I've tried to address those problems @Empirical1.2
If assets are collaterized, exchanges can't keep up with deposits unless they place collateral of their own, which I think they won't.
As for shared orderbooks, it can happen if either they use collaterized assets like the MPAs we have or use all the same asset (ie exchange joins OpenLedger and also adopts OPENBTC as their asset). I guess it's really up to them to choose what we have to offer, but collaterized assets are out of their reach imo. Otherwise they would always need twice the amount of deposits they have, which they might not be able to keep up with.
Now, if they received some kind of interest for their collateral that could be a different history. They could try go for it as it would be another revenue source.
So as a customer of an exchange that is using BEN you are still exposed to the same risk of that exchange being hacked, seized or running away with customer funds?
If so it seems like the main advantage would be accessing a shared orderbook, however the BEN orderbook is probably currently thinner that most exchanges you are approaching?
Kind of, you can still trade them, funds aren't locked up, ever. However, they would most likely loose value if something happens to the exchange. That's why we need shared order books, it's something very important. If an exchange looses funds it doesn't matter because it can still be traded, used and redeemed by any other service or user.
Without that, UIAs can be dangerous and don't really change anything other than you not having your funds locked, ever. But that doesn't guarantee they won't loose value because they're dependent on the service that issued them.
We would either need them to use BitAssets or a common UIA like OPENBTC for example. Other than that it doesn't really change anything.
Yes they all have bigger volume and orderbooks than us, though they're a few of the smallest exchanges. C-CEX was the biggest one I approached.
I think it's too early for them to join us as we still don't have that much to offer. The only ones that would benefit the most would be exchanges with volume inferior to $10k or $5k, which seems really small. But if we can get 5 exchanges with this small volume and all use the same asset, that's $20-50k daily volume + network effect. Then we could try and go for exchanges with $20-30k daily volume. Plus two of those and we already would have $100k. And so on. I think from that point onwards we wouldn't even need to chase any more exchanges as all the new and smallest ones would want to join us and we would "outcompete" others and see a steady increase of volume. It would really just be a matter of time till we get to $250 or $300 and so on.
I think that should be the plan. Start off with 5 to 10 of the smallest exchanges. Most likely to join us and it's a win win. Then the more we have with us, the easier it gets to get others. If we had all of the smallest exchanges under the wing of OpenLedger, network effect would be huge, we would be on multiple countries plus now competing directly with bigger exchanges which could really join or not but I guess it's just a matter of time till we surpass them, once again proving they're better joining us
It would basically be a snowball.
But for that they would all need to use the same assets.
I think if for 3 months or so we could find a group/taskforce, whatever to dedicate to this we could really do something! But we would need people with technical expertise and at the same time can sell a product.
Coinsetter - $450
bitebi9 - $600
Coinsquare $670
Bitorado $1100
NIX-E $1450
Bitcoins Norway $1700
CoinTrader $2200
meXBT $3000
LEObit $3000
BitKonan $5000
LEOxChange $6700
Cryptopia $7100
Bleutrade $7500
Negocie Coins $10000
LiteBit.eu $11000
CAVirtex $11600
YoBit $17500
C-CEX $22000
If we get the lowest ones up to $3k it would be +$13k. If we got them up to $10k it would be +$50k. The total volume of those exchanges is superior to $100k. Imagine that. It will only take the first ones. Then we can use them as examples for others to see how huge they could be. Imagine approaching a $10k exchange and say, well, if you join OpenLedger you get all this benefits plus a volume of $100k. You think they wouldn't join?