💊 [Analysis] Decentralized crypto exchanges can solve fake volumes and malpractices – Joseph Young

Fake trading volumes plague the crypto exchange industry. Centralized exchanges are incentivized to wash trade and pump their trading volume for marketing purposes. CER, a crypto research group, recently published a report stating that many exchanges are likely to be pumping their trading volumes via various methods. &nbsp Decentralized exchanges (DEXs) are a potential solution to the fake volume problem and provide multiple other benefits. DEXs provide more security, transparency, and liquidity. First, DEXs remove the need for a third party custody solution (a central point of failure) as users hold their own funds. Second, everyone can see all the trades and it is quite easy to see if some trades are suspicious. Lastly, decentralized exchanges can share a pool of liquidity on exchange protocols, they can have significantly more liquidity than centralized platforms. However, DEXs currently face the issues of poor user experience/interfaces and the lack of market makers.