Thoughts in stagnation, the dilemma of “Web3” centralized exchanges

On January 9, 2025, the trading volume of DEX reached 20% of CEX for the first time in history, and the seemingly calm surface of the cryptocurrency industry began to have undercurrents.

History always repeats itself. From the "Occupier Movement" on Wall Street to the birth of Bitcoin aimed at financial oligarchs, every era has its own revolutionaries. They shattered shackles and reestablished order, but often made the same mistakes again after victory. Back then, cryptocurrency carried the banner of resistance to centralization, but now it is replicating the same concentration of power: 80% of assets are once again concentrated in the hands of 20% of people. It was born in a fair, transparent, and open environment, and has gradually become the pillar of the industry. CEX in the sex industry seems to have become more centralized than Wall Street banks.

This is the fascinating thing about history: when the old forces decay, new sword-holders will inevitably emerge. Humanity's desire for fairness, transparency and freedom has never changed.

A brief discussion on the current situation of the “encrypted utopia” at

the intersection

CEX, the king that once boasted of dominating the market, is now caught in an unavoidable market controversy. The wealth effect is no longer there, and it has become a diversion pool for new tokens. Amidst a series of scandals such as the "New Home for the Successor", even Binance has been involved in many disputes about currency listings, Meme comments and other disputes.

In the past, exchanges relied on wildly inflated market shares and false trading volumes to survive, but all of this disappeared in the long river of time. When DEX exceeded 20% of CEX’s trading volume for the first time, the market was like a broken glass ball, with fragments scattered everywhere, and everyone could see the hidden cracks.

• Pump.fun realizes everyone’s desire to issue coins at a low cost with a new attitude;
• Polymarket reveals the secrets of encryption “black box” with real data prediction on the chain;
• With lower handling fees than CEX and a more attractive incentive mechanism, Hyperliquid is considered the best marketing campaign along with the token issuance and the rapid increase in the price of $HYPE;

The old and the new alternate, and the market always sweeps crypto attention with the latest narratives and innovative products. This is an inevitable reaction of the market. Now it is like building a casino on Mars. The old order has been impacted like never before, while the crypto spirit is being passed on and innovated in a better way. Libertarians yearn for the free time and self-control spirit of their crypto world, and crypto friends and enthusiasts prefer permissionless value networks.

Breakthrough or transformation? The battle over the layout of various

exchanges

Change has come quietly, and some CEXs with keen sense of smell are the first to take action.

The first is Binance, the leader in CEX. As the number one exchange, it is constrained by traditional financial management methods and frequently lists VC coins with low circulation and high FDV, leading to frequent trust crises. However, with the shift of market attention in the later period, starting from the second half of 2024, Binance has significantly increased the frequency of listing Meme tokens, and has used the Alpha section in the Binance web3 wallet for "test fields", and has successively launched AIXBT and CGPT. , Cookie and other innovative tokens.

Secondly, as OKX focuses on developing compliance business in 2024 and continues to consolidate its web3 wallet business, it prefers a formal process. Coinbase, as one of the exchanges that has been most obviously affected by U.S. policies and responded quickly, has gradually expanded into more markets with its high-frequency currency listing rhythm.

Among other exchanges, it is worth noting that LBank, the first exchange to smell the breath of change, began to lay out the Meme track as early as 2023, and launched a US$10 million meme special fund, and will focus on Meme in 2024. , popular currencies such as Mooden, Goat, ACT, and Slerf have been launched, all of which have achieved increases of more than 50 times. Compared with Gate and Bitget, they are more bold and have mastered the information gap and time difference, achieving overtaking in corners.

During the period, the Meme market performance in 2024, the top ten memecoins, etc. were screened, ranging from market value and market share to meme performance under different ecology, the performance of new infrastructure and CEX's transformation of memes, etc., all presented In-depth research and rigorous attitude towards memes.

Crypto Apocalypse: From Bubble to Real Awakening

With the brand upgrade of LBank in the beginning of 2025, it seems that LBank is not content with the status quo.

Reminiscent of former LBank CEO Eric he’s statement in 2024 Space:

• "So-called value investing is actually a step backwards for the industry. To a certain extent, high valuations represent pride and prejudice."
• "Open, transparent and fair, this will be the ultimate destination of CEX."
• "If CEX continues to stick to its decadent tradition and refuse to innovate itself, the encryption market will eventually usher in the dawn of decentralization, and the era of DEX is unstoppable."
• "Return to the original intention, let more users experience the sudden wealth effect, and achieve barbaric growth in the bubble."

In his view, Memecoin breaks down traditional investment barriers and provides equal opportunities for all participants. Although this is a high-risk track, as he said: "This may be the next BTC or DOGE." Combined with the recent brand upgrade of LBank, it is inevitable that people will wonder whether LBank will also follow the trend of web3 wallets and carry out differentiated PK on the product side.

Although at present, many CEX have begun to explore the path of Web3, such as launching services that are closely integrated with wallet functions, in an attempt to occupy a place in the decentralization trend. However, this "exchange + wallet" model seems innovative, but its core logic is to divert CEX users into its own ecosystem rather than truly pursuing decentralization. For LBank, although the brand upgrade may imply that it is paying attention to the Web3 ecosystem, judging from its historical behavior, there is a high probability that it will not simply follow the trend to "walletize".

What kind of CEX+DEX do we need?

The discussion of CEX and DEX has never stopped, and the essential difference between the two remains one of the core controversies in the encryption market. CEX dominated the crypto market in the past. It established its dominance through efficient trading systems, strong liquidity, and highly concentrated resources. However, with the gradual implementation of the decentralization concept, DEX has gradually emerged and become a strong competitor of CEX. The biggest advantage of DEX is its decentralized nature. Transactions are more transparent, users have more control, and transaction information and asset flows are almost free from external influence.

Perhaps, in the future encryption market, CEX and DEX will no longer be opposite poles, but a deeply integrated ecosystem. The real innovation will be to inject decentralized elements on the basis of CEX's efficient trading and liquidity advantages to form a "CEX+DEX" composite trading model. This model can not only maintain the advantages of CEX in speed, liquidity and resource concentration, but also ensure the fairness and autonomy of the platform with the help of DEX's transparency and user control.

This does not mean that CEX will give up its traditional operating model, but will gradually integrate decentralized technology and governance into the existing structure through progressive reforms. Specifically, the CEX platform can break through the limitations of the traditional model by introducing decentralized trading pools, smart contracts, and community governance. While ensuring transaction efficiency, it can also provide users with higher control and transparency.

The real winners will be those platforms that can deeply combine the concept of decentralization with efficient trading technology. LBank's strategic layout is precisely a key step in this process. Through innovative thinking and technological integration, it strives to find an innovative path between CEX and DEX that is more in line with market demand.

Be a changer or be changed?

History has proven that in every major change, those who maintain the status quo are often abandoned by the times. Every market participant faces a choice: stay in the old comfort zone, or bravely embrace the new paradigm? Should we stick to existing interests, or take the initiative to break through barriers? The real winners will be those pioneers who dare to break the shackles and meet the challenges of the new era.

As the “victorious general” in the crypto market, CEX is often full of controversies and security considerations. In the cruel reality that the emerging token distribution model on the chain has already broken away from the traditional routine of traditional institutional investment and CEX currency listing, the history of cryptography has been From an infrastructure-led cycle to a new application-centric cycle, truth and lies are intertwined. Whether to continue to be content with the status quo or to achieve transformation during the transition period is a huge test.

The evolution of the market is not static, and the real winners will be those pioneers who dare to break the mold and embrace new opportunities. In this era of change, transparency, decentralization and innovation are the core values ​​of the crypto market. Whether it is LBank or other CEX platforms, only by constantly examining their core values ​​and breaking the inherent framework can they stand out in the future encryption market.

The clarion call for change has sounded, and the old order is disintegrating. In this era full of opportunities and challenges, whether to be a promoter of change or to passively accept change, the final answer will be written by history.