How does a Cryptocurrency Exchange Start

Helga

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#1
I understand the basics of an exchange and how they work, but I am confused as to how one initially begins.

For example, in order for an exchange to function, there needs to be both bids and asks simultaneously. If there is no asks, then no one can buy that specific cryptocurrency therefore there is no volume/trades.

Would an exchange have to simply front some money and place ask orders themselves in order to get the volume jump started and then having the market take over?
 

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