Jared Tate, the founder of Digibyte, had some harsh words for cryptocurrency exchanges recently. He claims they are counter to what Satoshi Nakamoto would have wanted.
Jared Tate has been embroiled in a controversy that has left many in the cryptocurrency community divided. Recently, BeInCrypto reported, Tate publically said that Binance and Tron’s founder, Justin Sun, were “crooks.” Moreover, he said they were operating on borrowed time. In response to the drama, Poloniex decided to unilaterally delist Digibyte (DGB) from its exchange entirely.
Digibyte has a long history of picking fights with Binance. In September, Tate claimed that he was ‘shaken down’ by Binance for a listing. He alleges that the exchange requested $300,000 plus 3% of Digibyte’s entire supply. Tate obviously declined and voiced his outrage on Twitter which started the controversy.
However, new comments by Tate (@jaredctate) is adding more fuel to the fire. He recently took to Twitter to argue that exchanges were distorting the market with their greed and corruption. Moreover, he claims this was against Satoshi Nakamoto’s original vision.
The Digibyte founder claims that Satoshi would have never been in favor of exchanges centralizing control over cryptocurrency assets. It should be noted that exchanges now manage a large portion of all crypto-assets, with Coinbase alone holding over $7B in BTC under its wing and allegedly 25% of all Litecoins in circulation, as BeInCrypto has previously reported on.
Has the industry been hijacked by greed and corruption, as Tate claims? The responses to Tate’s tweet were largely positive, but main feared that the message would fall on deaf ears in the cryptocurrency industry. Many suggested that Tate and others should work to create an alternative: decentralized exchanges to compete with the likes of Binance.
However, decentralized exchanges have had a hard time picking up users and significant trading volume. Moreover, Binance has its own decentralized exchange which makes for fierce competition.
Neither Binance nor its CEO, Changpeng Zhao (CZ), have responded to Tate’s comments thus far.
Images are courtesy of Twitter, Shutterstock.