As a digital-centric industry, crypto is always changing. There are countless projects, firms, and digital assets flowing in and out of this budding space.
Often, few pay attention to the newcomers. 2017’s “Cambrian explosion” of cryptocurrencies, most of which never pushed a proper product to market, has resulted in many disregarding new entrants into the cryptosphere.
But one new platform is catching the eyes of traders: DMEX, which bills itself as a “decentralized mercantile exchange.” No, it’s not just another average decentralized exchange, it’s a decentralized mercantile exchange. What’s more, it’s waging war against BitMEX, one of the most liquid Bitcoin markets on Earth. That’s what their marketing material suggests anyway.
But can they really succeed? And, of course, what makes them different than BitMEX?
Dmex is Decentralized BitMEX
To put it short and sweet, DMEX is effectively a decentralized, more sleek version of the BitMEX that Bitcoin traders have grown to love, offering high leverage cryptocurrency trading options.
While this doesn’t scream innovative, it provides countless benefits to its users that BitMEX cannot. Here’s a list:
DMEX, because it’s decentralized, cannot be hacked directly. Sure, users’ private keys can be swiped through alternative means, but there is no exchange reserve worth millions (like in the cases of Bithumb, Binance, CoinCheck, Mt. Gox, etc.) to be hacked.
DMEX claims to be open source, giving developers the opportunity to audit the exchange to try and weed out any issues in the trading engine. This deters hackers and manipulators.
DMEX can’t lock the accounts of people it is suspicious of. This is different than traditional exchanges. BitMEX, for instance, was lambasted by Tone Vays after he was banned from the platform for trading from a U.S. IP address.
DMEX processes withdrawals immediately, as it is decentralized after all. This rapid access to funds is different than the once-a-day system BitMEX and other popular exchanges employ to avoid regulatory risk.
The exchange’s long-term goal is to usurp BitMEX, which the site claims is manipulating the market to liquidate their traders. While this is unlikely to happen in the short term, DMEX’s wide array of benefits over traditional margin-enabled exchanges should allow it to snag market share — and thus liquidity — from the cryptocurrency crowd in the coming years.
Swath of Crypto Assets Supported
Another thing interesting about DMEX is that it supports a massive swath of crypto assets, which many traditional platforms find hard to do. According to Ethereum World News’s latest scan of their webpage, they support a massive list of cryptocurrencies.
Bitcoin, Ethereum, Litecoin, XRP, Binance Coin, Bitcoin Cash, EOS, Tron, Cardano, Stellar Lumens, Monero, Chainlink, Ethereum Classic, NEO, Ontology, Basic Attention Token, Nano, Cosmo’s Atom, and IOTA are all the cryptocurrencies currently supported by the platform. Have no doubt that DMEX is looking to expand its already expansive roster of cryptocurrencies in the future.
It is important to note that the margin options differ from crypto asset to crypto asset. Yet, even smaller yet popular digital assets — like NEO and Nano — sport 10x margin support, giving users of DMEX a chance to dramatically amplify their potential profits.
With the addition of industry favorites like Chainlink, Nano, and Binance Coin — which platforms like BitMEX and Deribet have yet to add support for — the appeal of trading on DMEX is likely only growing.
To clarify, DMEX provides support for all these cryptocurrencies in a decentralized manner by utilizing synthetic products based on Ethereum, which use oracles that listen to price feeds. So, in reality, you aren’t margin trading Bitcoin or EOS, for instance, directly. But, this isn’t much different than the contracts that exist on BitMEX.
Too Long; Didn’t Read Summary
If you skimmed over the article and are looking for the appeal of DMEX in a summary, here it is:
DMEX is an open-source margin-enabled crypto trading platform looking to unseat BitMEX as the king of margin trading. It offers high-leverage products (from 10x to 100x) on a vast roster of cryptocurrencies, including everything from Bitcoin and Ethereum to Binance Coin and Chainlink. Due to its decentralized nature, it can mitigate the risk of a hack, manipulation, and the disclosure of client data.