Building a Crypto Empire: See How Crypto Exchanges Handle Technical Challenges [OmiSoft Case Included]

The cryptocurrency market is flourishing, with a growing need for secure and trustworthy crypto exchanges. As more investors gravitate toward digital assets, technological expertise and innovative thinking become more important. That’s why I offer to explore the success stories of successful cryptocurrency exchanges and the technological challenges they have overcome to learn from their experience!

Coinbase: Scaling New Heights

Stats I think you should know:

• Market Cap according to Yahoo! Finance—37.38B
• It takes 43% of the US crypto market share
• 73M verified users

What's the challenge??

Well, In my opinion, scalability is a challenging issue. Coinbase, one of the most prominent exchanges, had scaling issues during moments of heavy trade activity. Major price changes often caused downtime, irritating customers and affecting their trading experience.

“At the end of the day, one of the most important things to remember is that hypergrowth puts a tremendous amount of strain on your employees.” - Balaji S. Srinivasan

Coinbase solution:

• Switching to Google Cloud Platform and therefore taking advantage of its powerful infrastructure to manage rising demand
• Increasing its flexibility and scalability by implementing a microservices architecture enables more effective resource allocation
• Investing in automated scaling systems that adapt resources according to demand

Kraken: Navigating Liquidity Challenges

Stats I think you should know:

• Trading volume $1.6B per 24h
• It’s in top-10 of crypto exchanges, according to BitDegree
• 10M active users

What’s the challenge?

Kraken had liquidity problems, particularly with less popular coins. Low liquidity made it difficult for customers to complete deals at their requested pricing.

Kraken’s solution:

• Kraken used margin trading and over-the-counter (OTC) trading to increase liquidity for certain assets
• Collaborating with market makers improved liquidity across many trading pairs

Binance.US: Regulatory Constraints and Coin Selection

Stats I think you should know:

• 24-hour trading volume is over $21B
• 65% of Binance.US users own Bitcoin
• in 2023 it had 150M users

What’s the challenge?

Restricted Coin Options Binance.US, the U.S.-based branch of Binance, encountered regulatory limitations that restricted its coin offerings compared to the global exchange.

“Binance agreed to pay $4.3 billion in November to settle with the Department of Justice and the Commodity Futures Trading Commission over illicit finance breaches.” - Reuters

Binance.US solution:

• Ensuring regulatory compliance is a top priority for Binance.US, creating a secure and compliant trading environment
• Even with some restrictions, Binance.US collaborates with regulators to grow its coin offerings while staying compliant.

Gemini: Balancing Compliance and Accessibility

Stats I think you should know:

• 24-hour trading volume is over $87M
• It has around 13M users
• It’s in top 20 crypto exchanges in the world, according to BitDegree

What’s the challenge?

The key challenge for Gemini was compliance. Gemini's compliance-focused strategy assures regulatory compliance, but it may limit access to particular features or assets for users in some countries.

Gemini solution

Gemini wants to achieve a balance between compliance and accessibility. They concentrate on growing their products while adhering to regulatory constraints, which, in my opinion, is very smart.

Venom: Tor Integration for Decentralization

Stats I think you should know:

• 4.9 star rating on the App Store, and the same on Google Store
• Over 100K downloads just for apps
• Most used in Indonesia, the US, and Brazil

What’s the challenge?

Venom is a decentralized exchange software developed by our company. The challenge lay in creating a PancakeSwap-like DEX and decentralized trading app that could become its main competitor at a smart price.

OmiSoft solution

• Tor integration. By leveraging the Tor network, Venom ensures privacy, security, and censorship resistance for users
• AWS implementation and adding wallet as a Chrome extension, Swap, Liquidity Provider, Farming, DAO, Bridge, and Vesting

Learn more about Venom’s Tor integration here.

Final Thoughts

Summing up, I want to emphasize that in the intricate world of cryptocurrency exchanges, obstacles abound. OmiSoft provides solutions that address scalability, liquidity, regulatory compliance, and technological innovation. Get in touch to get a free quote for your cryptocurrency exchange project. Let us work together to create the future of crypto finance!