In the rapidly evolving world of cryptocurrency, significant changes have occurred within the crypto sector, particularly concerning crypto exchanges, over the past few years. Centralized exchanges (CEXs) have experienced remarkable growth, transforming into industry giants. These platforms have played a vital role in facilitating the buying, selling and trading of various cryptocurrencies, serving as intermediaries between traders and the digital asset market.

Centralized exchange shake-ups and the rise of DEXs

However, amid the remarkable growth and success of centralized exchanges, the crypto sector has also witnessed shake-ups that have had a profound impact, eroding the trust in these platforms. One notable example reverberating throughout the industry was the collapse of FTX, a prominent centralized crypto trading platform.

As a result, many traders flocked to decentralized exchanges (DEXs) that offer a peer-to-peer trading environment where users retain control over their funds and eliminate the need to trust a centralized authority. However, they also have several disadvantages compared to their CEX counterparts, like lower liquidity, more complex and less user-friendly interface, slower transaction speeds or higher network fees. 

A unique approach

Can the strengths of centralized and decentralized exchanges be combined to create hybrid exchange models? One example is the cryptocurrency exchange Phemex, which is partly centralized and partly decentralized. They are pioneering a new semi-centralized platform model. This approach helps the platform offer traders an efficient and fast trading experience while remaining transparent and secure. 

For example, users can prove their specific account’s reserves by implementing a hierarchical deterministic cold wallet system. The exchange’s reserves can be verified by every account, showing the assets and liabilities. This proof-of-solvency earned Phemex certifications from CoinMarketCap and CoinGecko, underscoring Phemex’s strategy to win and retain the trust of traders by offering more transparency.

Phemex stands out in the crypto exchange landscape not only for its strong emphasis on security and transparency but also for its innovative approach to community building. Through its Web3 ecosystem, Phemexia, the platform allows users to become stakeholders by owning a piece of the exchange. This unique feature sets Phemex apart, creating a sense of ownership and engagement among its users, fostering a community-driven environment that goes beyond traditional trading platforms. 

By combining a focus on security and transparency with community ownership, Phemex is redefining the way users participate in and contribute to the exchange ecosystem. An integral part of this community is the soulbound token (SBT), which acts as a digital passport. 

Traders who meet the requirements can mint an SBT called the Phemex Soul Pass (PSP). Once users mint their SBT, they gain access to the ecosystem and its privileges, including the Phemex Token. This token grants exclusive privileges on Phemex itself as well as the PhemexDAO, including voting rights on significant decisions involving the platform’s financial management, external partnerships and overall growth. Moreover, Phemex Soul Pass holders have the opportunity to access Phemex VIP benefits at no additional cost and avail of discounted trading fees. This creates a positive cycle, as the reduced trading fees contribute to a favorable trading environment for PSP holders. 

A new Web3 ecosystem open to all

While previously only whitelisted users could mint a Phemex Soul Pass, the Web3 ecosystem recently opened its doors to everyone. Chief marketing officer at Phemex, Stella Chen, announced:

“Our long-awaited Phemex Web3 world is finally open to all! Any Phemex user can now qualify to mint their Phemex Soul Pass and join in xPT Pre-mining [...]. Likewise, this means significant contributors can rack up voting privileges within PhemexDAO and participate in decentralized decision-making for the upcoming direction of Phemex.”

Source: Phemex

In Phemexia Web3, access is granted through contract trading activity, making it convenient for exchange users who are already traders. Participating in crypto trading on Phemex offers more than just regular profit and loss opportunities. Traders can also earn the PSP, gain DAO governance rights and unlock exclusive rewards, all while doing what they love. This initiative reflects Phemex’s commitment to promoting transparency and development in the Web3 ecosystem.

Engaging users in a Web3 community

Phemexia engages users on a fundamental level. In addition to allowing users to own a piece of Phemex, the Web3 ecosystem gamifies learning about crypto and is home to the xPT pre-mining event.

As mentioned, the Phemex community is open to all — experienced and novice traders can join the ecosystem. For beginners, there is the “Maze of Knowledge.” In this maze, the inexperienced can start their crypto journey by learning all the essential things about crypto through the Phemex Academy. Users can even “learn and earn,” gamifying the learning experience.

Another way to engage community members and offer them privileges is the xPT pre-mining event. Any user with the PSP can join and receive xPT airdrops, ultimately giving them voting rights for the Phemex DAO. With the xPT airdrops, participants will also enjoy trading fee discounts and complementary Phemex VIP privileges.

On top of that, the exchange is planning a 100 ETH prize pool activity by the end of August, exclusive to the holders of the ecosystem’s soulbound token. The platform’s Twitter account will provide updates on activity details.

Phemex, in conjunction with the Web3 community Phemexia, presents a groundbreaking avenue for traders to invest in and engage in crypto trading. Going beyond conventional exchanges, Phemex introduces a gamified learning experience that educates users about cryptocurrencies and enables them to actively participate in the platform’s governance. This innovative approach to community building establishes a dynamic and interactive environment, empowering users to expand their knowledge, contribute to decision-making processes and shape the platform’s future.

Learn more about Phemex

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