Thinking in stagnation, the dilemma of centralized exchanges based on Web3

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

History always repeats itself. From the Occupy Movement on Wall Street to the birth of Bitcoin, which targets financial oligarchs, every era has its own revolutionaries. They break the shackles and reconstruct the order, but often repeat the same mistakes after victory. Cryptocurrency once took up the banner of resistance to centralization, but now it is replicating the same power concentration: 80% of assets are once again concentrated in the hands of 20% of people. CEX, which was born in a fair, transparent and open environment and has gradually become a pillar industry in the 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-bearers will emerge. Human beings 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 being the market leader, is now caught in an inevitable market controversy. The wealth effect is gone, and it has become a diversion pool for new tokens and a new destination for buyers. Even Binance has been involved in many disputes about listing tokens and meme comments.

In the past, exchanges survived by relying on inflated market share and fake trading volume, but all of this disappeared in the long river of time. When DEX broke through 20% of CEXs 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 in it.

• Pump.fun realizes everyones desire to issue coins at low cost with a new attitude;

• Polymarket reveals the secrets of crypto “black box” with on-chain prediction of real data;

• Hyperliquid’s best marketing campaign was the rapid rise in token issuance and $HYPE price, with lower fees than CEX and more attractive incentives.

As the old and the new alternate, the market always sweeps the attention of cryptocurrencies with the latest narratives and innovative products. This is the inevitable reaction of the market. Now it is like building a casino on Mars. The old order has been hit unprecedentedly, and the crypto spirit has been inherited 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 value networks that do not require permission.

Breakthrough or transformation? The competition among exchanges in layout

Change has quietly arrived, and some CEXs with a keen sense of smell have taken the lead in taking action.

First, Binance, the leader of CEX, as the number one exchange, is constrained by traditional financial management methods and frequently launches VC coins with low circulation and high FDV, resulting in frequent trust crises. However, with the shift of market attention in the later period, Binance has significantly increased the frequency of launching Meme tokens since the second half of 2024, and has used the Alpha section in the Binance web3 wallet for testing fields, and has successively launched innovative tokens such as AIXBT, CGPT, and Cookie.

Secondly, as OKX focuses on developing compliance business in 2024 and continues to consolidate its web3 wallet business, it tends to follow a conventional process. As one of the exchanges most affected by US policies and responding quickly, Coinbase is gradually expanding into more markets with its high-frequency listing rhythm.

Among other exchanges, it is worth noting that لبنك, the exchange that first smelled the breath of change, began to lay out the Meme track as early as 2023, and launched a $10 million meme special fund. In 2024, it focused on Meme and launched popular currencies such as Moodeng, Goat, ACT, Slerf, etc., all of which achieved an increase of more than 50 times. Compared with Gate and Bitget, it is bolder and has mastered the information gap and time difference, achieving overtaking on the curve.

During this period, the Meme market performance in 2024 and the top ten memecoins were screened. From market value and market share to the performance of memes in different ecosystems, the performance of new infrastructure, and CEXs transformation of memes, in-depth research and rigorous attitude towards memes were presented.

Crypto Apocalypse: From Bubble to Real Awakening

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

Recalling that Eric he, former CEO of LBank, said many times in Space 2024:

• “So-called value investing is actually a regression of the industry. High valuations represent arrogance and prejudice to some extent.”

• Openness, transparency, and fairness will be the ultimate destination of CEX.

• “If CEX continues to stick to its outdated traditions and refuses to innovate, the crypto 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 effect of getting rich quickly, and achieve wild growth in the bubble.”

In his opinion, Memecoin breaks the traditional investment barriers and provides equal opportunities for all participants. Although this is a high-risk track, as he said: This may be the breeding ground for 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 start to compete with each other on the product side.

Although many CEXs 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 the core logic is to divert CEX users to its own ecosystem rather than truly pursuing decentralization. For LBank, although the brand upgrade may imply that it pays attention to the Web3 ecosystem, judging from its historical behavior, it is highly unlikely that it will simply follow the trend to walletize.

What kind of CEX+DEX do we need?

The discussion about CEX and DEX has never stopped, and the essential difference between the two is still one of the core controversies in the crypto market. CEX has dominated the crypto market in the past, and it has established its dominance through efficient trading systems, strong liquidity, and highly concentrated resources. However, with the gradual implementation of the concept of decentralization, DEX has gradually emerged and become a strong competitor to CEX. The biggest advantage of DEX is its decentralized nature, with more transparent transactions, more control for users, and almost no external influence on transaction information and asset flows.

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

This does not mean that CEX will abandon its traditional operating model, but rather gradually integrate decentralized technology and governance into the existing structure through gradual reform. Specifically, CEX platforms can break through the limitations of traditional models by introducing decentralized trading pools, smart contracts, and community governance, while ensuring transaction efficiency and providing users with greater control and transparency.

The real winners will be those platforms that can deeply combine the concept of decentralization with efficient trading technology. LBanks 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 change maker, or be changed?

History has proven that in every major change, the incumbents are often abandoned by the times. Every market participant faces a choice: stay in the old comfort zone, or bravely embrace the new paradigm? 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 controversy and security concerns. In todays cruel reality where the emerging token distribution model on the chain has long been separated from the traditional institutional investment and the traditional routine of CEX listing, the history of crypto has changed from an infrastructure-dominated cycle to a new cycle centered on applications. Truth and lies are intertwined. Whether to continue to be content with the status quo or to achieve transformation at the turning point 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 rules 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 crypto 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 passively accept change, the final answer will be written by history.

This article is sourced from the internet: Thinking in stagnation, the dilemma of centralized exchanges based on Web3

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