Singapore – When Token2049 was reconvene next year, the decentralized exchanges of today, the CEO of Bitmex, Stephan Lutz, told Coindeesk in an interview, warns that his heavy commercial incentive models are too fragile to last.
Recently, a competitive battle has exploded in the perpetual sector of decentralized exchange (PERP DEX), with emerging platforms such as Aster and Lightter that significantly challenge the previous domain of the hyperliquid.
Last week, Aster beat Hyperliquid in terms of 24 -hour negotiation volume. This has caused a race among competitors to launch new dexs, with the aim of capturing the market share in this expanding field.
In this context, Justin Sun announced the launch of a new DEX at the Token2049 conference in Singapore, pointing out greater intensification in this rapidly evolving landscape.
However, it is likely that the emotion is short -lived, according to Lutz, who called Dexs as inherent pump and diver schemes.
“The DEX are about giving access to markets without intermediaries, and generate impulse by depending largely on incentives, it is basically an inherent pump and -dump scheme,” Lutz said. “I do not mean that in a bad way or as a scam. Everything is public, you know what you are getting in.”
He compared the incentive programs with an advertising bombardment that pays attention, explaining that these platforms hook users with tokens rewards and tariff reimbursements and then depend on that cycle of comments to keep the trade of people.
“The question is, what do you stick?” He continued.
This Boom -bust cadence not only makes it difficult to retain long -term liquidity, he added, it also means that retail merchants pursued by huge yields are exposed to considerable volatility and risk.
Unlike the rotation he sees in Defi, Lutz said that the largest centralized exchanges, led by Coinbase and his companions, are well positioned to mount these cycles and remain dominant long after the last incentives of Dex.
He added that Bitmex’s goal is horcated on both worlds, noting that, although he sees durable defi and hugs him personally as a native of cryptography, institutions cannot interact with him as they can with a centralized exchange.
Bitmex tokyo pivot
The Japanese capital, no Hong Kong or Singapore, is where the commercial volume is, according to Lutz.
In August, the exchange officially transferred its data infrastructure to Aws Toks of Aws Dublin in a movement destined to increase liquidity. The switch has delivered the desired results, underlining Japan’s appeal.
“We were in Ireland before … but it became increasingly difficult because basically all, except US players, are in Tokyo data centers,” he said.
He said that the change increased liquidity by approximately 80% in the main Bitmex contracts and up to 400% in some Altcoins markets, the profits attributed not to market intervention but to reduce latency by being in Tokyo.
Looking towards the next cryptographic cycle
Lutz predicts that the next cryptographic cycle will be remarkably different from the previous AUGES and busts.
With greater institutional participation, he said, BTC could behave more as a “real asset”, softening the picos and dramatic channels that have defined past careers.
“I hope that with greater adoption we will see longer plateau phases than in previous cycles; the market will continue to follow the same rules and characteristics, but with a lower volatility as it becomes a real asset adopted by the rich of the world,” he said.
Bitcoin market volatility has decreased significantly since Spot ETFS debut in the United States last year. In addition, implicit volatility indices of BTC have constantly evolved in structures similar to VIX, moving in the opposite direction of spot prices.
All this means that although some of these new dexs, which offer leverage of light, which Lutz believes that it will not last until next year, there are no artificial fires for BTC. Instead, it will look like any other kind of sophisticated assets with gradual ups and downs as the market cycle continues.
