DX Exchange CEO Rebukes Criticism on Launch Delay, Doesn’t Name a Date

This is an excerpt. To hear the full interview, please click the Soundcloud or Youtube links.

As the cryptocurrency industry continues to merge with more traditional financial institutions and larger investors, new platforms are needed to fulfill their trading and security needs.

Whoa! London Summit’s new site is LIVE

Finance Magnates recently spoke with Daniel Skowronski, Co-Founder and CEO of DX Exchange about what the crypto industry needs in order to support institutional investors, and the things that DX is doing to invite more institutional investors into the space.

Daniel will be speaking in a panel about different trading models at the upcoming Finance Magnates London Summit. The summit is a major crypto and FX event in London on November 14th, at the Old Billingsgate. We work hard on making it the best and we would love to see you there.

Combating Fake Volume

“There’s something like over 1000 exchanges around the globe, a majority of which are no-regulation and a handful of which are trying to get properly licensed, or there’s a few that are following some sort of rules.”

“There are exchanges out there that clearly make markets themselves,” Daniel explained. “Under our regulations, we are not allowed to be a market maker on the exchange.”

“A lot of exchanges add market makers who basically are just there to pump up volume doing buys and sells and cross trades. There’s a lot of exchanges out there that allow these trading bots, which basically just do the same thing.”

#China and @Microsoft continue to show strong faith in #blockchain, even as #cryptocurrency values struggle. pic.twitter.com/OljpAznNnV

— DX.Exchange (@DXdotExchange) August 15, 2018

Daniel explained that DX Exchange has two methods for eliminating market makers that produce false volume. “We’re using a surveillance system which basically looks at the exchange and all the activity,” he said. “It can follow whether or not there’s a pump-and-dump happening on some particular pair, or if there’s some strange volume that’s going through, or if the pricing seems to be off, and it can alert us immediately so that we can manage it and take a look at what’s going on.”

“The other aspect is that we require every token or cryptocurrency that comes to our exchange to have a market maker,” he explained. This doesn’t mean that they “can just buy some bot and allow it to market-make”, or “just come and throw their token up there and let it trade. They actually have to have a real market maker.”

“That market maker must also be approved by us,” he continued. “So we already have a number of market makers that are pre-approved, and we can introduce [token creators] to them.” The token creators can then make a separate deal with the market-makers to manage their token liquidity and market price.

“We really want to eliminate the whole space around fake volumes,” Daniel said. “This is how you get the institutional money, and this is how you get wire adoption from the people who are standing on the sideline who are kinda getting fatigued with all this un-regulation, and all these exchanges that are bouncing around from jurisdiction to jurisdiction.”

We are happy to announce that https://t.co/gavrewTi9F will launch trading pairs including not only EUR and USD, but also GBP and JPY. #exchangeyourway

— DX.Exchange (@DXdotExchange) August 9, 2018

An Official Launch Date Has Not Been Set, But Daniel is Hopeful

“We had a story break in May about our launch,” he said. “It was a bit unexpected, which turned out to be a good thing and a bad thing. It was a bit early, so that was the bad side. The good thing was that it brought a lot of awareness to us.”

“We worked really hard to open up a registration process, so [yes]–in June, that opened up. Between late May and June and into early July, we had over 500,000 people come and register from around the globe. It’s closer now to 600,000 that are out there.”

Daniel added that a full KYC registration was added to DX Exchange on July 2nd: “we’re processing thousands of users every day.”

“People can come, understand who we are, get their accounts open, and get ready so that when we do launch on day one, all they have to do is fund with either fiat or crypto.”

There’s still no specific date set for the launch of live trading on DX Exchange. “We’re doing everything we can to get it launched in Q3. We’re looking at everything from security to more enhancements.”

Cryptocurrency on Capitol Hill: Is US Government acceptance of cryptocurrency growing? #exchangeyourway pic.twitter.com/DTlGUKQqxc

— DX.Exchange (@DXdotExchange) August 10, 2018

“We decided we want to have more tokens launched on the exchange,” he added. “We were originally only going to launch with six. This number could be now as many as, say, 11 to 20 or 25.”

Additionally, “we were doing a private sale on our taken, and we had so much strong investor interest that we were in the fortunate position to start picking and choosing. Not just because someone wanted to invest a certain amount,” he said, “but more what kind or partnership that they could provide later down the road, or whether it’s helping us helping us build a community in a certain control, or [helping us] from a technology standpoint or from a VC standpoint, we continue to grow.”

”We Have the Right Regulation”

“People who have been beta testing, or who have seen the videos, or who have gotten sneak peaks of the platform just find it incredible compared to what’s out there today. I think our community is growing, and what you see in our Telegram group is certainly not reflective of our total community because we have several different channels.”

“As far as the competition that’s out there, I believe we’re doing things very differently,” Daniel said, confidently. We’re partnering with the right people, we have the right regulation, and we have amazing technology.”