Exciting news: The crypto market playground welcomes a significant newcomer! The EDX Markets, a brand-new cryptocurrency exchange, is officially launched on Tuesday, June 20th, 2023.
If it gains global traction, it has the potential to redefine the existing concept of crypto exchanges, offering us an entirely fresh perspective on trading and safeguarding our digital assets.
Let’s explore the innovations it brings forth and discuss the forecasts for its future.
WHAT IS EDX MARKETS?
The EDX exchange platform is a digital marketplace that facilitates the trading of cryptocurrencies. It serves as a meeting point for firms, enabling cryptocurrency trading. It provides an environment where these firms can execute transactions involving various cryptocurrencies. As a marketplace where prices are negotiated, similar to traditional stock markets, the platform does not exercise direct control over customers’ digital assets. It means that users retain control and ownership of their assets throughout the trading process.
Briefly, EDX is supposed to provide users with greater autonomy, security, and transparency in managing their digital assets.
So far, the platform is offering Bitcoin, Bitcoin Cash, Ethereum, and Litecoin trading services. “We have a limited set of tokens because until there is more regulatory clarity, we don’t want to trade something that’s potentially a security,” EDX Markets CEO Jamil Nazarali said on their LinkedIn profile.
The thing is, EDX Markets is backed by several Wall Street giants including Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial. As we assume that these reputable entities possess the necessary expertise in their field, this is intended to guarantee the integrity of the operations conducted by EDX Markets cryptocurrency exchange.
A PROMISING ALTERNATIVE TO CUSTODIAL MODELS
This non-custodial platform represents a potential solution to the challenges facing custodial models. EDX Markets stands out as an unconventional form of exchange business practice, differing from the majority of exchanges that typically provide their wallets. Unlike these exchanges, EDX Markets does not require users to store their cryptocurrencies and funds within its platform.
This is a good thing, as we all are aware of the recent problems faced by FTX. The downfall of the FTX exchange has taught us the importance of exercising caution when storing our digital assets.
In addition, there have been significant allegations against Binance, another custodial exchange, regarding inadequate management of client assets. Clearly, the management of assets is a delicate matter.
It’s important to note that both custodial and noncustodial models have their own advantages and disadvantages, and the choice ultimately depends on individual preferences and risk tolerance. However, it is crucial for crypto developers to grasp the shortcomings of past approaches in order to craft innovative and contemporary methods.