A 4-year Adventure through Bulls and Bears: How CoinEx Gained Market Recognition
The year 2021 represents a major milestone in the history of crypto. In 2021, the crypto market has attracted the attention of traditional investors. From PayPal’s support of Bitcoin through the auction of NFTs at auction houses such as Christie’s and Sotheby’s to the boom of metaverse assets and GameFi, digital assets have gradually captured the spotlight in all walks of life, and the continued bull market has also brought incredible returns to veteran investors in the crypto sector.
For investors, there are no easy profits in the crypto industry, which is an immature market frequently swayed by state regulations and uncertain factors. As such, not all investors are fortunate enough to enjoy the benefits of crypto assets. For instance, they may suffer huge losses due to hackings of DeFi contracts, hacked exchange funds, shitcoins, etc.
CoinEx, a crypto exchange founded in 2017, has stood the test of time and built a good reputation. In the four years since its inception, the exchange has registered a remarkable track record, which is gratifying to its loyal users and has drawn many crypto beginners.
From a mining pool to a crypto exchange
Speaking of CoinEx, we should first talk about ViaBTC Group and ViaBTC Pool. ViaBTC Group was founded by Haipo Yang, a young entrepreneur who started working with Bitcoin ever since 2011. Mr. Yang’s experience as one of the earliest investors and advocates of Bitcoin had also laid a solid foundation for the crypto start-up he later built.
In 2016, Mr. Yang started to develop a mining pool named ViaBTC on his own, which was launched just two months later. At the end of December in 2017, he founded a crypto exchange called CoinEx.
CoinEx was founded during the height of the Bitcoin bull in 2017, but it was not good timing. As the crypto sector transitioned to a bear in 2018, plenty of start-up teams ended up in failures, and only a few survived. The fact that CoinEx remains active to this day proves its strength. Four years later, CoinEx has built an extensive product range, covering spot trading, contract trading, finance, margin trading, AMM, and mining. Supporting multiple languages, the exchange has now become a global provider of all-inclusive crypto services.
From 2017 to 2021, plenty of exchanges have gone bankrupt or run away with funds. In view of this, many crypto users wonder what drives CoinEx to keep growing. Generally speaking, CoinEx’s success is backed by the following factors:
1) An outstanding tech team
At their core, crypto exchanges offer two basic services: asset custody and trade. As the focus of all exchanges, these two services are based on technology, which is of paramount importance in the crypto space. We know that many well-known exchanges have suffered from hackings. Although they all compensated their users for the hacked cryptos, such incidents reveal a weak security awareness, poor management, or insufficient technical capacity.
Founded in 2017, CoinEx is backed by the team from ViaBTC Pool, which was independently built by CoinEx’s founder Haipo Yang within three months and has been running steadily to this day. His technical capacity is thus self-explanatory. Meanwhile, CoinEx has never suffered any security breach since day one. From all the above, we have every reason to trust CoinEx’s internal management and technical capabilities.
2) CoinEx’s commitment to products and services
Though the security and technical capacity of a crypto exchange are building blocks for its services, users are more concerned about the ease of use of its functions, the availability of new appealing features, and the quality of tokens listed on the platform. In this regard, CoinEx has stayed updated with market trends and continued to offer functions that appeal to users.
CoinEx used to offer only spot trading in the early days. To meet the trading needs of different users, it now also supports contract trading, margin trading, and financial products. Additionally, CoinEx gives priority to user experiences. For instance, it has introduced functions such as Take-Profit & Stop-Loss and PNL Analysis. At the same time, CoinEx has adopted strict screening criteria for the quality of tokens to be listed on the exchange to ensure that users could benefit from valuable cryptos.
3) Empowering CET to benefit CoinEx users
CET is a platform-based token issued by CoinEx in 2018. CET holders can enjoy many benefits in the CoinEx ecosystem, such as transaction fee discounts. Additionally, CoinEx has also rolled out the CET repurchase and burning scheme. The exchange spends 50% of its fee revenue on repurchasing and burning CET every day, which makes it deflationary. As such, when users’ trading volume increases in the event of a bull market, the number of CET burned would also go up, which underpins the price. In the meantime, CET holders could profit from the rising token price.
According to the current figures, since the beginning of 2021, the CET price has soared about tenfold. As it outstrips most mainstream cryptos, CET has also attracted much attention from crypto investors.
4) Building a global presence
CoinEx is one of the few mainstream exchanges that have built a global presence. To provide services for users around the world, the exchange has planned for its global expansion since the early days.
Relying on a strong operation and maintenance team and its profound expertise, ViaBTC has been serving global miners for many years. As a matter of fact, many ViaBTC miners are also CoinEx users, which is one of the driving forces behind CoinEx’s pursuit of a global presence.
At the moment, CoinEx has achieved a terrific track record in its globalization. The platform now supports multiple languages and provides 24/7 services. It has gained a steady foothold in markets such as Southeast Asia, the Middle East, South America, Japan, South Korea, and Russia.
5) The growing CSC public chain ecosystem
In 2021, crypto inventions such as DeFi, GameFi, the metaverse, and NFT have triggered a crypto boom, which has brought both opportunities and challenges to CoinEx. For instance, the advancement of DeFi has made it more challenging to run a centralized exchange. Moreover, the new crypto technologies have also impacted the business of crypto exchanges, which, in turn, changed the market landscape.
CoinEx has long been aware of the challenges posed by DeFi, so it decided to develop its own ecosystem via CoinEx Smart Chain (CSC). As a high-performance decentralized public chain that supports EVM, CSC features fast transactions, low transaction fees, and compatibility with EVM (Ethereum Virtual Machine). With CET as the gas, the public chain allows developers to build their own decentralized applications on the blockchain.
Amidst the 2021 DeFi boom, CoinEx has also pursued investments in DEX, lending & borrowing, aggregators, DAO, and cross-chain bridges and sought to incorporate these emerging sectors into CSC. Right now, CSC has launched its mainnet and introduced the CSC Global Hackathon Grants and a series of DApp support programs to provide funding and marketing support for outstanding projects. This well-rounded incubation process has also attracted droves of first-rate developers and loyal crypto users and injected vitality into the public chain.
Faced with the cutthroat competition of the highly cyclical crypto market, only strong teams that could stand the test of bulls and bears will be able to survive over the long term. This is particularly true for exchanges that serve crypto users. Going through bulls and bears, CoinEx has achieved sustained growth during the past four years relying on its crypto-native background and strong capabilities. The exchange’s long-term commitment is also a key factor for its success.