On February 20, CoinEx proudly participated in the Hack Seasons Conference, a key Web3 event held at the Renaissance Hong Kong Harbour View Hotel as part of the Consensus HK series. The event served as a melting pot for founders, developers, investors, and industry experts, all coming together to discuss and shape the future of decentralized finance (DeFi).
Representing CoinEx on the main stage was Jeff Ko, Research Chief Analyst, who joined an expert panel featuring key figures from Ether.fi, AltLayer, and Mellow Protocol. The discussion centered on the evolving landscape of DeFi and how centralized exchanges (CEXs) can adapt and contribute to the sector’s growth amid the rise of on-chain trading.
CEX vs. DEX: Competition or Collaboration?
One of the key themes explored was the dynamic relationship between centralized exchanges (CEXs) and decentralized exchanges (DEXs). While the rise of DeFi has led to more users preferring on-chain trading, Ko emphasized that CEXs and DEXs should not be seen as direct competitors but rather as complementary components of the broader crypto ecosystem.
CoinEx’s Role in the Evolving DeFi Landscape
Ko highlighted that CEXs serve as essential multi-chain liquidity hubs, supporting a broader range of blockchain ecosystems than many DeFi protocols. He noted, "CoinEx, or generally speaking, a centralized exchange, actually functions as a multi-chain finance platform or a liquidity hub in quite many ways." By offering seamless cross-chain asset transfers, CoinEx provides a faster, cost-efficient, and more reliable alternative to decentralized bridging solutions, which can sometimes be slow, costly, or prone to exploits.
Another key advantage of CEXs is their ability to lower entry barriers for emerging token ecosystems. Many new token standards, such as Bitcoin Runes and Kasper’s KRC20, require users to set up specific wallets and navigate complex technical requirements. "A lot of them actually are still having pretty high entry barriers for everyday users," Ko explained. By listing these assets early and providing liquidity, CoinEx ensures that more retail users can easily access and trade these tokens without the need for specialized knowledge.
Moreover, CEXs play a crucial role in supporting Proof-of-Work (PoW) ecosystems, where DeFi protocols often struggle due to the lack of smart contract functionality. Ko pointed out that "This is an area a lot of DeFi protocols find super difficult to integrate because most PoW chains don’t have smart contract functionality, so native DeFi applications are super limited." CoinEx bridges this gap by providing a robust and efficient trading infrastructure for PoW assets, benefiting miners and PoW communities that might otherwise have limited access to liquidity.
To be concluded, Ko thought that CEXs and DEXs complement each other in shaping DeFi’s future, while CoinEx will be dedicated to enhancing accessibility, liquidity, and interoperability across the ecosystem.
Overcoming Challenges and Driving DeFi Innovation
Beyond the CEX vs. DEX discussion, the panel also addressed key bottlenecks and future innovations in DeFi. Panelists highlighted liquidity fragmentation as a significant challenge, with Ko pointing out that the rise of Layer 2 networks dilutes liquidity, while macroeconomic conditions further limit capital flow. Mellow’s Nick S emphasized the growing role of institutional capital in DeFi, which requires improved infrastructure. The discussion also explored the potential of AI-powered DeFi, with Ko predicting that AI could optimize capital allocation, algorithmic trading, and on-chain data analysis. Additionally, panelists anticipated that Ethereum-based firms will achieve massive revenue growth, with at least 10 companies expected to reach public market scale by 2025.
As the industry continues to evolve, CoinEx will remain at the forefront of innovation, ensuring that both institutional and retail users have the tools they need to navigate the ever-changing world of decentralized finance. The Hack Seasons Conference was a testament to the collaborative effort required to build the next generation of blockchain solutions, and CoinEx is excited to be a part of this transformative journey.
Stay tuned for more insights and updates from CoinEx as we continue to shape the future of digital asset trading and decentralized finance.
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