Growth Metrics For Transparency of Crypto Exchanges

[R1dwanRz]

It's true that transparency is absolutely essential in this crypto space, let it be CEX or DEX, everything should be shown as in reports to you few times once a year. The data from the report is important. Since it helps you and me as a user, to decide which exchanges to trust with my hard-earned crypto.

Many exchanges are leading the charge in transparency. Some report dives into user base growth, trading volume and security measures. This detailed breakdown helps users understand how the exchanges operates and how their funds are safeguarded. You can have a look at this: https://cointelegraph.com/news/bitget-exchange-volume-tops-1-6-trillion-q1.

I believe providing this kind of transparency will help building lasting trust between platforms and their users. If we're going to invest our assets in exchanges, we need that confidence that our funds are being properly managed and protected. Regular reporting offers that level of reassurance as I mentioned earlier.

So what do you think? Are CEXs doing enough to be transparent, or is there more they can do?

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[Darker45]

Is this transparency enough for you? To me, this doesn't amount to much. Is there even a way for ordinary users of the platform to verify the data and claims of the report?

In general, when it comes to transparency, exchanges are always found wanting. If you rely on the information these exchanges release to decide which among them to use, you might end up a victim of marketing.

It's very common among exchanges to bloat their number of users, volume, and whatnot. It's very common for them to lie about their reserve, about how funds are safu, about how users' funds aren't affected whenever there's a hack, about how solid their security is, about how they value and protect their users' privacy, and so forth. Transparency is actually not their strength.

[Bournesparks]

Is this transparency enough for you? To me, this doesn't amount to much. Is there even a way for ordinary users of the platform to verify the data and claims of the report?

In general, when it comes to transparency, exchanges are always found wanting. If you rely on the information these exchanges release to decide which among them to use, you might end up a victim of marketing.

It's very common among exchanges to bloat their number of users, volume, and whatnot. It's very common for them to lie about their reserve, about how funds are safu, about how users' funds aren't affected whenever there's a hack, about how solid their security is, about how they value and protect their users' privacy, and so forth. Transparency is actually not their strength.

Yeah I think you can, it's public data.. While you have a point, don't you think the exchanges that make the effort to release their PoR (Proof of Reserves), protection funds, and transparency reports monthly or quarterly are doing something right and worth commending? On the other hand, I'm also glad that we're starting to see some level of accountability from cex and I'd like this practice to continue. The reports on CoinTelegraph were detailed & thumbs up to the platform for stepping up

[Solosanz]

If we're only talk about "trading volumes" there's an exchange that better than Binance.

Will people choose Bitcoiva over Binance? nope. In centralization... everything is based on trust, nothing more.

Is this transparency enough for you? To me, this doesn't amount to much. Is there even a way for ordinary users of the platform to verify the data and claims of the report?

Yep, the only way to know if the data and claims are real if they can sign a message from every addresses they own. There might be few hundred addresses they own, but I'm sure they won't going to do that.

To be honest financial report is useless because you can legally manipulate the data, all you need is to find the loopholes and create your own assumptions, you will able to make the report become attractive for investors.

[Darker45]

Is this transparency enough for you? To me, this doesn't amount to much. Is there even a way for ordinary users of the platform to verify the data and claims of the report?

In general, when it comes to transparency, exchanges are always found wanting. If you rely on the information these exchanges release to decide which among them to use, you might end up a victim of marketing.

It's very common among exchanges to bloat their number of users, volume, and whatnot. It's very common for them to lie about their reserve, about how funds are safu, about how users' funds aren't affected whenever there's a hack, about how solid their security is, about how they value and protect their users' privacy, and so forth. Transparency is actually not their strength.

Yeah I think you can, it's public data.. While you have a point, don't you think the exchanges that make the effort to release their PoR (Proof of Reserves), protection funds, and transparency reports monthly or quarterly are doing something right and worth commending? On the other hand, I'm also glad that we're starting to see some level of accountability from cex and I'd like this practice to continue. The reports on CoinTelegraph were detailed & thumbs up to the platform for stepping up

Which is public data? Other than those that are intentionally released by exchanges, what else is available? I'm afraid there's none anymore. Are these "your funds are SAFU" or "no customer funds are affected" or "we use leading security technologies to protect our platform" kind of statements verifiable and worth trusting? I don't think so. Do you trust these proof of reserves released by exchanges? Do you think an exchange would release something that's true but might be detrimental to their reputation? I don't think so.

Is there any way we could know the true status of an exchange? None. We should have learned lessons already. The collapse of large and reputable exchanges, those that are deemed too big to fall, happened without the public expecting and in the midst of assurances and guarantees of excellent health.

[hugeblack]

Do you expect these services to tell customers, “Your money is at risk or your deposits are being misused?” They will certainly not continue to lie, even if things are going well. Therefore, companies looking for transparency hire reliable third-party services that review all their reports, but they will not do that with these services. Misuses clients' money in an attempt to grow quickly.

[joniboini]

On the other hand, I'm also glad that we're starting to see some level of accountability from cex and I'd like this practice to continue. The reports on CoinTelegraph were detailed & thumbs up to the platform for stepping up

What do you mean by accountability? The proof of reserves mentioned above? Personally, I might change my mind if an exchange got hacked and managed to recover all funds without any trouble, but that's it. I'd never trust them with my personal data and stuff like that. Even if they have great insurance policies, and they are as transparent as we want them to be, it is always a bad idea to trust a centralized business because of that. What might change is my leeway for them to make mistakes, but I'll never change my believe that exchange platform is just a place to trade, no more no less.