The Rise of Decentralized Exchanges (DEX) & Regulations

The cryptocurrency market has been growing exceeding US$2T in market capitalization. Central exchanges (CEX) took the lead and accounted for a majority of trading volumes, however we are starting to see a shift in dynamics to decentralized exchanges (DEX) due to the following reasons

• If you’re assets are held on a CEX, you are not in full control (fund locking, withdrawal blocking, account shutdowns all happens). With DEX the users keep control of their funds in their own account
• Regulations are coming; CEX are susceptible to regulation
• The rise of DEX tools and high APY returns
• DEX provides a higher degree of privacy; anonymity and does not require KYC

Below we see the overall rise of the cryptocurrency market with increasing adoption by institutions and individuals powered by new funds, tools, vehicles and innovation.

Below we see central exchange volumes taking a lead

The Rise of DEX

The value locked in decentralized exchanges (DEX) and asset management is increasing with rise in demand for decentralized investment products. Demand for DEX to CEX has been increasing. DEXs could see further growth with regulations targeting CEX

2022 — The Year of Regulation

Cryptocurrency regulation is coming whether we like it or not. Cryptocurrency challenges pushes boundaries (or some may even say challenges) traditional financial model, with stablecoin being on the top of the mind with regulators across the globe. Samuel Bankman-Fried the CEO of FTX — Cryptocurrency Derivatives Exchange mentioned 2022 is ripe for introducing the first batch of regulations for the cryptocurrency space

FTX CEO: Expect the first crypto regulation in 2022 after years of preparations

Source: @justinaJustinas Baltrusaitis

Regulators across the globe are investing heavily on their knowledge in crypto space, Korea announced crypto taxation and Hong Kong just announced that cryptocurrency regulations will be implemented on or before July 1st.

Reference1: cointelegraph — DEX boost as regulators target CEX

DEXs could see demand boost as regulators target centralized exchanges

Reference 2: CoinDesk — Hong Kong Crypto Asset Regulation by July 2022

Hong Kong Monetary Authority Issues Discussion Paper on Crypto Assets and Stablecoins

Conclusion

I conclude solidifying three key concepts:

1. Cryptocurrency market is growing
2. Regulation is coming, very soon
3. DEX is on the rise (regulation favors DEX)

Introducing CoinFolioDAO

I take this opportunity to introduce CoinFolioDAO, the first investment portfolio DAO. Taking a decentralized approach, anyone anywhere can access quality investment portfolios created and governed by a community of researchers, investors and well-informed individuals. By anyone anywhere we are referring to a decentralized approach with no KYC and no investment hurdle. CoinFolioDAO saves the need for individuals to research cryptocurrency assets and maintain portfolios by themselves. There is one more thing worth mentioning, fees are much lower than traditional funds made possible by the DAO structure.

We have set sail on this journey and invite you to join us. Portfolios, research, insights, token launch, bounties and more to come.

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