The crypto market recently hit an all-time high in total market cap as it rose above $3 trillion. This milestone was achieved in a little over a decade with many digital assets scoring the title of best performers in the past decade, but demand for crypto seems still far from reaching its peak as Bitcoin alone outshines the internet in terms of adoption.
In that sense, the crypto exchange platform CoinEx is quickly moving up as a leading platform that grants access to crypto enthusiasts to Bitcoin, Ethereum, DOGE, and other popular digital assets. We sat down with the team behind the platform to talk about its benefits for consumers, the current state of the crypto market, and the future of CoinEx is a fast-growing industry.
Q: Can you tell us more about CoinEx and its platform, what does it offers its users and how is it different from its competitors?
A: CoinEx is a crypto exchange founded four years ago in 2017. Only a few companies have taken root in the industry and have been growing all the way. Data suggest that CoinEx is one of them. We remain committed to our initial inspiration and have maintained a good reputation.
CoinEx now offers a portfolio of crypto-asset services including spot trading, contract trading, margin trading, financial service, AMM, and trading-driven mining. With more than 10 languages available, we are serving cryptocurrency users across the globe.
Technology remains our core strength since our foundation, and our tech team is arguably the best in the industry. No security breaches have been found so far, and that’s why users feel comfortable putting their assets on CoinEx.
While safeguarding our users’ assets, we keep innovation alive. For example, we combined AMM, new infrastructure in DeFi, with an order book to deliver the best crypto trading experience on CoinEx. By keeping a tight grip on projects to be launched, we can filter out inferior projects in advance, and users can avoid these unnecessary traps.
In addition, CoinEx is backed up by ViaBTC Group, which is building a crypto ecosystem that covers exchanges, mining pools, wallets, public chains, DEX, and investment capital. That offers sufficient resources for CoinEx to grow.
Next, CoinEx will strictly control project launch and provide more financial derivative services for users. Meanwhile, we will expand our presence in more countries and regions and work hard to make CoinEx the world’s best crypto trading platform. In addition, CoinEx Token (CET) will be supported in more scenarios, and its value will be seen by more users.
Q: What do you think about regulators’ concerns over crypto products, many claim cryptocurrencies and exchange platforms present a serious consumer threat? Do you think there are more reasons to be worried about this industry than any other in the legacy financial system?
A: It is true that some regulators have stated their concerns. For instance, although the SEC approved the trading of the Bitcoin futures ETF, it rejected the same application for Bitcoin spot ETF. What the regulator is concerned with is not Bitcoin. Instead, the SEC suspects that the crypto asset may be subject to price manipulation by exchanges, which is why it has been very careful with the Bitcoin spot ETF. However, as the crypto market expands and goes mainstream, exchanges will become more regulated and compliant. In other words, there won’t be much space for scams like price manipulation, and the rights and interests of investors will be better protected, which means that the SEC’s concern will perish over the long term.
Plus, the crypto industry is not the only market that’s subject to market manipulation. The legacy financial system, for instance, has also suffered from rat trading. During the GameStop incident at the beginning of 2021, to protect exchanges, brokers, and traders, US brokerages like Robinhood shut down the trading of stocks that include GME so that they won’t be available to individual investors. An even greater shock is that they had also sold stocks without holders’ permission.
What happened to GameStop shows that when they face massive potential losses, conventional exchanges could also tear up the rules arbitrarily and forbid open trading at any moment. In conventional finance, institutions are far more likely to close ranks, which harms the interest of individual investors. Therefore, compared with its counterparts in the legacy financial system, we don’t believe that cryptos pose a greater threat to investors. On the contrary, investors will find that the rule-abiding, transparent crypto exchanges are more reassuring.
Q: And with that in mind, what is CoinEx doing to guarantee its users’ safety?
A: As a former technical engineer, I hold dear to technology. As for the team, security comes first without a doubt. So far, CoinEx has never been hacked for security breaches. Users’ funds can only be safe when the exchange is safe, and we have an array of protection measures for system security, O&M security, and wallet security. Cold wallet storage and multi-signature strategy guarantee asset safety. This explains why CoinEx has never been a target of major hacking. All in all, users can trust in CoinEx security.
Q: What do you think is the main obstacle for cryptocurrencies and crypto exchanges to go fully mainstream?
A: New crypto users may find the industry less accessible than they expected in the beginning. To begin with, compared with stocks and bulk commodities, cryptos involve higher learning costs. Their valuation models are also more complicated than conventional financial products. For instance, it is very challenging to get conservative investors to understand and manage assets like metaverse projects. Hence, they tend to choose a passive approach like a trust or ETF to invest in cryptos, as opposed to trading on a crypto exchange. There are also other challenges. For example, many beginners face high learning costs when trying to use crypto wallets.
Furthermore, in the early days, there had been many crypto scandals due to the extensive, if not chaotic, growth of the industry. As such, some investors would worry that crypto investments may bring them risks or losses. There are also those who hesitate about whether to invest due to the ambiguous stance on crypto assets of certain regulators. Despite this, we believe that cryptos will go mainstream in the future because there will be a solution to all these problems as cryptos gain more recognition.
Q: Many have raised concerns about the lack of transparency in legacy financial institutions, do you think this is one of the reasons people are drawn to crypto and crypto trading platforms?
A: Traditional financial institutions usually close ranks to manipulate the market, and retail investors could only be led by the nose. That’s why financial institutions across the globe were shocked to see retail investors of GameStop poke Wall Street’s bears. These individuals’ complaint about institution players has been going on for a while.
Blockchain and crypto technology is fueling Web 3.0, and many DAOs gather on Discord. As Gen Z grows to be the backbone of the Internet, they are unhappy with Web 2.0 whose data is manipulated by big companies and the traditional financial industry dominated by the institutional players. Free, distributed, and user-oriented cryptocurrency and its exchanges naturally attract this group.
Q: What’s CoinEx vision for the future, are you planning to add new functions for the users? How will crypto exchanges evolve to contribute to crypto adoption in the next decade?
A: Exchanges play an essential role as the cryptocurrency market expands. Only assets in circulation have value. Without exchanges, it would be hard to get the standard value of the crypto assets and to involve users. In the coming decade, crypto assets will continue to go mainstream, and a compliant and transparent exchange can lower the barrier to entering the market so that users can accept and trade cryptocurrency faster.
This is the goal of CoinEx: to deliver the best user experience by providing the best financial products & services and keeping the assets safe. Meanwhile, CoinEx aspires to be the world’s No.1 cryptocurrency trading platform with a global presence. We are determined to grow with the crypto-asset industry.
Q: Finally, should people trade cryptocurrencies or simply hold them? What is the trend of the cryptocurrency industry?
A: It depends. In my opinion, assets like Bitcoin are better for long-term holding because their value is well recognized by all. As for other popular assets, it is up to users to choose between long-term capital gain or short-term use-value.
The crypto asset industry will see its maturity and specialization step by step. Compared with traditional finance, the rich derivatives of crypto assets promise a lot of room for growth. However, these financial products may be more suitable for professional investors. My advice is that investors in the industry should keep learning the technology and enriching their investment experience, which all take time. Growing together with the industry still in its infantry, investors will benefit the most from its unlimited potential.