There is a major controversy on the cryptocurrency trading field. While digital assets are built on top of the innovative decentralized networks, trading platforms remain centralized entities.
Another step here is the introduction of decentralized exchanges that are aiming to create a transparent and public ledger. One of such prominent projects is DEEX.
Its CEO Vladislav Sapozhikov says that eliminating the above-mentioned controversy is the main idea behind the startup. The startup was launched back in 2017 after conducting a successful ICO. What happened next has already proved that the DEEX team is moving in the right direction, Sapozhnikov believes.
He stresses that there are many unpleasant questions to the centralized exchanges. One is regular breaches – for instance, recently a leading crypto exchange Binance was hacked. At the same time, there is a lot of doubt that the huge trading volumes of the most exchanges really exist.
“This notorious practice is related to the automated algorithmic trading bots that pump up the volume on the small platforms, copying deals from the large ones,” DEEX CEO underlined.
Interview with DEEX’ CEO
Making a crypto exchange public
Moreover, some exchanges appeared to be connected to the ambiguous projects like Bitfinex’s Tether. Sapozhnikov added that the USDT and other cryptos that are backed by any sort of traditional asset is a bigger “bubble” than anything else.
In its turn, the important concept of DEEX is that “all operations must be recorded on the blockchain, all the transactions must be verifiable”. It allows anyone to see the exact volume of trades, as well as check any single operation. In a decentralized exchange, the possibility of hack is also significantly reduced, as the administration does not manage funds nor store them, but the traders individually.
DEEX is not only a cryptocurrency exchange but an “ecosystem”, consisting of exchange, decentralized messenger, along with the investment fund. Head of DEEX also pledged that the team is going “to introduce some gambling projects” soon.
A fair way to run an IEO
The era of ICOs has gone into the past, and the market has made out another way of raising funds – through the trusted trading platforms. This approach was called the Initial Exchange Offering (IEO). And DEEX is not staying aside, the project has recently launched the proprietary IEO service. The participation process for investors is also decentralized – all the actions are reflected in the blockchain.
It means that anyone may check the actual numbers for IEOs. It is a contrast with leading exchanges that demonstrate “several hundred millions of dollars invested in just one second”, which is “simply impossible”, Sapozhnikov stated. In his opinion, IEO is an even bigger scam than the ICO method.
“The only way to run IEO fairly is using the decentralized exchange like DEEX, where every operation is public,” founder of DEEX noted.
Besides decentralized exchange, another part of the success is the project itself, which has to be well-prepared to attract investors’ attention.