Bitthumb has opened its decentralized cryptocurrency exchange, allowing peer-to-peer trading of cryptocurrencies with a central authority.
The decentralized exchange (DEX) is likely to become a trend for several reasons. Firstly, the DEX reduces the risk of theft from hacking as investors do not need to transfer their assets to the exchange. Secondly, the DEX also prevents price manipulation or faked trading volume through the so-called wash trading. Thirdly, investors can enjoy more anonymity because the DEX does not require the “know-your-customer” requirements.
Bithumb is not alone in creating the DEX. China’s cryptocurrency exchange BINANCE has also launched the DEX.
The next question is whether the existing centralized exchange will disappear, and the DEX will replace it. Analysts said the two exchanges—centralized and decentralized—would coexist.
The DEX could be part of the business diversification strategy
