This exchange is celebrating its fourth-year anniversary with a bold move to empower the crypto community

Users have concerns about centralized exchanges’ transparency and trustworthiness, but decentralized alternatives lack liquidity and security. Crypto exchange Phemex, celebrating its 4th year anniversary this week, is poised to usher in a new era, where traditional barriers in finance are dismantled and users have unprecedented control over their assets and financial destinies.

Centralized exchanges (CEXs) have played a pivotal role in expanding the cryptocurrency landscape. With better user experience, accessible fiat on-ramps and unmatched liquidity, CEXs helped millions of users to kick off their crypto journey. However, 2022 showed that even top CEXs can be prone to security and transparency issues.

As users flocked to decentralized alternatives, they quickly realized that decentralized finance (DeFi) is not exactly smooth sailing, either. Poorly designed apps and constant security breaches showed the need for a solution that brings the best parts of CEX and DEX dynamics.

To combine the security, liquidity and accessibility of centralized platforms with the transparency and autonomy of DeFi, the top-five crypto exchange Phemex devised a hybrid model where users have visibility and control over the platform’s inner workings. Phemex calls itself a “semi-centralized” exchange where Web3 is utilized to achieve transparent and distributed ownership.

Phemex now serves 5 million users globally and boasts a robust daily trading volume of over $10 billion. Celebrating its 4th anniversary, Phemex has unveiled two special campaigns designed to express gratitude to its loyal community. The first initiative is a fee-free trading day on November 25th, Phemex’s birthday. During this day, users can enjoy unlimited contract trading without incurring fees. The second campaign aims to reward all Phemex users, ensuring that every member of the Phemex community receives a special token of appreciation.

Phemex currently focuses on its Web3 ecosystem, Phemexia, along with its utility and governance tokens. The Phemex Token (PT) will serve as the utility token of the Phemexia ecosystem to be used in trading, gas, deposit and withdrawal fees on Phemex. Token holders can share in a daily portion of Phemex’s USDT contract trading fee revenue and have the opportunity to actively participate in PhemexDAO decision-making processes by using “vePT” governance tokens, which are obtained by staking PT.

Source: Phemex

The ongoing "Phemex Token to the Moon" event precedes the native token launch allowing the Phemex community to get involved with Phemex token-related preparations. Users will play an active role in determining the value of Phemex Token through the "PT Bidding" event on November 28th.

Aside from PT, Phemex has launched a soulbound token named Phemex Soul Pass (PSP) which serves as the entry key to the Phemexia ecosystem. PSP allows users to mint and unlock exclusive platform benefits while securely recording users’ activity on the platform and rewarding them based on their interactions.

How Phemex’s hybrid approach helps

The hybrid exchange model introduced by Phemex aims to combine the best of centralized and decentralized exchanges, offering its users more security, transparency and autonomy as a result.

“For four years, Phemex has stood as a dependable partner in cryptocurrency trading,” Stella Chan, chief operations officer at Phemex, said, adding:

“As we celebrate our 4th anniversary, we’re excited to expand beyond providing a reliable trading platform to users worldwide and make strides in introducing our Web3 ecosystem to our community.”

Phemex is a licensed and regulated exchange that provides substantial liquidity and employs security measures to keep users’ funds well protected. For its vision to move toward decentralization, the hybrid crypto exchange uses transparency as a key step to establish trust in the wider crypto landscape. Phemex was among the first to implement Merkle-tree proof-of-reserves as well as proof-of-solvency, giving public access to its operations for better visibility.

Unlike most centralized exchanges, the hybrid platform bridges the gap between CEX and DEX by giving users more control over their financial journey. With Phemex Soul Pass, the platform offers a way for users to participate in governance and profit sharing, and PT holders can stake their tokens to earn rewards and participate in governance.

Users will decide the token’s value

Chan explained that the second stage of the Phemex Token to The Moon event will see users participating in a fair and transparent bidding mechanism:

“Everything we introduce and undertake serves as a testament to our commitment to ensuring that our users grow with us, take advantage of a unique Web3 ecosystem, and remain in control of their financial journey.”

The lack of transparency and trustworthiness among centralized exchanges stands as a major obstacle to mainstream crypto adoption. The hybrid approach introduced by Phemex has the potential to overcome the shortcomings of the current CEX landscape With Phemex's commitment to increased autonomy and revenue-sharing, this model empowers traders to participate not only in shaping the platform's future direction but also to benefit from its growth.

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