McAfee-Supported DEX challenges Centralized Exchanges.
Last week, Bithumb lost nearly $20 million in cryptocurrencies due to a hack. This was the second time Bithumb, one of the largest exchanges in the world, was hacked in a 12-month period. Just a few months prior to this, QuadrigaCX, the leading exchange in Canada, lost access to its users’ funds as its founder and CEO, who was the only person with access to the exchange’s Crypto storage, suspiciously died on a foreign trip.
With the exchange's CEO being the only person with access to private keys, the exchange has been unable to return funds to users.
Given the growing problems faced by centralized exchanges, Switch.ag, a platform designed to enable users to anonymously switch Ethereum or any ERC-20 token for other ERC-20 tokens, gift cards, or charitable giving, has launched a DEX. SwitchDex, which allows users to trade ERC-20 tokens with Ethereum, has seen support among prominent people in the Crypto space, including John McAfee.
Fees Distributed to the Community
There’s a number of decentralized exchanges out there, but SwitchDex is the first one to receive support from major profiles in the Crypto space. For one, it’s the first decentralized marketplace which is friendly to novice entrants in the Crypto space. Switch.ag is designed to be easy to use by the masses as they are given a visual display of their trade matches. SwitchDex extends the ecosystem by giving more experienced traders the opportunity and freedom to carry out more flexible traders.
While the exchange’s goal of making a decentralized marketplace that can suit anyone’s needs has been well-received, the likely reason it has gained so much support is because of the way the exchange handles its fees.
Fees Distributed to Token Holders
Existing decentralized exchanges like DDEX and ForkDelta retain all their fees. Ironically, even centralized exchanges distribute fees back to token holders. For example, Binance gives back 20% in the form of buy-backs and Bibox shares 50% of fees with token holders.
SwitchDex is the first exchange to distribute all fees to token holders. Thus, this is the first decentralized exchange to hand back fees to the community, and it goes all the way since SwitchDex won’t retain any of the money. The fees are airdropped to wallets that hold ESH, the native token of Swtch.ag, and SDEX, the native token of SwitchDex.
Much Cheaper
Both centralized and decentralized exchanges tend to charge a fee to both market makers and market takers. Bitfinex, for example, charges a 0.2% fee to market takers and a 0.1% fee to market makers. Thus, the net claim adds up to 0.3%. Decentralized exchanges have followed this path:
IDEX: 0.2% for market takers; 0.1% for market makers (0.3% net claim)
DDEX: 0.3% for market takers; 0.1% for market makers (0.4% net claim)
ForkDelta: 0.3% for market takers (0.3% net claim)
SwitchDex, on the other hand, charges only one fee: 0.2% for market takers, and these fees are given back to the token holders anyways. Thus, the exchange offers a trader-centric platform as not only are the fees low, but they are also given back to the community.
Things get more interesting with memberships, as these can reduce fees to zero.
Memberships
The concept of exchange memberships has been put to use in the past. Huobi, a leading centralized exchange, sells memberships for hundreds or even thousands of dollars. In return, members are given fee discounts. Huobi’s memberships are a great resource for large market players, but are unlikely to be used by retail traders and investors as the large upfront sum is not going to match fee savings.
SwitchDex, noticing the potential in memberships, has created the most powerful membership program in any exchange’s history. With a one-time payment, traders will become SwitchDex members, enabling them to trade for free on the platform forever. Even the membership fees are airdropped to platform token holders (ESH tokens and SDEX tokens).
The membership fees will start a $20 in April and will increase by $10 each month. Presently, the intent is to cap the maximum fee at $100 by December, 2019. The membership fees work as such:
April: One-time $20 fee.
May: One-time $30 fee.
June: One-time $40 fee.
…
December: One-time $100 fee.
A New Tier for a DEX
Decentralized exchanges have seen limited popularity to date but that’s been largely because centralized exchanges have either offered lower fees, partially returned fees to token holders, or offered memberships for fee discounts.
SwitchDex is the first decentralized exchange to offer features that can go horn-to-horn against any CEX. By offering just a taker fee, $20 memberships for a life-time of no fees, and returning all collected fees to ESH and SDEX holders, SwitchDex is kicking off a new tier for a DEX.
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Centralised exchanges are a necessary evil for now and DEX is where we need to be moving towards. All the scandals as you mentioned and wash trading and volume faking just shows 3rd parties of any kind cannot be trusted and are easily corrupted be it in tech or in morals
I'm a fucktard.
Hlw
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Already using it. Needs some more volume but the UI is great and feels very smooth!
☺
Already using it. Needs some more volume but the UI is great and feels very smooth!
Due to security reasons, different countries don't allow cryptocurrency in general. It is very hard to find who has done money laundering in the blockchain network. It is very necessary improve security measures in blockchain technology.
And not to mention that not many businesses are willing yet to accept cryptocurrencies.
What a danger of hacking. That figure is just too much
Awesome!! I'll check it out, thanks for the heads up. Dexs will be the future as people won't trust centralized exchanges as more of these hacks happen.
yes a wonderfuell contents, it's a very important notice
John McAfee will eat his d*ck if Bitcoin doesn't reach $1m by 2020
https://www.theinquirer.net › news › joh...
;)))
I hear he's great for financial advice. Now he appears to be streaking across some remote island, they put a coat on him to make it PG. They could barely handle him for a minute and a half, God knows what happened after that.
I am absolutely agree with you
Los intercambios centralizados son un mal necesario por ahora y DEX es hacia donde debemos avanzar. Todos los escándalos, como usted mencionó, el comercio de lavado y la falsificación de volúmenes, muestran que no se puede confiar en terceros de cualquier tipo y se corrompen fácilmente, ya sea en tecnología o en moral.
Hi, your article was interesting, Anyway i'm new on steemit. Nice to meet you!
After some exchange hacked now i just only using DEX expect for buying token from IEO on centralized exchange like binance, bittrex. It is difficult to find a centralized exchange that is reliable and easy to use now, Only binance and bittrex which I still use.
What DEXs are you using? The problem with DEXs is usually related to their low volume so while the fees are lower that's negated by the spread.
So far only forkdelta but i try Airswap and i think it's good. Before i use bancor but after hacked scandal i leave them.
Oh, I wasn't aware of Bancor's scandal, good to know.
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@martin.mikes coordinator of @kedjom-keku
good
good
I will check this one out. It's exciting to see the rapid advancement of DEXs and hopefully this will translate to better ways to offramp crypto as well.
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More losses because of hacks? Exchange needed to up their game.
This is extremely a bright future opening kind of a project. We shall need more like this but let's first see how this goes.
Interesante artículo. Me suscribo para leer mas
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If McAfee supports it, I'd say that's a strike against it, no?
Yes! ...
Most of McAFee shills will become worthless if you came late to the party. Price skyrocket within few hours then even after a year of waiting you will be at a loss. Beware of McAFee shills.
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your post is very important.i like your post..thank you for sharing with us... Have a great day💜👍
More centralized exchange? Guess we can not truly escape centralization. Though when it comes to exchanges, it is necessary i guess.
hello mr.hatu,thank you for the information. I will try to use it.
Informative, no matter the rhetoric or speculations.
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Its revolutionary...
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It's look like DEX becoming a trend again after several centralized exchanges had many problems, I was happy to hear that
Hello 😅😅
Los intercambios centralizados son un mal necesario por ahora y DEX es hacia donde debemos avanzar. Todos los escándalos, como usted mencionó, el comercio de lavado y la falsificación de volúmenes, muestran que no se puede confiar en terceros de cualquier tipo y se corrompen fácilmente, ya sea en tecnología o en moral.
Los intercambios centralizados son un mal necesario por ahora y DEX es hacia donde debemos avanzar. Todos los escándalos, como usted mencionó, el comercio de lavado y la falsificación de volúmenes, muestran que no se puede confiar en terceros de cualquier tipo y se corrompen fácilmente, ya sea en tecnología o en moral.
Congratulations @hatu!
Your post was mentioned in the Steem Hit Parade in the following category:
Almost 3 weeks not active and i hear many news from crypto world. This was suprising.
Dex is only answer for current market, Centralized exchange just become greed and can not be trusted!
Why not just use Bitshares? It's way faster and has been in development for like 5 years. Dan made it and it's the basis for this whole website and Eos
Too much exchanges that pop on the crypto space lately. Most of them will not gain traction and face iquidity issue.
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Usefull. Thanks for sharing.
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SwitchDex is cheap, secure, now more exchanges will be DEX , surely give a try
That's really cool, there's so many DEXs to keep up with now.
hola soy nuevo :D
good
the battle is for GOD
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