Crypto giant Binance was in the news this week after its founder Changpeng Zhao (CZ) pled guilty to money laundering charges and stepped down from the role of CEO, following a massive $4.3 billion fine from the US Department of Justice. The settlement was imposed due to Binance’s lack of compliance with US federal law and subsequent ties to money laundering. 

The impact at a glance

The whole debacle has had a significant impact on the crypto markets. Cryptocurrency prices fell sharply following the news of the fine and CZ's departure. Bitcoin fell by over 10% in the days following the announcement, while other major cryptocurrencies also experienced significant losses. The incident has also shaken investor confidence in the crypto industry as a whole. Some investors are now questioning the safety of their assets and whether the industry is properly regulated. It’s too early to say what the long-term impact of the incident will be, but it is clear that it has raised concerns about the future of crypto.

Is there a silver lining?

It is possible that the incident has had a positive impact on the DEX ecosystem, highlighting the importance of decentralisation and increasing awareness of decentralised exchanges among new investors as a viable alternative to CEXs. While CZ’s contribution to crypto is undeniable, recent events have made it clear that decentralisation is the way forward. The fact that decentralised exchanges are not controlled by any single entity makes them more resistant to censorship and less susceptible to regulations.

Carrying the Torch

Binance has been a pioneer in the crypto industry, and was the exchange of choice not just for retail traders but also established institutions. DEXs can build on this legacy by offering innovative services that meet the needs of all traders, small and large.

tanX prides itself on successfully bridging the gap between CEXs and DEXs with intuitive UI and impressive features. Our trading platform offers security, user-friendliness and economic superiority simultaneously, making the perfect platform for traders looking for the ideal DEX.

Want to make the switch to tanX? It’s as easy as a click.