Chinese users launched a "coin withdrawal campaign", ETH and other stocks plummeted, and exchanges hurriedly defended
On September 6, Chinese users launched a "withdrawal" campaign. Although the momentum was greater than the substance, the data showed that the stock of ETH and other assets on centralized exchanges was plummeting. The CEXs began to defend in a hurry, and the real all-out war will come.
According to media reports, in the early morning of the 6th, some centralized exchanges experienced difficulty in withdrawing coins and contract downtime. Among them, some netizens of Huobi reported that the ETH contract could not be withdrawn. The prompt is "Wallet maintenance, withdrawal is suspended", and it will be resumed later. Gate.io also experienced slow withdrawals.
Although major centralized exchanges have clarified, the fact behind it is that DeFi coins led by ETH are flowing out in large quantities. In particular, ETH has led the decline recently, and many users are buying bottoms on centralized exchanges, and then withdraw coins to DEX mining. According to data from CryptoQuant, the stock of ETH in centralized exchanges is falling off a cliff. (The red line is ETH stock)
Interestingly, Chinese users launched the "9/6 Coin Withdrawal Campaign" on this day, and it was widely spread on WeChat groups, Weibo and other platforms. The momentum of this activity is greater than its substance, and it has not had any impact for the time being. So far, it is not true that the exchanges restrict withdrawals. Wu said that according to the blockchain survey, the withdrawals of first- and second-tier exchanges are basically in a normal state, but there may be some small delays due to lending or technical failures.
Has the war between centralized exchanges and DEXs begun? not yet.
People recalled the war between FCoin, which was trading and mining a few years ago, and traditional exchanges. The three major companies felt a huge threat, and not only quickly began to copy the FCoin model, but because it was a zero-sum game, various public opinion attacks emerged in an endless stream.
The DeFi ecosystem and centralized exchanges have a certain complementary relationship. Liquidity mining is a financial management model. Except for the first mine, the rate of return cannot reach the level of a "casino". If you want to obtain ten times, one hundred times, or one thousand times the income, many people choose to use it in the secondary market of the centralized exchange. operations, including the use of leveraged contracts. The three major companies are also crazy about DeFi currencies, and there are even some projects that know about CX and funds, such as MantraDAO.
Although the current AMM mode of DEX has certain advantages, a large number of EOS were bought from Huobi and sold by Defibox a few days ago, but after all, it is limited to a few single currencies, and the number and mode of DEX currencies are different. The richness cannot be compared with mainstream exchanges.
But if it is said that DEX and CEX have no competition, or even completely complement each other, it is self-deception.
DEX has already invaded some areas of centralized exchanges, such as listing coins. Good projects no longer need to pay listing fees, engage in 1EO, and seek endorsement from big Vs. Liquidity mining has opened up a new zero-start mode. Another example is the transaction of mainstream specific currencies under the AMM model, which can obtain better liquidity and depth on DEX.
The field of future derivatives may also become an area to be invaded. Sanya Capital, led by Su Zhu, has invested in almost all decentralized contract trading platforms. In his view, contract products based on mortgages and transactions can interact with each other in a variety of ways, becoming a derivatives platform covering many different mechanisms from AMM to centralized limit orders.
The defense of centralized exchanges has already begun, and they first chose the "proxy mining model". Because liquidity mining has a certain degree of complexity, "substantial mining" is very popular, such as bigone, matrixport, cobo, Biyin Wallet, etc. have all launched the proxy mining mode, and charge a certain fee for it.
On the 2nd, Huobi Global said that it will prepare 50 million USDT equivalent blockchain assets for DeFi liquidity mining. The first phase of 10 million USDT assets will be launched in batches, and all rewards generated by mining will be given back to participating activities to lock up Users of HT and HPT.
Binance has gone further, combining liquidity mining with 1EO. Announced the launch of the "Binance New Coin Mining" platform on the 6th. Users can mine new assets on the platform. The first project launched on the platform is Bella Protocol, a "one-click" Defi encryption asset management platform. Users can participate in new currency mining and exchange BNB, BUSD or ARPA Tokens are added to three separate pools to mine BEL.
In addition, mainstream exchanges have also participated in the investment of many decentralized institutions.
The counterattack or imitation of centralized exchanges (institutions), the fastest is Sun Yuchen. He quickly imitated almost all DeFi elements such as decentralized exchanges, liquidity mining, and stable coins, and became a mess because of the proliferation of counterfeit coins.
Centralized exchanges do not have the genes needed by DeFi or Dex, and any centralized institutions that try to imitate Uniswap and YFI are unlikely to succeed in the end. DeFi is closer to the classical currency circle. Credit comes from codes and communities. Centralized institutions need absolute control over interests and management, and credit comes from enterprises and individuals. DEX and DeFi will continue to erode the field of CEX, but it is unlikely to eliminate (imitate) opponents, and it is a possible trend for each to win.
