Crypto

A crypto exchange tackles CEX issues, pledges to share revenue with its users

Published

6 months ago

November 6, 2023

A crypto exchange tackles CEX issues, pledges to share revenue with its users

For an extended period, centralized exchanges (CEXs) have played a pivotal role in cryptocurrency trading, offering traders dependability and robust liquidity. These platforms have been the go-to choice, with users trusting CEXs to safeguard their assets, appreciating user-friendly interfaces, and benefiting from an ever-evolving array of innovative features.

Yet, centralized exchanges are not without drawbacks, foremost among them being a lack of transparency. Users sometimes find themselves in the dark regarding the utilization of their funds and the inner workings of the exchanges. Moreover, CEXs introduce a potential single point of failure, as they are centralized entities that wield control over users’ assets.

In light of these drawbacks, some users may prefer to use decentralized exchanges (DEXs). DEXs are more transparent and secure than CEXs, but they can be more difficult to use. The ultimate solution for users may be a platform that combines the reliability of CEXs with the autonomy of DEXs.

A hybrid solution that is here to change the narrative

Phemex, a cryptocurrency exchange, is committed to providing an improved trading experience for its users. The exchange invests heavily in cutting-edge technology to create the optimal trading environment, empowering traders to succeed in the market.

Phemex sets itself apart by embracing reliable cryptocurrency trading within a decentralized framework and delving into the realms of Web3, transcending mere financialization.

To embrace a hybrid future and build a next-gen decentralized society, Phemex launched its semi-centralized platform model Phemexia, integrating decentralized elements into their existing CEX operations. The platform took a daring step by outlining its commitment to distribute a portion of its revenue to its community in its whitepaper.

Phemex has extended an invitation to crypto and Web3 enthusiasts from all corners of the world to participate in their drive toward decentralization by minting their Phemex Soul Pass (PSP). This innovative token allows users to mint and unlock exclusive platform benefits. PSP securely records users’ activity on the platform, rewarding them based on their interactions. Being a soulbound token (SBT), PSP is non-transferable and uniquely tied to the individual, guaranteeing that benefits reach the recipient without ambiguity or middlemen.

A lunar mission ahead

So, what’s next for Phemex and their growing community?

The exchange is now gearing up to launch its native platform token, Phemex Token (PT), at the end of this month, which is set to complete the Phemexia ecosystem and give its holders a stake in the exchange’s success. The token will serve as the backbone of governance in the Phemexia ecosystem. In celebration, Phemex embarked on a so-to-say “lunar mission” with their “Phemex Token to the Moon” event, giving its community a chance to earn a stake in the ecosystem and become active participants in Phemex’s journey.

Stella Chan, Phemex’s chief operating officer, is enthusiastic about bringing PT to life and leading the charge in Phemex’s Web3 revolution:

“We are thrilled by the tremendous interest our community has shown in the xPT pre-mining event, demonstrating their belief in its potential for long-term benefits. We embarked on this journey to provide our community with the control and transparency they desired. Our commitment is reflected in our decision to burn stage five of our pre-mining and transfer all funds to the PhemexDAO treasury. But this is just the beginning: we will continue growing with our community. Owning PT positions them as essential partners, enabling them to share in our revenues. Holding a piece of Phemex, they can enjoy the autonomy they have long been seeking from a transparent and reliable exchange”.

During the initial phase of the “Phemex Token to the Moon” event, users can complete simple and enjoyable tasks and receive native tokens as a gesture of appreciation from Phemex to its loyal community as they kick start their official launch.

In addition, users can expect more engaging activities to keep the launch excitement going in the coming weeks.

Autonomy and security

Phemex is building a secure DeFi ecosystem that delivers a safe environment where users can engage and experiment with innovative DeFi products and services. Its goal is to achieve a trifecta of autonomy, transparency, and security. Additional DeFi features will launch in the future — including decentralized credit scores and integrating AMM liquidity providers. A gamification element also promises to add a dose of fun along the way.

Embed tweet: https://twitter.com/Phemex_official/status/1717836831092257012

From SBT as your unique identity, seamless Web3 wallet integration, and unparalleled data transparency, Phemexia is revolutionizing the way 🫵 trade.
Become a part of the trading revolution now: https://t.co/Gl2IBmjPaT
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— Phemex (@Phemex_official) October 27, 2023

Phemex is embracing a hybrid future to address the drawbacks of both CEXs and DEXs. A commitment to transparency has long been a core value for the Phemex team, who collectively have over 20 years of trading experience and extensive experience in the Web3 space. The exchange has long offered a clear breakdown of its proof of reserves and proof of solvency, meaning users can verify the current financial position of the platform without the need for third-party audits.

With its commitment to security, transparency, and autonomy, Phemex is now applying its expertise and credibility to create a Web3 experience where users can enjoy the benefits of trading and being part of a rewarding, decentralized community.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.

Crypto

Crypto lender Genesis to return $3 billion to customers in bankruptcy wind-down

Published

6 hours ago

May 18, 2024

Press Room

Crypto lender Genesis to return $3 billion to customers in bankruptcy wind-down

Crypto lender Genesis Global received a significant victory in bankruptcy court on Friday, securing approval for its liquidation plan that will return approximately $3 billion in cash and cryptocurrency to its customers. The ruling, however, delivers a blow to Genesis’s owner, Digital Currency Group (DCG), which will receive no recovery from the bankruptcy.

U.S. Bankruptcy Judge Sean Lane overruled DCG’s objection to the plan, which centred on the valuation of crypto assets. DCG argued that customer claims should be capped at the value of cryptocurrencies in January 2023, when Genesis filed for bankruptcy. Crypto prices have surged since then, with Bitcoin, for example, rising from $21,084 in January 2023 to its current price of around $67,000.

Judge Lane rejected DCG’s argument, stating that even with the lower valuation, Genesis would have to prioritise paying other creditors, including federal and state financial regulators with claims totalling $32 billion, before distributing funds to its equity owner.

“There are nowhere near enough assets to provide any recovery to DCG in these cases,” Judge Lane wrote in his ruling.

Genesis aims to return funds to customers in cryptocurrency wherever possible, although it lacks sufficient crypto assets to fully repay all outstanding claims.

Sean O’Neal, an attorney representing Genesis, refuted DCG’s assertion that customers could be paid in full based on the lower January 2023 valuations. “We don’t buy into the idea that claims are capped at the petition date value,” O’Neal stated.

Genesis initially estimated in February that it could repay up to 77% of the value of customer claims, subject to future fluctuations in cryptocurrency prices.

This court approval marks a significant step forward in the resolution of Genesis’s bankruptcy, providing much-needed relief to its customers while leaving its owner, DCG, without any financial recovery.

Crypto

Venezuela to shut down cryptocurrency mining farms

Published

13 hours ago

May 18, 2024

Press Room

Venezuela to shut down cryptocurrency mining farms

Venezuela’s Ministry of Electric Power announced it would disconnect all cryptocurrency mining farms from the national power grid (SEN, Sistema Electrico Nacional). The measure aims to control the high energy demand from these mining farms and ensure reliable service for citizens.

AlbertoNews, a local media outlet, reported the announcement on May 18.

“The purpose is to disconnect all cryptocurrency mining farms in the country from the SEN [National Electrical System], avoiding the high impact on demand, which allows us to continue offering an efficient and reliable service to all the Venezuelan people,”
the Ministry reported in its account in Instagram.

Notably, the announcement followed the seizure of 2,000 cryptocurrency mining machines in the country. This action is part of the government’s ongoing anti-corruption campaign. Leading to the arrests of several officials from state institutions.

Corruption with the National Superintendency of Cryptoassets

The National Superintendency of Cryptoassets (Sunacrip) has been under a restructuring board since the arrest of Superintendent Joselit Ramírez. Ramírez has connections to Tareck El Aissami, former Petroleum Minister and former president of Petróleos de Venezuela (PDVSA).

On that note, El Aissami was charged with treason, embezzlement, misuse of influence, money laundering, and criminal association.

Venezuela power grid issues and cryptocurrency mining

Venezuela has faced an ongoing electricity crisis since 2009, worsened by massive blackouts in 2019 that left cities without power for up to seven days. Frequent power outages have negatively affected the country’s quality of life and economic activities.

Therefore, Governor of Carabobo state, Rafael Lacava confirmed restrictions on cryptocurrency mining farms due to their significant electricity consumption. He urged residents to report illegal cryptocurrency mining operations to prevent power shortages.

“If you, neighbor, see a house that you know, tell that person to turn off the farm, or else report it, because when they turn off the light, because you have to give light to a man so that he can earn some reales (money), you are left without electrical service.”
– Rafael Lacava

As reported by AlbertoNews, experts attribute the crisis to poor maintenance and inadequate investment in the power grid. Meanwhile, the government blames sabotage and has promised to modernize the state-controlled power network.

Overall, Bitcoin (BTC) and cryptocurrency mining are known worldwide for their high energy consumption. Countries like China and Cazaquistan have banned the activity to preserve their power grids, centralizing mining in fewer locations.

Therefore, the fewer countries allowing this activity, the higher the security concerns will be, as a few miners dominate block discovery.