Pardon for living under a rock, but why are crypto exchanges affected by the mood in the crypto market?
I thought that a crypto exchange functions like a currency market: I put an offer to sell 10,000 EUR for 1 BTC and someone else puts an offer to buy 10,000 EUR for 1 BTC. When orders cross, a transaction happens and the exchange gets a fee, whether in currency or crypto units.
What are crypto exchanges fundamentally doing differently that they are suddenly losing money?
Surely a drop in transactions would make them lose fees and require them to fire some staff, but I expected a "Facebook-like" downsizing, not a full-blown bankruptcy.
I thought that a crypto exchange functions like a currency market: I put an offer to sell 10,000 EUR for 1 BTC and someone else puts an offer to buy 10,000 EUR for 1 BTC. When orders cross, a transaction happens and the exchange gets a fee, whether in currency or crypto units.
What are crypto exchanges fundamentally doing differently that they are suddenly losing money?
Surely a drop in transactions would make them lose fees and require them to fire some staff, but I expected a "Facebook-like" downsizing, not a full-blown bankruptcy.
What am I missing?