Decentralized Exchanges Cannot Defeat Centralized Exchanges but Both will Run Side by Side

Centralized exchanges have been over the main screen for years, but decentralized exchanges have got the attention of the masses over recent months. Some experts claim DEXs will take over centralized exchanges, but it’s not like that.

Two Bad News for Centralized Exchanges

The last two weeks have been very tough for decentralized exchanges. The prominent cryptocurrency exchange KuCoin got hacked on Sep.26, and almost $280 million in cryptocurrency stolen away. Due to the termination of deposits and withdrawals, the trading volume over trading has dropped significantly. Today, KuCoin CEO Johnny Lyu said the suspects of the security incident have been identified. He also stated that police and law enforcement officials are helping them in the investigation process.

Another centralized exchange BitMEX became the latest victim of the US regulator. The Commodity Futures Trading Commission has charged the exchange as it has not complied with the watchdog. According to the regulator, it has violated CFTC’s rules and regulations. However, owners of the exchange have decided to fight the case and rejected allegations of CFTC.

After these two incidents, some crypto members are saying decentralized exchanges will ultimately take the place of centralized exchanges. The daily trading volume of top decentralized trading site Uniswap has also reached highs and can be compared with centralized ones. For example, the daily trading volume of Uniswap recorded $1.028 billion on Sep.02, while Coinbase Pro witnessed only $797.5 million.

Comparison

Centralized exchanges have all common features to centralized trading platforms and are improving even better. But centralized companies are not going anywhere, and they will also run side by side with the decentralized ones. xBTC CEO Mark Sgambelluri said Coinbase “and the Crypto.coms of the world will exist, but decentralized exchanges are quickly taking all the features that these centralized exchanges have and making them better and more decentralized, and giving them to the people.”

Sgambelluri further states that decentralized exchanges have the potential to become stronger forces and will have a greater role in crypto space in the future.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

US Congressman Proposes Bill to Regulate Cryptocurrencies and Stablecoins

There are two forces at play here, and one is a decentralized network of cryptocurrencies. On the other hand, centralized finance owned by governments, banks, and financial institutions has converged on making their own tokens to tackle it. But instead of being anonymous and decentralized, they will be highly regulated and controlled entities. Today’s new […]

Amazon Currently has No Plans to Accept Bitcoin Payments

Bitcoin mania is on the rise as bullish signals approach; Bitcoin had seen some very hard days, especially in the past few months when Elon Musk and China were cracking at it, and most of the investors lost their faith in the cryptocurrency. Bitcoin stayed closer and then below the $30K price range and was […]

New Monero Bug Violates Users’ Transactions Privacy

Monero is a privacy-focused cryptocurrency and is already getting some traction from the crypto market and investors alike. But it has been infected with the bug named “Monero,” which consistently bewilders the transaction privacy and credibility for users. The whole point of using cryptocurrency for making transactions and the use of blockchain technology is to […]

UK-based News Agency Claims Amazon is Going to Enable Cryptocurrency Payments

Amazon is the fourth-largest company in the world in terms of annual revenue generation. The retail giant was caught by a cloud of rumor mongers who connected Amazon with cryptocurrencies like Bitcoin. The root cause of the rumors was a series of job postings by Amazon that show vacancies for blockchain and digital payment experts. […]

Polkadot (DOT) Targets $17 on a Bullish Set-Up

Briefly – DOT has recovered almost 40% from its weekly lows, targeting $17. DOT’s price tries to prevent the declining wedge. The RSI overpowers a five-month trend-line. Polkadot (DOT) Price Analysis Though Polkadot (DOT) has been here for not that long, it has enjoyed massive adoption by crypto advocates. That is because of the solutions […]