(Bloomberg) -- Some big cryptocurrency exchanges may be starting to regret snubbing small coins.
Bitcoin is holding up better than smaller digital coins in this year's downtrend, but these tokens are boosting crypto exchange volume in a languishing market, according to a report by research firm Diar Ltd., using data by CoinApi.
“Traded volumes on Coinbase, Bitstamp and Kraken have seen steep declines,” the report said. “Meanwhile, token exchanges outside the U.S., that have lax regulator scrutiny, are now seeing an increase in traded volume,” the report said.
Exchanges based in the U.S. have largely stuck with bigger coins like Bitcoin and Ether as regulators have said tokens sold in initial coin offerings are likely to be considered securities, and so trading platforms offering them are subject to tighter regulations.
U.S.-based Coinbase and Bitstamp offer five coins, while Kraken lists 24, compared with hundreds of trading pairs on the OKEx and Binance exchanges.
Coinbase is adding exposure to more digital assets with Decentralized Bulletin Board Paradex, which as of last week had 19 cryptocurrencies, according to Diar.
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To contact the reporter on this story: Camila Russo in New York at crusso15@bloomberg.net
To contact the editors responsible for this story: Michael P. Regan at mregan12@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Andrew Dunn
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