Strategic Partnerships of Cryptocurrency Exchanges

In today’s dynamic business environment, companies can hardly survive and remain competitive without establishing beneficial partnerships. It means that the traditional ‘producer-customer’ approach is no longer viable because the world of business becomes more sophisticated.

The cryptocurrency industry is no different. Here, the decentralized nature of blockchain and underlying concepts of cryptocurrency set the main trends. Since exchanges remain the most well-known representatives of this ecosystem, we want to discuss them in detail.

Have you ever wondered how big-name cryptocurrency brands co-exist? Or why are some exchanges more successful than others? Well, further on, we will look at the bright examples of strategic partnership between crypto businesses and how they transform the industry.

Partnership: The essence and reasons

The idea of strategic partnership came to the crypto industry from traditional business sectors. Put simply, it stands for short/middle-term commercial relations between two companies with a ‘win-win’ idea behind. Thus, both parties enter into a mutually beneficial partnership.

When it comes to exact reasons, each partnership is different. Some companies cooperate to create a brand-new product or service. Others want to expand their audience and attract new customers, or enter a niche market. The partners may also cooperate to conduct fundamental research and issue the latest market report. It always depends on industries, companies, and their goals. Generally, there are five key reasons for strategic partnership regardless of the exact purposes:

  • to lower risks
  • to reduce costs
  • to drive innovation
  • to outperform competitors
  • to deal with regulatory barriers

For crypto exchanges, the main reason behind strategic partnerships is to lure new customers by increasing liquidity, offering new trading pairs or facilitating tokens’ listing.

QUOINE + Binance/CEX.IO/EXX.com (November, 2017)

After the launch of QUOINE Liquid – the world’s first cryptocurrency exchange licensed by Japanese authorities, – its parent company partnered with a few leading exchanges to increase global liquidity for the crypto economy. Particularly, an agreement with Binance was beneficial because of the large trading volume on the platform. All partners have joined Global Liquidity Alliance and agreed to list QUOINE’s native token – QASH.

The goal: to increase liquidity in cryptocurrency markets.

Invest.com + Bittrex (July, 2018)

Specifically for the EU citizens, Bittrex (a global crypto exchange) and Invest.com (a FinTech company) cooperated to create an advanced trading platform. It will work under the Invest.com brand, but will feature the Bittrex engine and the full list of available tokens. The project is still under development and expected to go live later on, but the traders can register on the exchange even now.

The goal: to create a new cryptocurrency exchange platform.

Coinsquare + DLTa21 (July, 2018)

Another global exchange has joined hands with a blockchain investment fund to launch a new crypto trading platform in Japan. The project is known under the DLTa21X name but it doesn’t have any promo pages yet. Companies plan to combine Coinsquare’s technical experience and investment opportunities of DLTa21.

The goal: to create a new cryptocurrency exchange platform.

Huobi + OpenFinance Network (August, 2018)

Huobi is a pioneer cryptocurrency exchange that provides trading services to the users from all over the world. It has recently partnered with OpenFinance Network – a US-compliant marketplace for security tokens. According to Huobi’s strategy, this partnership will facilitate its entry into the US market. Ultimately, this venture may contribute to familiarizing traditional and institutional investors with crypto assets.

The goal: to enter new markets and introduce new token trading opportunities.

Neufund + Binance/BitBay/Malta Stock Exchange (August, 2018)

Neufund is a German equity fundraising company powered by the Ethereum blockchain. It believes that tokenized communities are the future, so the team works hard to cooperate with the leading crypto exchanges. Strategic partnerships with Binance and BitBay will help Neufund list its tokens, and launch a global decentralized exchange for both cryptocurrencies and equities.

The goal: to facilitate purchasing equity tokens with fiat money.

BitMart + SlowMist Technology/TokenInsight (September, 2018)

This partnership is the brightest example of exchange-oriented deals. Being a famous trading platform for digital assets, BitMart partners with less known companies to enhance its technological capabilities, namely:

  • SlowMist Technology should improve the security system of the exchange
  • TokenInsight will provide data analytics and token rating tools to help traders

The goal: to create a more secure and functional marketplace.

Dobitrade + AirWallet (November, 2018)

Due to the insane popularity of ICOs during 2017 and 2018, many new promising startups remain unknown because they can’t raise enough investment. As one of the growing crypto exchanges, Dobitrade helps potentially profitable projects like AirWallet. This brand focuses on decentralized cryptocurrency storage and makes airdrop management easy. Respectively, the trading platform hopes to expand its marketplace by listing AIR tokens.

The goal: to attract new customers and facilitate tokens’ listing.

Potential benefits for the community

While the advantages for cooperating companies are obvious, it’s not clear how customers may benefit from these strategic partnerships. Usually, such initiatives lead to the premium products and services because both businesses want to attract new users and increase profits. Also, partnerships help new startups mature, which may be useful for some industries or the entire crypto economy.

Author: Yash Hirani

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