How CEXs gain users' trust (Bilingual Space: English&華語)

Participants:

Hosts:

Woody from NEST

Ray from W

Exchanges:

Lennix: Head of Financial Market of OKX

Alicia Kao: Managing Director of KuCoin

Gracy Chen: Managing Director of Bitget

Special Guests:

Jack孔：Nano Labs Founder

Du Jun: Co-founder of Huobi Group

KOLs:

Mr.0，比特币子琪, Moonlight, LinkZDAO

Conference recording:

https://twitter.com/i/spaces/1mnxeRZgBDbKX?s=20

Questions to guests

What’s happening is that people are losing trust in centralized exchanges, but also people are losing trust in each other. So, with that in mind, what do you think you are going to do to regain people’s trust?

Alicia: The Kucoin exchange has always interacted with its users in a relatively smooth manner. Then in this case it has slowly built up a more balanced system and is more transparent. At the same time, they have 55 different hot and cold wallet addresses, and all the collateral or all the funds can actually be checked in a more transparent way. In addition, within a month Kucoin can make all the reports public and the data on the chain is transparent, so it is a smoother and more transparent exchange.

Firstly, the Kucoin team has a hacker-proof team with very strong security protection. In addition, for customers who have not used decentralized wallets before, if they need a tutorial or guidance, Kucoin is willing to help them with the configuration of decentralized wallets and centralized wallets, on the other hand, to give them more security.

Lennix: Not only OKX but the whole industry should go out and find ways to improve the transparency of the whole industry. POR for example is something that every exchange should be doing. That’s actually a very big step for the whole industry. There are a lot of things that need to be transparent, such as staff management, and capital funding. Then there are a lot of philosophical or methodological rules, but how to improve the transparency of the industry through a more purely mathematical or technical approach is something that we are all trying to do.

Gracy: Bitget has done three main things in the past. The first is the establishment of a $5 million fund to help users recover from FTX. The second was to respond to CZ’s call for a POR to be announced in three weeks to a month or so. the third was to increase the insurance fund from $200 million to $300 million. In the future, Bitget will do more in terms of transparency for its users, and more actions will be taken to let them know.

What is the future of the market? Because now there will be a vacuum in FTX, how do you see this vacuum and this market share?

Lennix: A lot of centralized exchange actually has some very good features, but behind this feature, is it a mathematical model that can really go into operation? Is it really possible to go up to 10 percent annualized? This is debatable. In addition, OKX hopes to combine centralized and non-centralized together to make the whole ecosystem more transparent, so that more people can come over and use some of the functions of centralized, but at the same time, they will still get decentralized security.

Based on the state of FTX, compared to some of the open regulations in Singapore and Hong Kong, do you think this future government regulation will create a very good boost to this whole centralized exchange?

Jack: Hong Kong is actually more friendly to the cryptocurrency industry; Singapore has recently shown that it also does not want speculation. The overall is welcome to start up. Although Hong Kong is more bullish on FTX, FTX has been out of Hong Kong for many years, so the impact is not that great. The Hong Kong government will do a good job of communicating and finding a more appropriate path that will protect the safety of users and also provide two-way protection for centralized exchanges to develop their business in a compliant manner.

Did you find any problems with FTX or other teams when you were talking to them?

Jack: What I felt from my visit to FTX was more positive. Because FTX does not recommend working from home, it is still more efficient. Also, FTX has real headquarters. However, I warned my friend to be a bit cautious as the interest rates on FTX were rising for no reason at the time.

In the East and in North America, there is a different perspectives on how things are seen. In your perspective, how do you see such evil things as FTX and how CEX should go about gaining the trust of its users?

Mr.0: What we learned the most was education and understanding the importance of transparency. Then people were also very active in following some of the moves that CEX was making in terms of margin.

Which CEX instruments are you currently using for trading? Have you moved to DEX?

Mr.0: I use Coinbase, a CEX, and Uniswap, a DEX.

What do you think is the future trend for CEX?

Mr.0: There will be more of this regulation coming out in the future. And then we’re going to get some education from all of this about the protection of our own property.

How do users see leverage?

Mr.0: The West also has people doing leverage.

Summary:

W: There is a crisis of trust when the whole web3 actually turns into a dark forest. We do not understand each other, we do not know each other, and there is a gap of information between each other, and who will fire the first shot. In this situation, I think the better the communication between the East and the West, between our own communities, projects, and projects, exchanges, and exchanges, the more transparent the communication, and the more confidence can be gained back in a short period of time.

Woody: We hope that through this platform, we can let people know some of each other’s views, that is, there may be something that means one thing at the English level, but a lot of preferences, some people put this on Chinese media and turn into another meaning, which can cause some misinformation. This platform can also break down information barriers and be more transparent.

Free discussion

W asked Jack: Binance is currently the largest exchange and has a much larger volume than the second place, would you see this as a good thing from a user’s point of view?

Jack: There were several important moments in time when Binance was able to achieve its current success. The first was its withdrawal before the Chinese government regulated it, which gave it more room to survive than the local Chinese exchanges would have. The second one is the new generation of smart contracts represented by Ethereum, which has driven the whole blockchain market to further activity. This is a natural choice for the market. In the next phase, I think that the market share of Binance will be taken up from two dimensions, one dimension is the competition in this track of the original NFT; the other is that I think there will be a bigger market in the future. In the future, who can become the dominant player in the track, I think it is completely uncertain at the moment.

Woody asked比特币子琪: How do you see the CEX or DEX?

比特币子琪: Centralization involves non-transparency, market manipulation, and even misappropriation of user funds, both as a referee and as a player this kind of behavior, to the user to do real justice and transparency. The second point is that unless every asset of an exchange is fully disclosed, even if it is transparent or notarized, or certified, some aspects can be hidden, and it is not necessarily true that there is no misappropriation of the user’s assets. The constant questioning of exchanges by users is a step forward for the industry as a whole, and once again what users know is that they are responsible for the security of their assets themselves.

Alan asked Jack: Having traveled to so many countries around the world, from the earliest miners to chips to the whole ecology, and recently about CEX and DEX, I believe that the laws and regulations of each country are progressing. As an ecological leader, what are your future feelings and outlook on the entire trading ecosystem and the refinement of its development?

Jack: Cefi has centralized management and operations, which makes the user experience better. Defi is more on the technical side and does not have a good education and experience for the average user of this. In the future, it should be possible to integrate the two points.

Alan asked Du Jun: What does the future of Binance look like in terms of overall asset security, and how the whole ecosystem is built?

Du Jun: It should be regulated on a technical and regulatory level rather than an ethical one, for example, Japanese exchanges are relatively safe. If you want to gain the trust of users, you can take this 100% reserve proof or go under regulation. As for DEX, the old exchanges are more reliable. Solving credit problems is an ongoing process.

Jeremy asked Jack and Du Jun: The last bull market was caused by the amount of money that came in from institutional entry, which then caused this wave of the bull market. A KOL also said some time ago that the next wave of bull market will be regulation, especially with this announcement on Hong Kong 31. Will the next wave of bull market be invalidated by this FTX thing?

Jack: From the current stance of the US government, the Hong Kong government, and various local governments, except for Singapore, where the government is more conservative and does not want speculation, the regulators in other places are generally saying that they want to introduce regulation to protect investors. So, from a simple point of view, I think this is a good thing in the long run. The reason is that it will facilitate better management of user margin by these trading platforms and by the government; better speed up the introduction of a regulatory system; better proof of reserves for centralized exchanges and better transparency.

Du Jun: I don’t think regulation is not a bad thing, don’t go afraid of regulation. Only with the regulation will there be a lot of money coming in. So I don’t think there will be a problem.

Woody asked Du Jun: After the introduction of regulation, will the decentralized coins be essentially the same as the money printed by the traditional state?

Du Jun: But the essence of the product hasn’t changed. In fact, like Binance, they only offer services for products like Bitcoin without changing this initial thing. I can go about my business completely unregulated.

LinkZDAO asked Du Jun: Do you think this current regulation is a short-term reprieve, or will it be so in the long term?

Du Jun: In fact, 90% of people come, not for regulation or anything, just to buy coins and then make money. So you have to research the company first, read the earnings report, and do field research. This is no different from traditional investment.

Jack: Don’t use leverage, just hold the token you like!