Jalan Sukses: PhoenEx- Taking Cryptocurrency Exchange to a new Height

Earlier this year, Binance announced their intention to launch a decentralized exchange alongside a public blockchain, claiming that centralized and decentralized exchanges will co-exist interdependently in the future as they complement one another. Over time, we may see centralized exchanges shift towards hybrid solutions that embody benefits from both centralized and decentralized solutions.

Vitalik Buterin, the co-founder of Ethereum, commented that hybrid and semi-centralized exchanges are a much better solution than fully centralized exchanges. Where one of the main issues with centralized exchanges is the influence they have over the market, with their ability to decide which currencies to list or not on their exchange.

The concept of a semi-centralized or hybrid exchange is to add components of decentralization to a centralized platform. In some instances, users are able to trade directly from their wallets with tokens deposited into a smart contract, before trading commences. This ensures that no third-party entity holds and maintains custody for user’s funds, thus reducing potential security risks.

Hybrid Exchanges: Combining the Best of Centralized and Decentralized Solutions

Neither centralized nor decentralized exchanges provide complete functionality allowing institutional and retail investors to trade efficiently in the market. Centralized exchanges (CEXs) have become the standard as they provide quick processing of orders (low latency), liquidity, high-frequency, alongside marginal trading tools.

However, while making trusted third-party optional is one of the fundamental benefits of cryptocurrency, centralized exchanges act as third-party intermediaries. This requires users to trust their cryptocurrency funds to be kept safe by centralized exchanges, where there is potential for manipulation, government intervention, and loss of funds through hackers.

In the past, governments have shut down exchanges. For example, in September 2017, China’s largest exchange suspended operations after a national ban was set up. Centralized exchanges also fall susceptible to hacks that have cost users millions of dollars on exchanges such as Mt. Gox, Bitfinex, Bitstamp or Coincheck.

Another issue is that centralized exchanges can engage in front-running; a process whereby an exchange inserts its own (or others) orders first in anticipation of big price movements. In regulated markets, such behaviors are regulated, illegal, and policed strictly, however, as the blockchain industry is largely unregulated, the potential for undertaking such questionable behavior remains.

Decentralized exchanges help to reduce the risk of front-running as there is no centralized order book controlled by a single entity. At the same time, decentralized exchanges (DEXs) allow users to maintain control and custody of their funds. However, because of a greater push for privacy and anonymity on DEXs, it is difficult to regulate and collect necessary information from users of DEXs.

DEXs do not hold cryptocurrencies or have a central ledger. This bars DEXs from offering efficient latency that would motivate larger investors to participate in these markets to provide more liquidity. Generally, DEXs have lower liquidity than CEXs because of lower users’ adoption and thus, lower trades occurring throughout the platform.

PhoenEx as a Hybrid Exchange

PhoenEx, found online at https://www.phoenex.global/, is a hybrid-decentralized cryptocurrency exchange. PhoenEx offers the functionality, transparency, and liquidity of a CEX, alongside the security of a DEX.

PhoenEx wants to accelerate the adoption of blockchain technology and democratize ownership of cryptocurrencies. Thus, They aim to tackle challenges facing current cryptocurrency exchanges:

Suboptimal architecture - current exchanges are built on the fly without much of careful planning. They often take the simplest approach to get the system up and running, without taking into consideration the compounding load as traffic grows. Furthermore, layers of security that some exchanges integrate in the system add to the complexity resulting to slower trade speeds and delays in relaying information to the user interface. The flaws in the system create a ripple effect which ultimately leads to poor customer experience.
Lacks portfolio tracker - current cryptocurrency exchanges have have one thing in common: they all lack the option where users can see their buy price alongside the current price. PhoenEx team believes this is one critical aspect that every exchange must have.
Poor customer service quality - A comprehensive understanding of investors and traders’ wants and needs is paramount in running a successful exchange. Their time and money are at stake and slight delays in attending to customer incidents can be very costly for both parties.
Expensive fees - Exchange fees can be very expensive, from trading fees to withdrawal fees, especially to small investors and traders who only wish to get some returns on their investment. Moreover, some established cryptocurrency exchanges can charge ridiculous amount in order for a token to be listed in their system.

Incorporating the speed and liquidity of centralised exchanges with the security afforded in a decentralised exchange where the user owns their private keys. The PhoenEx trading platform will cater to both beginner and advance users. This means the non-critical components of the trading process will be housed.

In addition, PhoenEx exchange will offer the following:

PhoenEx exchange platform will incorporate a portfolio tracker where users can see at a quick glance the buy price, current price, volume, equivalent value in ethereum, and dollar, and last but not the least the percentage gain/loss. This way, day traders and hodlers alike will no longer have to navigate from one tab to another just to compare their buy price to the market price, and most importantly to check whether they are gaining or losing money.
PhoenEx is built with the end users in mind. Customer service has a defined service level agreement and standard across time zones.
PhoenEx fees are competitive and relatively low compared to other established exchanges. Using PHOENEX Token to pay for fees entails big discount. Lastly, new token listing process is agile and streamlined. Project teams do not have to wait for weeks or months to know the result of their listing application.

PHOENEX Token (PHNEX)

PhoenEx (PHNEX) is a standard ERC-20 compliant token created through Ethereum Smart Contract. The PHOENEX token is not a security token. It is classified as payment or utility tokens which will be used in the PhoenEx Exchange application as exchange fees, withdraw fees, new coin or token listing fees, advertising fees, etc.

PhoenEx Tokens will be used as currency on the PhoenEx Exchange platform along with Ethereum. PhoenEx Tokens do not represent company shares or give rights to profit sharing. As mentioned above, PhoenEx Token is utility token, therefore there is no guarantee of future value of the PhoenEx Token and will be solely up to the market and community to decide same.

Token Details

Token Name: Phoenex

Token Symbol: PHNEX

Contract Address: 0x0811803D9B6EDF3C42AD0615756669F53a240fba

Token Standard: Ethereum ERC-20

Total Supply: 500,000,000

Decimals: 8

Soft Cap: 500 ETH

Hard Cap: 1000 ETH

Unsold Tokens: To be Burned

Token Presale Period: Feb 12, 2019 – Mar 15, 2019

WHO'S BEHIND PHOENEX?

PhoenEx is led by Douie Marc Galiste, CEO and Head of Marketing. Douie Marc is seasoned entrepreneur, a full-time cryptocurrency trader, and an experienced ICO hunter. Douie Marc has has a decade of experience in leadership and has a knack for finding the best people for the job. His vision has been to build a global cryptocurrency exchange that will be at par or even surpass established exchanges in the market.

To bring PhoenEx to life, Douie Marc has assembled a team of engineers and executives, including Brookshiel Mae Galiste (COO and Marketing Advisor), Raizalyn Razo (Project Manager and Advisor), Adrian Alvarez (Community Manager and Advisor), and Aaron Malone (Advisor).