Potential to Become the Largest Exchange

Recently, CNBC released an article stating how Nasdaq, the second largest exchange in the world, is open to adding cryptocurrencies into their exchange. This comes right after the news of Binance being one of the most prosperous online exchanges in the world. See our previous article about Binance. Market adoption comes at no surprise, but having one of the most trafficked exchange incorporate cryptocurrencies would only result in faster adoption.

This news comes along with the fact that Gemini (a cryptocurrency exchange) is partnering with Nasdaq to monitor it’s trading activities on its platform. Gemini will be using Nasdaq’s SMARTS Market Surveillance to try to minimize price manipulation on it’s markets. Interests from traditional exchanges and governments comes as new regulations are being discussed The continued interest helps pave way as Nasdaq CEO Adena Friedman mentioned how she’s waiting for regulations to be ironed out before implementing any changes.

Quick history of NYSE vs NASDAQ

The main difference between the two largest exchanges in the world is the trading principle with one being an auction market while the other being a dealer’s market.

The NYSE is an auction market which has buyers and sellers auction their price and buy from one another on the trading floor in New York. A trade occurs when both a buyer and seller agree on a given price.

On the other hand,Nasdaq is a dealer’s market, where market participants buy and sell through a dealer or otherwise known as a “market maker”. The market maker provides liquidity and transparency by displaying the prices electronically at which they will buy and sell. By having an online marketplace, existing cryptocurrency traders can also easily migrate over to a new platform in which they are already used to.

Why NASDAQ?

Despite being the second largest exchange (in terms of market capitalization), NASDAQ currently has the largest trading volume in the world. NASDAQ also has a lower entry price of $50,000 to $75,000 compared to the NYSE (largest exchange in the world) with entry fees of up to $500,000. The NASDAQ is also known to house more volatile and growth oriented - especially in the high tech market which would make it a perfect fit for cryptocurrencies.

Cheers,
The Blockchain Musketeers

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