🟣Common DEX Issues🟣
In our last article, we spoke about the perks and downfalls of DEX and CEX exchanges, and while the differences between them are clear, what is the current issue with DEXs & why are many having a hard time holding up against the crypto winter? Let’s find out!
- Lack of Authenticity
I am sure you know PancakeSwap. But did you know there is also SushiSwap, CookieSwap, KebabSwap & many more like it? These copy-paste projects lack authenticity, and most of them have a life-span of several months till a bear market hits, let alone a crypto winter. We shouldn’t be surprised these DEXs are going under now, and come to think of it — it’s actually for the better that projects like these leave the market.
- High Fees
We all love the crypto scene, but we cannot ignore the fact that many are out here with traders being the last thing on their mind. DEX project creators, desperate to make as much as they can in the short-term, hike up commissions, failing to realize that this hardly goes a long way for the project’s future. Greed and desire to create something meaningful just don’t go together.
- LP Quantity over Quality
Projects are motivated to add as many assets as they can, and while this may increase the total amount of liquidity, it can also backfire. A large number of liquidity pools, filled with questionable coins result in high risk and volatility, leading to impermanent loss and trader deposit wipe-out.
- Security
When it comes to making money, it’s sad to see how many projects neglect audits, and even when they pass one, in 90% of the cases it ends there. Is one audit a good enough proof of trader fund security? That’s up to you to decide, but generally the answer is no. We at BXH have only recently conducted another independent audit, and don’t plan on stopping. Regular audits are a must to keep mechanisms fully-functional and traders — safe.
📌Conclusion
So how does one overcome all these issues? We at BXH got a solution. Not only are we not tanking in this tough period, we are growing stronger! Having recently become a CEX, we have completed our DEX features with some awesome add-ons of a centralized exchange, including Spot Trading 25+ currencies and OTC Trading. Futures too are already on the way.
So if you are still hesitant on CEX vs DEX, why not go for the BXH CeDeFi Exchange!🚀
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