Yesterday, CCData unveiled its latest Exchange Benchmark report, the industry standard for assessing the risk associated with digital asset exchanges. Launched in 2019, the report encompasses dedicated methodologies to evaluate all major digital asset trading venues, covering over 150 spot, derivatives, and decentralized exchanges.
Given past concerns surrounding trading volumes and increased regulatory stringency following the collapse of FTX, identifying reliable trading platforms is now more important than ever.
CCData’s latest report highlights the improved standards seen across the industry, with several centralised exchanges improving their grades in the Exchange Benchmark. Seven exchanges achieved AA status, which was previously only held by Bitstamp, reflecting the positive changes and improved operational processes adopted by exchanges, reducing risk for investors.
Despite the improving quality of centralized exchanges, examining 1% market depth for BTC across these platforms shows liquidity has been slowly downtrending since the start of the year.
Security aspects of centralized exchanges also remains a concern, as hackers look to exploit exchanges that employ weak security measures. In 2023, users lost about $117 million in funds due to centralized exchange hacks.
DEXs are also not immune to security breaches, the report found that 44% of them had been hacked before. In the last 12 months, 8 DEXs suffered from attacks and more than $1,000,000 was lost by 17 of the 22 hacked DEXs.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.cryptocompare.com/email-updates/daily/2023/nov/02/
