The blockchain space was founded on the principles of transparency and fairness, but evidently not all players adhere to such tenets. For all users, transparency should be top of mind when deciding on a crypto exchange.
Crypto Platform Transparency
In theory, the blockchain is highly transparent because all transactions are recorded on the digital public ledger. However, crypto exchanges still have the responsibility to provide the right tools for users to conveniently verify their own account and asset information.
The Most Transparent Crypto Exchange
Amongst CEXes, Phemex must be considered one of if not the most transparent cryptocurrency trading platform. With Phemex self-proving Proof-of-Reserve mechanism, all users can verify their assets by themselves. The exchange is one of the earliest to receive certification from both Coingecko and CoinMarketCap on the legitimacy of its reserve data. Additionally, Phemex is one of few that have released proof-of-solvency by making a portion of its cold wallet addresses public. Any individual with an internet connection can review Phemex’s assets, liabilities, and solvency independently.
Besides, Phemex clearly differentiates customer funds from the exchange’s own funds so there’s no room for financial manipulation. Outsiders can enjoy a transparent view over Phemex’s liquidity and asset security.
In terms of transparent communication, Phemex always keeps users updated of the latest platform news because it believes that users have the right to know what’s going on, regardless of whether the update is positive or negative.
Furthermore, crypto exchange transparency is made through user activity tracking and reporting. On Phemex, every single transaction is promptly recorded and part of the user’s trading history. Users can also download separate reports to track their trading actions. Trading parameters for every trading pair, as well as the maker and taker fees, are readily accessible. Any changes are communicated with a haste time period.
By promoting user asset transparency alongside clear communication and user activity reporting, Phemex is fast becoming the most transparent crypto platform in the CEX space.