withdrawals, it means they didn't implement the hardfork changes yet. On 1 August Charles Hoskinson said in his video that 3 of 15 exchanges upgraded (twitter link) and I checked recently Binance, Kucoin, Bittrex, Cointiger (those where I have profiles) and deposits/withdrawals are still unavailable.

Why it has to take so long, to make holders suffer (at least those who need to transact, buy and sell)? Especially now that with Shelley, staking became available and many will want to get additional ADA stake asap, in order to receive the rewards on 18 August (first day of the first rewards to be distributed).

Crypto-enthusiasts like to say "Not your keys - not your coins". In Daedalus wallet update to Shelley wallet is super easy. But not everyone is comfortable for this, and even among Cardan active users, some got "stuck" in the exchanges.

That's bad. It will be solved anyway. For many people, that's not a big deal to wait. But still I decided to come out with some suggestions to improve the situation.

I. Use alternatives to "top" exchanges

For example, there is a small exchange Richamster it's so small, that it's even not on Coinmarketcap, but there is ADA listed.

I know those guys, as when I had crypto-bar last year, they organized meetup there. I spoke with their CEO and right after hardfork they upgraded. I was surprised for such speed, so I sent a transaction to my account and it worked. Then I sent more ADA there, and sold some (I needed fiat, and it's the only exchange which had ADA pair with UAH (Ukrainian Hryvnia)

So I have only one question for major exchanges: If a small exchange can upgrade so fast, why can't you?

I'm sure there exist other exchanges which upgraded fast. Even if small exchanges have small liquidity, it's still possible to buy and sell. Even if volumes are small. That's why I use them as I consider this as a part of decentralization.

II. Creation of Cardano DEX

I think that's a matter of time. Moreover with Goguen and when tokens, assets will be released on Cardano - definitely there will be Cardano DEX.

III. Cardano OTC

OTC (Over-The-Counter), I suppose, will become also a factor in the Cardano ecosystem, especially when the amounts of transacted currency will be high.

But I think even on a small amount OTC-service might appear, and it can be achieved based on Cardano Forum. The reputation system and the history of accounts can be the guarantee for safe peer-to-peer exchange, or a safe way to choose escrow (mediator in transaction).

For example you urgently cash, or BTC - then you can address it on Cardano forum (which will of course will grow my the quantity and geographical diversity of users) and get cash fast (if you find somebody in your area) or BTC(USDT,ETH).

And what are your thoughts?

Recently I choose to delegate ADA with AZUR staking pool and simple video guide. And what about you? Already staking?

Comments 3

@flod exchange business is a business of trust - so I would prefer to trust my money to the well and long-time established exchanges, with good records of solving my problems, like bittrex, than nice, but unexpierienced guys :)
Better sell your ADA on the exchange now, while the price is still high, then buy it more back, after the down correction

04.08.2020 05:49

@yefet Thanks for reply. But it seems you just don't know the staking system of Cardano. If you stake with some pool - your money don't leave your wallet. So no additional risks. Moreover exchanges are hacked more often.
And if you mean smaller exchanges, like I mentioned, there is no need to keep there money, you can just sell/buy

And thanks for the tip, yes I agree there are such waves of correction which is possible to get.. but now I don't have much funds for this (had some big expenses recently). Maybe later)

06.08.2020 19:29