What Roles Can Crypto Exchanges Play To Rebuild the Trust in Crypto

When the cryptocurrencies are sailing close to the winds, 

the last few mishappenings in the markets had deepened the pit for the stakeholders. With crypto users moving towards taking back the custody of their assets, a mass migration toward decentralized trading platforms can be witnessed. 

Amidst this swing of investing patterns, centralized cryptocurrency exchanges are looking out for breaking the mold while trying innovative methods to regain the trust of their users. From proof-of-reserves to independent audits, centralized players must ensure that their customers can trust the platform.

In light of these scenarios, CoinGabbar hosted leading voices of centralized crypto exchanges and had a fruitful Twitter space with the theme “What Roles Can Exchange Play To Rebuild the Trust in Crypto Market?”. The session was attended by Adel Bhurtun, Traders Brawl CEO & XT Communication Manager along with Markose Chenthitta, XT Podcast Head, and was moderated by CMA Sudeep Saxena, Co-Founder, CoinGabbar.

In this article, we are sharing a detailed overview of the discussion and highlighting the points of our guests. Read the article till the end to understand, how cryptocurrency exchanges can compel customers to return. 

How Crypto Exchanges Are Facilitating A Safer Crypto Space

Markose Chenthitta initiated the discussion by telling about the diversity of the user base of the XT exchange. Markose shared that XT is trying to educate the people about the risks involved in the space and most importantly holding your private keys. XT utilizes its social media not only for marketing purposes but also to share the message out there for crypto users. 

XT has its security protocol, cold storage, and other security mechanisms that ensure the safety of the end user of this centralized exchange. Here are some of the key differentiators for the XT exchange that sets it apart from the other exchanges present in the market. 

• XT is a socially infused trading platform that gives its users a social rather than an isolated experience while trading in cryptocurrencies. 

• XT exchange does not have any native hot wallet and it does not manage the private keys of any of its users

• One of the most active crypto exchange communities in Asia and now it is expanding in Central Europe, the Middle East, and Africa as well. 

• A lot of off-ramps and on-ramp activity with its marketing for the listed projects being a key differentiator

• XT supports cross-chain transfer along with meta trading function

The FTX Fiasco

With the FTX collapse, we have to acknowledge the need for more regulations in the crypto space. Releasing proof-of-reserves only without any proof-of-liabilities is nothing but a futile attempt at deception. We have to understand that the cryptocurrency space has outgrown its self-regulation and needs third-party regulators to maintain lex et ordo.

On the other hand, we also have to grasp the fact that FTX was a purely monetary fraud with a crypto theme. Blockchain tech has nothing to do with the collapse and if the right regulatory measures had been in place, the fall could be avoided. The entire episode also had geopolitical baggage and must be treated as plain financial criminality rather than blaming cryptocurrency as a reason. 

“CoinGabbar is working with CoinDCX and SunCrypto, leading centralized exchanges of India, and assisting them in curating their proof-of-reserves. We at CoinGabbar are committed to transparency in the crypto space and we are enabling the leading players to achieve this for their platform.” said, Sudeep.

XT exchange is also working towards securing the investor’s funds and ensuring a higher standard of security for the user. 

• XT is adding more emergency funds to their reserves for a rainy day

• They are also working towards reducing their total expenditure

• XT is educating our users on operational and custodial security 

• It is working towards optimizing its internal systems to secure the investor funds

Swing Against Centralized Exchanges

As we can see from the on-chain numbers, we are witnessing a mass movement of advanced traders moving towards decentralized platforms due to the lack of transparency in the operations of centralized exchanges. Amidst this, Bitcoin.com is also going to launch its decentralization exchange in the days to come. 

However, XT Exchange believes in the long term, even after the mass adoption of cryptocurrencies, only 5%  of the world population can access the cryptocurrencies. When crypto becomes mainstream, DeX would not be able to be simplified enough to on-boarded the new crypto users and that is where the centralized exchanges come into the picture.

XT believes in transparency and keeping the process as simple as possible. Here are some of the measures that XT exchange maintains to ensure that they are presenting their users with reliable information about their operations.

• XT uses its social media to communicate with its users and keep them informed about the happening in the exchange

• XT constantly works towards enhancing its cyber security modules and developing multi-layer safety mechanisms

• They are open to new collaborations and work with different brands to execute their strategies

• XT organized regular meetups and anyone can reach out to them in their offices and interact with the team

• Team XT is one of the youngest in the space and they are building an exchange based on trust and transparency 

The Elephant in the Room

We all know how Binance is being surrounded by the crypto community for leaving loopholes in their proof-of-reserves. As a result, Binance has recorded massive withdrawals from its exchange within hours. Some of the voices are going in their favor while some are going against it, however, we must realize the fact that no organization is big enough to fail. The questions raised by the crypto matter experts and the journalists were also rational and discarding them as mere anti-Binance sentiment is nothing but follow. There is no smoke without fire and we must remember that a blunt knife does not cut through. 

Now is the time when the cryptocurrency industry has to come forward with self-regulatory mechanisms and not wait for the government to intervene. On the other hand, governments must also move forward in regulating a giant such as Binance with the right checks and balances. If FTX had been regulated it would not have collapsed within hours. 

What is CoinGabbar?

CoinGabbar is working towards making crypto accessible for all by sharing as much as information required to make it to the mainstream. Crypto just has become the space to earn quick money which is not healthy, we are moving forward to tell the users that we are constantly building a stable crypto ecosystem. CoinGabbar is facilitating a general crypto user to the maximum extent possible without taking sides. 

The majority of our traffic is coming from developing nations that have a dire need of blockchain information, most of our users are from Bangladesh, Kenya, South America, South East Asia, and India. Our services are getting more popular as users are coming back to us for technical analysis and crypto trading insights. We provide them with everything they need to know about the cryptocurrency world, and that too without any additional cost.

Conclusion

If the government can come forward to moderate the centralized exchanges, we will witness a pump in user trust, which has become the need of the hour. 

We have to make blockchain comprehensible to regulators so that they can move forward with curating the rules in the right contexts. We need a dynamically revolving regulatory mechanism to ensure that user trust can be retained in centralized players without pushing them into the complexity of decentralized exchange protocols. We also have to educate the masses about the significance of their wallets and private keys, especially the knowledge of self-custody. 

Users have to understand that no brand or organization is too big to fail and there should always be a safety mechanism in place for all the stakeholders.