A CRYPTO EXCHANGE TACKLES CEX ISSUES, PLEDGES TO SHARE REVENUE WITH ITS USERS

Last updated: June 19, 2025, 18:26 | Written by: Brian Armstrong

A Crypto Exchange Tackles Cex Issues, Pledges To Share Revenue With Its Users
A Crypto Exchange Tackles Cex Issues, Pledges To Share Revenue With Its Users

For years, centralized exchanges (CEXs) have reigned supreme in the cryptocurrency world.Boasting user-friendly interfaces, robust liquidity, and a sense of dependability, they've become the go-to platforms for both seasoned traders and crypto newcomers.However, beneath the surface of convenience lie inherent issues that threaten the very principles of decentralization that the crypto revolution was built upon. A crypto exchange tackles CEX issues, pledges to share revenue with its users tax agency flagged that the industry isn t paying its fair share. on the Treasury Department and InternalFrom opaque operations and security vulnerabilities to high fees and a lack of user autonomy, the cracks in the CEX armor are starting to show.Now, a pioneering crypto exchange is stepping up to challenge the status quo, addressing these fundamental problems head-on. For an extended period, centralized exchanges (CEXs) have played a pivotal role in cryptocurrency trading, offering traders dependability and robust liquidity. These platforms have been the go-to choice, with users trusting CEXs to safeguard their assets, appreciating user-friendly interfaces, and benefiting from an ever-evolving array of innovative features. Yet, centralized exchanges are notThis isn’t just another exchange launch; it's a mission to build the next generation of digital asset platforms, one that prioritizes user empowerment, transparency, and a truly shared financial future. Valid for new users who make a cryptocurrency purchase on Coinbase. Limited while supplies last or Coinbase revokes this incentive at its sole discretion. Coinbase reserves the right to change the terms, eligibility criteria, and payouts for all incentives at any time, for any reason.By pledging to share revenue with its community and developing a comprehensive Web3 ecosystem, this exchange is setting a new standard for the industry, aiming to serve billions worldwide and redefine the future of crypto trading.

Understanding the Dominance and Drawbacks of Centralized Exchanges (CEXs)

Centralized exchanges have long been the cornerstone of the crypto market.They offer a familiar trading experience akin to traditional financial markets, making them accessible to a wide audience.This ease of use, coupled with significant liquidity, has fueled their popularity. Liquidity, in this context, refers to the ease with which an asset can be bought or sold without significantly affecting its price, and CEXs typically offer much greater liquidity than their decentralized counterparts (DEXs).

The Appeal of CEXs: Convenience and Familiarity

CEXs provide a range of features that attract users:

  • User-friendly interfaces: CEXs offer intuitive platforms that are easy to navigate, even for beginners.
  • High liquidity: Large trading volumes ensure that orders are executed quickly and efficiently.
  • Fiat currency on-ramps: Many CEXs allow users to buy crypto directly with fiat currencies like USD or EUR, simplifying the entry point into the crypto market.
  • Advanced trading tools: CEXs often provide sophisticated tools for technical analysis and order management, catering to experienced traders.
  • Customer support: CEXs typically offer customer support channels to assist users with any issues they may encounter.

The Shadows Cast by Centralization: Issues and Concerns

Despite their advantages, CEXs are not without their flaws.The centralized nature of these platforms raises several concerns:

  • Security risks: CEXs hold large amounts of user funds, making them attractive targets for hackers. Centralized cryptocurrency exchanges (CEX) continue to play a crucial role in the crypto ecosystem, serving as main platforms for the purchase, sale, and exchange of cryptocurrencies. Despite the growth of decentralized finance (DeFi), centralized exchanges remain essential due to their ease of use, liquidity, and established infrastructure.History is rife with examples of CEXs being compromised, resulting in significant losses for users.
  • Lack of transparency: The inner workings of CEXs are often opaque, making it difficult for users to verify the fairness of trading practices and the security of their funds.
  • Centralized control: CEXs have the power to freeze accounts, censor transactions, and manipulate markets, raising concerns about censorship and potential abuse of power.
  • Regulatory uncertainty: The regulatory landscape surrounding CEXs is still evolving, creating uncertainty and potential risks for users.
  • High fees: Trading fees on CEXs can be significant, especially for frequent traders.

The fact that a tax agency recently flagged that the cryptocurrency industry isn’t paying its fair share highlights another potential area of concern regarding the overall accountability of some crypto entities.

A New Paradigm: Tackling CEX Issues Head-On

The limitations of traditional CEXs have paved the way for innovative solutions that prioritize user empowerment and decentralization. Crypto.com recorded a staggering $1.5 billion in revenue during 2025, with CEO Kris Marszalek attributing the growth to strong trading activity from its 140 million users. The exchange s operational efficiency helped generate approximately $1 billion in gross profit after covering salaries and other expenses.A rising crypto exchange is taking a bold step to address these issues by embracing a Web3 ecosystem and pledging to share revenue with its users.

Embracing Web3: A Decentralized Future

This exchange is building a comprehensive Web3 ecosystem, leveraging the power of blockchain technology to create a more transparent, secure, and user-centric platform. A major cryptocurrency exchange is nearing the completion of its Web3 ecosystem with its utility token and is taking a daring step by pledging to shareThis involves:

  • Decentralized Wallet Integration: Allowing users to seamlessly connect their own self-custodial wallets, giving them complete control over their assets.
  • On-Chain Services: Providing access to on-chain services such as staking, lending, and borrowing, empowering users to participate in the DeFi ecosystem directly.
  • Utility Token Integration: Utilizing a native utility token to power the ecosystem, providing users with benefits such as reduced fees, governance rights, and access to exclusive features.

Revenue Sharing: Rewarding the Community

One of the most groundbreaking aspects of this exchange is its commitment to sharing revenue with its users.This approach aligns the interests of the exchange with those of its community, fostering a sense of ownership and participation.The specifics of the revenue-sharing model are still being developed, but the underlying principle is clear: to reward users for their contributions to the platform's success.

Example: Imagine a scenario where a percentage of the exchange's trading fees is distributed proportionally to users who hold and stake the exchange's utility token.This would incentivize users to actively participate in the ecosystem and contribute to its growth.

The Potential Benefits of Revenue Sharing and Web3 Integration

The combination of revenue sharing and Web3 integration offers a multitude of benefits for users:

  • Increased Transparency: Web3 technologies provide greater transparency into the exchange's operations, reducing the risk of manipulation and fraud.
  • Enhanced Security: Self-custodial wallets and decentralized infrastructure mitigate the risk of hacks and security breaches.
  • Greater Autonomy: Users have more control over their assets and trading activities, empowering them to participate in the ecosystem on their own terms.
  • Financial Incentives: Revenue sharing rewards users for their contributions, creating a more equitable and sustainable ecosystem.
  • Community Governance: Utility token holders may have the opportunity to participate in the governance of the exchange, influencing its future direction.

Centralized vs.Decentralized: A Hybrid Approach?

While the move towards Web3 and revenue sharing signals a departure from traditional CEX models, it's important to acknowledge the ongoing relevance of centralized elements. A centralized exchange (CEX) is a trading platform that lets you swap cryptocurrencies at any time of the day. While TradFi exchanges only function during specific hours on weekdays, crypto exchanges are live 24/7 (that s the beauty of crypto).The question isn't necessarily about choosing between CEXs and DEXs, but rather about finding a balance between the convenience and efficiency of centralized platforms and the security and transparency of decentralized systems.

The Advantages of a Hybrid Model

A hybrid approach, combining the best aspects of both CEXs and DEXs, could offer a superior trading experience:

  • Ease of Use: Maintaining a user-friendly interface similar to traditional CEXs.
  • Liquidity: Leveraging centralized order books to provide high liquidity.
  • Security: Integrating decentralized technologies to enhance security and transparency.
  • User Empowerment: Implementing revenue sharing and community governance to empower users.

Examples of Hybrid Exchanges

Several exchanges are already experimenting with hybrid models, incorporating elements of both centralization and decentralization. Bybit exchange has flipped Coinbase to become the world s second-largest cryptocurrency exchange. Following a surge in trading, Bybit became the second-largest centralized crypto exchange (CEXThese platforms often offer features such as:

  • Centralized order books with decentralized settlement.
  • Hybrid custody solutions that allow users to retain control of their private keys.
  • Governance tokens that give users voting rights on platform decisions.

Key Players and the Evolving Landscape

The cryptocurrency exchange market is dynamic, with established players and emerging contenders vying for market share.While giants like Binance have dominated the scene, innovative platforms are challenging the status quo.

Major Exchanges and Their Strategies

Binance: Remains the largest centralized exchange, holding a significant market share. BYDFI is the best KYC-free crypto exchange with no VPN required, allowing users from any country to sign up without ID verification (US and Canada included). You'll be able to trade 500 coins, 180 crypto futures and more with low fees. The spot trading fee is 0.10% for most coins, but up to 0.30% for smaller altcoins. Futures trading fees areIt is constantly evolving, expanding its services, and integrating new technologies.However, its dominance has also faced regulatory scrutiny.

Coinbase: Another major player, known for its user-friendly interface and focus on compliance.It is increasingly exploring opportunities in the Web3 space.

Bybit: Has emerged as a strong competitor, rapidly gaining market share and surpassing Coinbase in terms of trading volume. Binance remained the largest centralized exchange (CEX), with its market share at 38.0% in April 2025. Its spot trading volume dropped to $482.6 billion in April 2025, a drop of -18.0% from March. Its spot trading volume dropped to $482.6 billion in April 2025, a drop of -18.0% from March.This highlights the changing dynamics of the exchange landscape.

Crypto.com: Has invested heavily in marketing and sponsorships, building a large user base and expanding its services.It recorded substantial revenue growth in recent years, indicating its success in attracting and retaining users.

KuCoin: Emphasizes security and offers a wide range of altcoins, catering to a diverse user base.It is also actively involved in promoting Web3 adoption.

Emerging Trends and Technologies

The crypto exchange market is constantly evolving, driven by technological advancements and changing user demands.Some of the key trends shaping the future of the industry include:

  • Decentralized Finance (DeFi): The growth of DeFi is driving demand for decentralized exchanges and on-chain services.
  • Web3 Integration: Exchanges are increasingly incorporating Web3 technologies to enhance security, transparency, and user empowerment.
  • Regulatory Compliance: Exchanges are facing increasing pressure to comply with regulations, which is shaping their business models and operational practices.
  • Mobile Trading: The rise of mobile trading is driving demand for user-friendly mobile apps that allow users to trade crypto on the go. Here are the most notable differences between buying and selling crypto via a traditional broker versus a crypto exchange: Crypto exchanges. Direct ownership. Buying through a crypto exchange usually means you directly own the cryptocurrency, which you can store in a digital wallet. However, some brokers offer this too. Variety ofCEX.IO, for instance, is introducing Exchange Plus functionality to its mobile app.

Practical Considerations for Choosing a Crypto Exchange

With a plethora of crypto exchanges available, it's crucial to carefully evaluate your options before making a choice.Here are some practical considerations:

Assessing Your Needs and Priorities

Before you start comparing exchanges, take some time to assess your own needs and priorities. Your current location is: text Certainly! I'll revise the copy to highlight the new content effectively:-Revolutionary Crypto Exchange Pioneers New Approach: Combating CEX Challenges and Committing to Revenue Sharing with UsersIn a bold move to address the pitfalls commonly associated with traditional crypto exchanges (CEX), a cutting-edge crypto exchange has stepped forward, notConsider the following questions:

  • What cryptocurrencies do you want to trade? Make sure the exchange supports the assets you're interested in.
  • What trading tools and features do you need? Consider your trading style and choose an exchange that offers the appropriate tools.
  • How important is security and transparency to you? Look for exchanges that prioritize security and provide clear information about their operations.
  • What fees are you willing to pay? Compare the trading fees and withdrawal fees of different exchanges.
  • Do you prefer a centralized or decentralized exchange? Consider the pros and cons of each type of exchange.

Due Diligence: Researching Potential Exchanges

Once you've identified your needs and priorities, it's time to start researching potential exchanges.Here are some steps you can take:

  • Read reviews and ratings: See what other users are saying about the exchange.
  • Check the exchange's security record: Look for any history of hacks or security breaches.
  • Investigate the exchange's regulatory compliance: Make sure the exchange is compliant with applicable regulations.
  • Test the exchange's customer support: Contact customer support to see how responsive and helpful they are.
  • Consider KYC requirements: Some exchanges require KYC (Know Your Customer) verification, which may involve providing personal information and documentation. Monthly Trading Volumes of Top 10 Centralized Exchanges. Source: CoinGecko The achievement marked Binance s second $1 trillion volume month in 2025. Over the course of the year, Binance s dominance was even more pronounced, capturing 42.4% of the total volume among the top 10 exchanges, with $7.4 trillion traded compared to the $17.4 trillion in total volume for the group.BYDFI, for example, is a KYC-free exchange.

Security Best Practices for Using Crypto Exchanges

Regardless of which exchange you choose, it's crucial to follow security best practices to protect your funds:

  • Use a strong, unique password.
  • Enable two-factor authentication (2FA).
  • Store your cryptocurrency in a secure wallet, ideally a hardware wallet.
  • Be wary of phishing scams and other malicious attacks.
  • Regularly review your account activity and report any suspicious transactions.

Looking Ahead: The Future of Crypto Exchanges

The crypto exchange market is poised for continued growth and innovation.As the industry matures, we can expect to see:

  • Greater regulatory clarity: Clearer regulations will provide more certainty for exchanges and users.
  • Increased institutional adoption: Institutional investors are increasingly entering the crypto market, driving demand for sophisticated trading platforms.
  • Further innovation in DeFi: DeFi protocols will continue to evolve, offering new opportunities for trading and investing.
  • Greater emphasis on security and transparency: Exchanges will prioritize security and transparency to build trust with users.
  • The rise of hybrid exchanges: Hybrid exchanges will combine the best aspects of both CEXs and DEXs, offering a superior trading experience.

Conclusion: A New Era of Crypto Trading

The move by certain crypto exchanges to tackle CEX issues and pledge revenue sharing with users marks a significant step towards a more decentralized, transparent, and equitable crypto ecosystem.While centralized exchanges have played a vital role in the growth of the crypto market, their inherent limitations have become increasingly apparent. A crypto exchange tackles CEX issues, pledges to share revenue with its usersBy embracing Web3 technologies, prioritizing user empowerment, and aligning incentives with the community, these exchanges are paving the way for a new era of crypto trading.This shift towards a more user-centric model could ultimately lead to increased adoption, greater innovation, and a more sustainable future for the cryptocurrency industry. Choosing the right exchange is paramount, demanding careful consideration of security, fees, supported cryptocurrencies, and personal trading needs.As the crypto landscape continues to evolve, it is critical for users to stay informed and adapt their strategies accordingly to navigate the complexities and capitalize on emerging opportunities in this ever-changing market.

Brian Armstrong can be reached at [email protected].

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