press release
PRESS RELEASE. In December 2022, CoinEx will celebrate its fifth birthday. Since its inception, the crypto exchange has gone through bulls and bears and attracted over four million users across more than 200 countries and regions worldwide. For both CoinEx and the crypto space, the past five years have been extraordinary. In particular, this year, CoinEx launched an all-new brand slogan: Making Crypto Trading Easier.
The CoinEx team shared their views on the future development of crypto and the exchange.
- CoinEx is one of the few crypto exchanges that has been running for five straight years. In your view, what is the most prominent change in the market over that period?
During the past five years, the crypto industry has served more people. Although it is difficult to count the total number of crypto users, we can get a glimpse of the massive user base through on-chain activities. According to Etherscan.io, the number of Ethereum unique addresses barely exceeded one million back in 2017, and the number of daily transactions stood at about 50,000. Today, there are well above 200 million Ethereum unique addresses, with approximately one million transactions registered every day. On Ethereum, both the number of unique addresses and daily transactions have gone up twenty-fold. Additionally, five years ago, Ethereum was the only public chain with smart contracts that was widely adopted; right now, new public chains and Layer 2 also carry a huge number of transactions. Data from DefiLlama suggests that Ethereum accounted for roughly 95% of the TVL of the market in 2020, and that percentage has dropped to less than 60% in 2022. This indicates that crypto ecosystems have become more active and robust during the past five years, going far beyond the twenty-fold increase recorded by Ethereum.
Right now, crypto users are no longer concentrated in one region; they are everywhere. For instance, CoinEx’s user base spans over 200 countries and regions, covering most places in the world.
In recent years, crypto applications have also achieved fast progress. From DeFi through Play-to-Earn to Meme, new crypto attempts target the general public. It is noteworthy that on-chain data in DeFi is open to all, which mitigates the huge information gap in conventional finance. Following the boom of Play-to-Earn, some low-income groups were the first ones to profit, and every user can spend time earning rewards via the model. Meme coins are also a bottom-up culture that relates to global users.
As crypto technology advocates transparency and decentralization, the market is bound to serve more people, which will naturally expand the user base and market scale of crypto. Five years ago, crypto users were a small community of geeks, speculators, and crypto believers, but now, the industry is becoming a more public arena, as evidenced by its user base, market activity, geographical distribution, and wide adoption.
- Today’s crypto market drastically varies from what it was five years ago. How has CoinEx evolved in the market during that same period?
During the past five years, CoinEx, together with the market, has gone through a lot and witnessed many changes. For instance, a few years ago, CoinEx decided to build a global presence to provide services for users in more countries and regions, and to make the market more accessible. Today, the exchange has made its services available in 15 languages, covering most users worldwide. We have created a more enabling crypto trading environment for investors in different places, helping them benefit from crypto services freely and effortlessly.
In addition, we have achieved innovations on the product level. For instance, our team appreciates the innovative AMM mechanism in DeFi, which allows retail investors to provide effective liquidity while earning trading fees. As such, CoinEx became the first CEX to introduce AMM. Coupled with our order book model, the exchange’s AMM feature helps users earn passive income in the form of trading fee dividends.
Apart from market expansion and product functions, we have also worked hard on improving our webpage interactions, visual guides, token listing, and customer services. These efforts have made CoinEx much more user-friendly, which has always been our top priority. CoinEx strives to keep improving its products and user experiences to help more users worldwide complete each crypto transaction with ease.
- 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.
- This year, CoinEx launched a new slogan: Making Crypto Trading Easier. What is behind that slogan?
It has always been our belief that decentralized crypto technology is born for the general public. It brings people a new financial market that’s open, free, and transparent. In this market, everyone has access to financial services.
Traditional financial services, on the other hand, are not accessible to all. Today, 1.7 billion people remain unbanked and are unable to get financial services from traditional institutions; however, 1 billion of those 1.7 billion people have mobile phones. This means that it will only take a few minutes for them to register a CoinEx account and own a crypto wallet, which will allow them to join a global investment market that’s worth hundreds of billions.
Although crypto technology is bringing us accessible finance, as a new invention, it comes with learning costs. For instance, asking a crypto beginner to use a DEX will only cause misunderstandings in the crypto industry. Furthermore, many crypto companies now focus on providing high-end traders with complicated services, which can be confusing to retail investors.
The way we see it, the industry should never go against its original motivations and become an inaccessible investment market with high costs. This is why CoinEx hopes to build a bridge linking users to the crypto world. We strive to become the gateway for users to the crypto space and help them trade crypto with ease. CoinEx provides easy-to-use crypto services for all potential crypto users who may have various language preferences, crypto understanding, and investment capacity, as evidenced by our belief in Making Crypto Trading Easier.
- Could you share CoinEx’s roadmap with us? In your view, what new trends will appear in the crypto industry over the next five years?
During the past five years, CoinEx has gained the trust and support of over four million users. In the next five years, we will remain grateful, strive to provide easy-to-use crypto trading services, and build a secure, fair and transparent investment environment.
We are fully aware that such ease of use is not achieved overnight. Rather, it takes continued efforts over the long term. In the future, CoinEx will keep on improving its products and services to meet the crypto demand of users from more countries and regions. Meanwhile, we will also optimize our product mechanisms, operating procedures, and visual guides to help all users spot the target function right away and trade/invest in crypto through the easiest steps. Furthermore, we will also adopt more solid security measures to honor our commitment to users.
We believe that as crypto becomes more widely adopted, the performance of blockchain infrastructures will progress, which will help the industry carry more users and large trading volumes. Meanwhile, the market will witness constant innovations, and there will be increasing new mechanisms and applications in categories including DeFi, GameFi, DAO, NFT, and Web3. Going forward, CoinEx will help more global users join the crypto space, seize market opportunities, and witness a fresh new crypto future together.
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