Trust and transparency: Key trends in the CEX space post-FTX
“The unfortunate fall of FTX and the resulting loss of customer funds has undeniably cast a shadow over the cryptocurrency exchange industry, particularly CEXs,” told senior research analyst at Nansen, Osgur Murphy O Kane. Together with Bitget’s managing director Gracy Chen, they discussed the state of the CEX landscape after the FTX collapse in a recent Cointelegraph live AMA session.
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Speaking about the trends happening in the CEX space, the guests outlined exchange consolidations, the prevailing importance of DEX and DEX lending, and regulators strengthening their presence especially in Asia. Both speakers noted that the CEX space has put a renewed focus on trust and transparency through the implementation of various practices.
Using Bitget as an example, Chen referred to the publication of protection funds, a practice Bitget implemented last June before the industry’s dramatic events emerged. “We had $200 million in protection at the time, and we have increased that to $330 million, a fact that anyone can verify online,” Chen noted.
Pointing out that Binance has also boosted its protection funds, O Kane added: “It is crucial to note that these steps alone cannot provide an absolute guarantee of security. However, they are a step in the right direction.”
Proof of reserves, which essentially reflects how much a company holds in terms of major cryptocurrencies, is also becoming an industry standard. In addition to Bitget, other exchanges
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