Crypto trading quality affected by computing power – WFE paper.

A working paper published by the World Federation of Exchange (WFE) suggests that lower computing power negatively affects the market quality and trading costs of cryptocurrencies such as Bitcoin, Ether, and Litecoin. The research tracked the correlation between computing capacity and market quality factors on Coinbase, FTX, and Kraken between January and June 2021. The paper concludes that action should be taken to protect participants on these exchanges and ensure that market structure evolves to allow traders to make informed decisions. The WFE emphasizes the need for awareness of market quality considerations in the growing crypto trading sector. [Extracted from the article]