Game of Cex-Power game of centralized exchanges

Quick Take:

CEXs are gradually losing their position and need new solutions to keep their growth momentum.
The effective solution to this problem is to target new users instead of trying to attract old users.
Binance, FTX, and Crypto.com are prominent names in the game between CEX exchanges, in which Binance is the most prominent name.

Overview to CEX (Centralized Exchange)
CEX (Centralized Exchanges), also known as a centralized exchange, is simply an exchange that is run and managed on centralized servers.

In Crypto, a CEX has a basic function of providing a place to trade, buy & sell Cryptocurrencies, additional features of CEX can be mentioned as trading of Crypto-related derivatives, NFT marketplace, OTC,…

Typical examples of CEX can be mentioned as Binance, FTX, Coinbase, Crypto.com,…

Background of CEX – Act or be eliminated

CEXs have long been considered the gateway to bringing new users to Crypto, most of the brothers who have or are entering the market have themselves a Binance or FTX account. However, with the development of DeFi in general and DEXs (decentralized exchanges) in particular, CEXs are gradually losing their market share.

This is relatively understandable when the ecosystems are more and more perfected and developed, creating a much larger yield and opportunity for users than CEXs can bring.

In essence, centralized exchanges are a big company, and when this company sees its profit growth rate dwindling, necessary measures must be put in place to maintain its growth. development, otherwise a future of elimination is entirely possible.

So what are the measures put in place?

Although many solutions can be implemented, there are essentially only two main ideas:

Attract old users back to using CEX.
Attract new users and new cash flow.

With a wallet like Metamask, you can freely experience a variety of ecosystems and look for many different profit opportunities in the DeFi market. This is much more attractive than leaving assets in place and receiving “banking” interest on CEXs.

Therefore, for those who have been participating in Crypto for a while, it is very difficult for them to come back and use the features on CEXs, at most when they need to save fees, they should trade on CEX and then transfer assets.

Analysis of the moves of the CEX – Who Stick out a mile?

Below is a summary of notable moves to attract new users of CEXs:

Binance:

On June 17, launched Featured Marketplace: This marketplace of Binance allows minting, buying, and selling of NFTs related to big brands as well as those of famous people (Formula E, The SHOW Kpop, ..). This Featured. The market has been running ads on Facebook a lot lately.
June 24, Launched Binance NFT Marketplace: This is a marketplace for NFTs of Gaming projects and other NFTs of users. In addition, the Binance NFT marketplace also supports IGO, a launchpad dedicated to GameFi projects.
On October 12, launching the Binance Fan Token platform: Fan Token is the token of the teams, sold via launchpad. Fans who buy Fan tokens will be able to support the team they like, and can also enjoy benefits such as participating in Fan Voting, receiving Fan Badges, and limited edition NFTs.
Continuously support and list hot topic tokens like Metaverse, meme coin,…

Read more: WHAT IS METAVERSE?

Almost all the top Metaverse projects with the highest capitalization are listed on Binance

FTX:

On June 4, spent 135 million to change the name of the Miami Heat basketball team’s home field to FTX Arena.
On June 7, spent 210 (14597) million to register to change the name of the world’s top Esports gaming organization TSM to TSM FTX.
On August 24, spent 17.5 million dollars to change the name of the California Memorial Stadium to FTX Field.
On October 11, launching NFT Marketplace supporting NFTs on Solana and upcoming NFT of Ethereum.

Coinbase:

On October 12, Coinbase announced the launch of Coinbase NFT, an NFT marketplace similar to the Binance NFT marketplace or the FTX NFT marketplace.

Crypto.com:

On March 23, launching NFT Platform that allows mint, buy and sell NFTs related to big brands as well as celebrities.
On November 17, the Crypto.com exchange spent 700 million dollars to rename the famous stadium The Staples Center in Los Angeles to Crypto.com Arena.

Huobi

September 14 introduced a support package worth 10 million USD to accelerate the development of GameFi projects.
On November 1, the trial version of Houbi NFT Marketplace was launched to expand the development of the GameFi and Metaverse segments.

Kucoin

On November 17, the announcement of the support package “Kucoin Metaverse Fund” worth $ 100 million to develop the Metaverse ecosystem.

OKEx

September 2 (99469), launched two products including NFT Marketplace and DeFi Dashboard.

To summarize, The moves of CEX exchanges are quite similar, including:
Support hot trends in the Crypto market such as Gaming, Metaverse,…
Support for NFTs is quite understandable as NFTs have proven to be extremely useful tools for attracting new users.

NFT is combined with big brands and famous names to help attract more fans to Crypto.
Increasing brand recognition can be seen in top names with great financial potential such as Binance, FTX, and Crypto.com. These CEXs don’t hesitate to spend money to run ads or buy naming rights to gain access to non-Crypto user files.

How CEXs attract value to CEX tokens

CEX Token can be understood as the foundation token of CEX tokens, created to provide certain benefits in the system to their owners, this is also a common feature of CEX Token.

Some of the specific benefits of the CEX Token can be followed (these benefits may vary from CEX to CEX):

Transaction fee discount.
Get Airdrops.
Free withdrawals.
Join IEOs.
Become an ecosystem token like (BNB of Binance Smart Chain or CRO of Cronos).

BNB & Binance exchange

Binance token (BNB) is a utility token that provides certain benefits to Holders. Within the scope of the Binance exchange, BNB has several prominent use cases:

Outside of the Binance exchange, BNB is also used to pay for transaction fees, pay for goods and services, and participate in DeFi on the Binance Smart Chain ecosystem.
Besides, the BEP-95 mechanism also started to be applied on November 30.

FTT and FTX exchange

FTX Token (FTT) is the Utility token of the FTX exchange, it provides certain benefits to Holders, and there is a slight difference between the benefits of Holders and Stakers. Within the scope of the FTX exchange, FTT has the following prominent use cases:

CRO & Crypto.com

CRO token (CRO) is a utility token that provides certain benefits to Holders. Within the scope of the Crypto.com exchange, CRO has the following prominent use cases:

In addition to the scope of the Crypto.com exchange, CRO is also used to pay transaction fees, and pay for goods and services participating in DeFi on the Cronos ecosystem.

In summary, we can see that Binance is making more moves to capture value for BNB than the other 2 CEXs when in addition to the basic benefits of CEX tokens, the exchange has also applied a new burning mechanism to increase the speed of BNB burning. out of supply.

Comments and investment opportunities with CEX

CEXs are gradually realizing their problem and there are already names that are boosting brand awareness through various strategies.
BNB is the best brand identity exchange. We can see this when looking at the trading volume and traffic of the exchange.

Among CEXs that have their chain, Binance Smart Chain is also the chain with the highest number of users and locked assets. Currently, BSC’s TVL reaches 17 billion USD and the number of newly created addresses has been growing steadily.

BNB is also a token that has received a lot of attention when it comes to adding a mechanism to speed up the decrease in supply.

Future project of CEX

Increasing brand awareness will help CEXs attract a large number of new users if the Crypto market continues to grow.
However, more and more users will realize the convenience and opportunity of participating in DeFi when you can easily create new wallets without the cumbersome KYC like on CEXs. Ultimately as a result they move assets out of CEX.
CEXs that do not innovate and do not act now will gradually lose their position and may further disappear in this game.

Summarry:

A new problem needs a new solution, the current problem of CEXs requires them to target the new user file instead of trying to compete with the old user file. The current crypto is still in its early stage and the potential customer base is very large, so CEXs who know how to capture and increase their recognition can still develop well in the future.

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