CEXs Will Bring More Users to Crypto Despite FTX Collapse, X10 CEO Ruslan Fakhrutdinov Says

Reflecting on the damages caused by the FTX implosion, Fakhrutdinov predicted that centralized exchanges would bring more users to the crypto world.

As the popularity of crypto continues to grow, key players in the industry are exploring the factors that are contributing to the mainstream adoption of digital assets. In an interview with the chief executive of X10, Ruslan Fakhrutdinov, confirmed that despite the collapse of the FTX, the centralized exchange plays a significant role in crypto adoption.

Reflecting on the damages caused by the FTX implosion, Fakhrutdinov predicted that centralized exchanges would bring more users to the crypto world. In 2022, the collapse of FTX led to the loss of over $8.9 billion, which plunged most companies into financial crises.

Factors Contributing to Growing Adoption of Crypto

As the crypto industry recovers from the FTX saga, Fakhrutdinov believes CEXs will be the go-to platform for retail users seeking to buy and sell crypto assets. The official project is that over 100 million retail clients will gain exposure to crypto assets through CEXs.

The executive predicted that the CEXs will positively change the crypto sector by onboarding larger audiences. Compared to the decentralized exchanges, Fakhrutdinov anticipates that CEXs will onboard more retail clients to the digital space.

He noted that the CEX exchange allows customers to join the decentralized exchanges seamlessly. Besides the CEXs being the game changer in the crypto sector, Fakhrutdinov compared the services provided by the centralized exchange to those offered by hybrid exchanges.

Firstly, the executive noted that the CEXs offer an exclusive trading experience compared to a decentralized platform. He said that to attain the CEXs’ success level, decentralized platforms must invest in improving the user experience and restructuring their marketing strategy.

In his statement, Fakhrutdinov observed that the decentralized exchanges silently embraced the crypto-oriented marketing strategies unsuitable for these platforms.

Difference Between CEXs and DEXs

Based on their decentralized nature, the CEO advised the DEXs to implement innovative marketing strategies that blend with the needs of the retail customers. To attain success, Fakhrutdinov urged the decentralized platforms to embrace a research-based marketing strategy rather than a crypto-oriented approach.

The executive also noted that CEXs had established stronger customer relations than DEXs. The executive noted that the decentralized exchange is not regulated by a central authority, which creates privacy and trust issues.

Depending solely on advanced technologies such as the smart contract, the DEXs eliminate third-party involvement in buying and selling crypto assets. The DEXs allow the users to complete their transactions directly from their wallets to the respective crypto exchange.

The DEX users are responsible for keeping their money safe by ensuring their private keys are safe and secure. The DEXs are built on blockchain networks such as Ethereum that support smart contracts.

Despite the DEX’s distinctive characteristics, the CEXs and hybrid exchanges owe a larger market share in the crypto sector. Dune report shows that the DEX trading volume reached $3.56 billion in the last 24 hours.

Significance of CEXs in Crypto Adoption

Compared to CEXs, the DEXs trading volume is less by four times than the Binance trading volume. Dune report shows that Binance’s trading volume reached $15.1 billion in a day, ranking as the world’s largest CEX by trading volume.

The Dune report illustrated that DEX’s volume is slightly below that of hybrid exchanges. A hybrid exchange combines the features of CEXs with those of DEXs to reduce costs and boost efficiency.

The hybrid exchanges were launched after the fallout of FTX to grant the user complete control of their assets. In particular, hybrid exchanges were developed to bridge the existing gap between CEXs and DEXs by offering users improved security and adequate liquidity.

Fakhrutdinov believes hybrid exchanges will restore customers’ trust in the crypto sector. The executive envisages the next generation of crypto exchange will be trustless but permissionless.

The X10 platform ranks among the best-performing hybrid exchanges seeking to offer fast and reliable transactions. Formed by former Revolut executives, the X10 platform uses the StarkEx layer 2 engines to execute trade settlements seamlessly.

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