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.
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.