CoinEx will mark its fifth birthday in December 2022. The cryptocurrency exchange has attracted over four million customers from more than 200 nations and regions since its launch, weathering bulls and bears along the way. The previous five years have been amazing for CoinEx and the cryptocurrency industry. Making Crypto Trading Easier is the new brand tagline that CoinEx specifically introduced this year.
One of the few cryptocurrency exchanges that has been operational for five years in a row is CoinEx. What has changed the market the most throughout that time, in your opinion?
The CoinEx staff gave their opinions on how the exchange and cryptocurrency would develop in the future.
More people have benefited from the crypto business during the last five years. Although it is challenging to estimate the overall number of cryptocurrency users, on-chain actions provide us a peek of the enormous user base. According to Etherscan.io, in 2017 there were just over one million distinct Ethereum addresses, and there were over 50,000 daily transactions. Currently, there are well over 200 million distinct Ethereum addresses, and a million transactions are registered daily. The number of unique addresses and daily transactions on Ethereum have increased twenty-fold. A large number of transactions are also carried by new public chains and Layer 2 at the moment, although five years ago Ethereum was the only public chain with smart contracts that had gained widespread use. According to data from DefiLlama, Ethereum made up around 95% of the market’s TVL in 2020, but by 2022, that share had fallen to less than 60%. This shows that, much beyond the twenty-fold increase seen in Ethereum, crypto ecosystems have grown more active and resilient over the past five years.
Applications involving cryptography have advanced quickly in recent years as well. The general public is the goal of new crypto initiatives like DeFi, Play-to-Earn, and Meme. Notably, on-chain data in DeFi is accessible to anyone, which reduces the enormous knowledge gap in traditional finance. Some low-income groups were the first to benefit from Play-to-success Earn’s after it took off, and every user can use the model to spend time earning incentives. A bottom-up culture that connects to users worldwide is meme coins.
Cryptocurrency users are currently spread across globally, not just in one area. For instance, CoinEx’s user base covers the majority of the world’s countries and regions, spanning more than 200 of them.
The market will inevitably service more customers as crypto technology promotes decentralisation and transparency, which will inevitably increase the user base and market size of crypto. As indicated by its user population, market activity, geographic distribution, and widespread adoption, the cryptocurrency sector is evolving from a small community of geeks, speculators, and believers five years ago to one that is increasingly comprised of the general public.
Five years ago, the cryptocurrency market was very different from what it is today. How has CoinEx changed in that time on the market?
CoinEx has experienced a lot of change over the last five years, along with the market as a whole. For instance, CoinEx decided to establish a global presence a few years ago in order to serve users in additional nations and areas and to increase market accessibility. The exchange now offers its services in 15 languages, serving the majority of users globally. We have improved the atmosphere for cryptocurrency trading so that investors may do it more easily and freely in many locations. Additionally, we have made progress with product advancements. For instance, our team praises DeFi’s novel AMM mechanism, which enables small-scale investors to offer valuable liquidity while earning trading commissions. As a result, CoinEx introduced AMM first among CEXs. The exchange’s AMM feature assists users in generating passive revenue in the form of trading fee dividends when used in conjunction with our order book methodology.
We have worked hard to improve our homepage interactions, visual guidance, token listing, and customer services in addition to market expansion and product functionality. This work has significantly improved CoinEx’s usability, which has always been our main goal. For the benefit of more people around the world, CoinEx works to continually enhance its products and user interfaces. The recent fall of FTX revealed the security problems facing CEXs. How do you mitigate security risks?
The biggest problem with FTX is that the exchange lied to users and misused their funds, but that does not apply to all CEXs. CoinEx has promised that all cryptos will be 100% reserved from day one. We will never misuse the funds that users entrusted to us for any reason whatsoever and we make sure that all withdrawal requests are promptly processed. This is why CoinEx has always been able to respond to withdrawal requests on time.
We have never suffered any security breach during the past five years, making us one of the few zero-accident exchanges in the crypto space. We understand that security is of vital significance to exchanges, so CoinEx has adopted multiple security measures. In terms of platform security, we established a security committee, making sure that all technical upgrades and version updates are carried out in strict accordance with the relevant security procedures and criteria. Moreover, CoinEx regularly conducts stress tests and carries out security audits jointly with top blockchain security teams. Concerning asset security, CoinEx adopts the strategy of cold wallet plus multi-signature authentication, both of which are independently developed by our team, keeping user funds safe and secure. As blockchain believers, we are convinced that openness and transparency, which represent the crypto spirit, will help the industry record healthy growth. As such, our team is working on reserve proofs based on the Merkle tree, which will be made fully available to all users. In the future, every CoinEx user will be able to clearly check their asset reserves.
In our view, solid technical capabilities and transparent records are the best way to ensure security. We promise to all our users that CoinEx is backed by strong asset reserves and sound cash flows, which allows us to process your regular withdrawals under all circumstances. Recent incidents in the crypto industry have triggered regulatory concerns. What’s your view on regulation? Is the crypto industry less secure than the legacy financial system?
As the market becomes increasingly globalized and extensively adopted, countries are already preparing to introduce policies on crypto. That said, regulation does not equal suppression. We believe that reasonable oversight can protect users better. For instance, policies aiming to make the industry more compliant and transparent could prevent market manipulation and fraud. Therefore, as a global crypto exchange, CoinEx will respect national laws and regulations, safeguard the interests of our users, keep their funds safe, and provide secure, stable investment services for more global users planning to trade crypto.
We don’t believe that the crypto industry is less secure than conventional finance. Regulatory oversight is merely a way to protect users, not a cure-all. For instance, in the legacy financial system, users also suffer from fraud. In the crypto market, on the other hand, transparent decentralized lending platforms are still fully solvent and running stable, despite the many incidents in 2022. Therefore, we believe that user assets will be kept safe and secure as long as crypto companies stay open and transparent.
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