CEX and DEX – What’s next for digital asset trading platforms

As the world of digital assets continues to evolve, Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) have emerged as the primary platforms for trading these assets. However, the question arises – what’s next for digital asset trading platforms? With the rapid advancements in blockchain technology and the increasing adoption of cryptocurrencies, the future promises innovative solutions that could revolutionize the way we trade digital assets.

This topic was discussed by an expert panel at AIBC Eurasia held in Dubai this morning.  Nikita Sachdev from Luna PR moderated the panel which included Dorian Vincileoni from Kucoin and Stefan Kimmel, CEO of M2.

The panel discussion, led by Sanchez, explored the competition and coexistence between Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) in the crypto space.

While the original user base of crypto favours DEXs, the panel acknowledged that for mass adoption, especially among those who are not tech-savvy, a more regulated system offered by CEXs is appreciated. As institutional adoption increases, CEXs are seen to have more advantages.

Customer service was highlighted as a crucial aspect, with the understanding that this business model will face more scrutiny and regulation, potentially limiting things in the future. However, it was emphasized that CEXs and DEXs do not necessarily compete with each other.

DEXs are gaining traction, but mass adoption is still far off due to the complexities involved, such as the need to connect and manage private keys. The panel predicted that hybrid exchanges will gain more traction.

Looking ahead, the panel anticipates more AI support for customer services by the next bull run. They noted the innovation in the DEX space, with the emergence of UDX and more hybrid solutions. The panel agreed that while mass adoption will not be driven by DEXs, their presence fosters innovation and competitiveness in the industry.

The panel also discussed the potential of messengers like Telegram as a source for new crypto investors. The expert panellists concluded by noting the emergence of the UAE as a crypto hub.