The chief executive of the world’s largest crypto exchange platform by volume says that the crypto industry needs more decentralized exchanges (DEXes).
In a recent thread, Binance CEO Changpeng Zhao says that even though DEXes can be flawed and he runs a massive centralized crypto exchange (CEX), he believes decentralized crypto swapping platforms are exactly what the industry needs.
“We need more DEXs. PancakeSwap has most of the users. Uniswap has most of the TVL [total value locked]. That’s still ‘too centralized’… (I know, imagine that coming from me.) Need more options.”
Recently, the latest iteration of PancakeSwap, a prominent DEX, launched on both BNB Chain and Ethereum (ETH).
Zhao goes on to address the suggestion that Binance should create some sort of hybrid crypto exchange platform that would combine the self-custody of DEXes with the liquidity and performance of CEXes.
According to Zhao, such a task would be “easier said than done” as blockchain technology currently lacks the required throughput.
“Easier said than done. Have to ensure fund security too. Make sure the counterparty of the trade gets paid and no one can scam the system, ie, real-time settlements. Blockchain throughput is just not there yet.”
Replying to a user who said that popular decentralized exchanges, such as PancakeSwap, appear safer compared to the new ones, Zhao notes that DEXes could face issues with hacks and exploits.
“Yes, DEX do get hacked too, code exploits, etc.”
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