Changpeng Zhao recently criticized the CEX crypto rating system. According to him, the latter is both ineffective and unfair. We tell you more in the following paragraphs!
A recent example illustrates this problem perfectly: the crypto tst token
There Crypto TST was initially designed as a simple test token for a BNB Chain tutorial video. However, it experienced a meteoric ascent before falling just as brutally.
On February 9, the market capitalization of this asset crypto has indeed reached a summit of $ 489 million before collapsing by more than 50 %. She therefore dropped to $ 192 million in a few hours. This flight was fed by crypto investors who discovered the token following a brief mention in a video.
This case highlights Cex faultswhich fail to control the speculative impact of quotation ads (at the expense of stability of the cryptocurrency market).
Towards an automation of quotes on the CEX?
Faced with these drifts, Changpeng Zhao offers a radical solution: Automate the rating of cryptocurrencies on the CEX (like Dex). According to the co -founder of Binance, this approach would avoid manipulation by removing the time between the announcement and the effective rating.
Today, the CEX indeed filter the crypto tokens before listing them. This creates artificial scarcity and market anticipation. This centralized approach Contrast with Dex, where any crypto-active can be immediately exchanged without prior authorization.
L'automation The rating of crypto assets nevertheless poses several challenges:
- Security problem :: Fraudulent or malicious tokens could be listed instantly.
- Regulation :: Financial authorities may impose restrictions to avoid money laundering.
- Liquidity management: Without filtering, some cryptographic tokens may lack liquidity. Which would cause extreme volatility.
One thing is certain: CEX rating practices are increasingly disputed. If the Crypto community validates CZ's approach, the CEX could lose their domination. File to follow …
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