With markets reeling from a massive liquidation that left thousands of traders with millions of dollars in losses, major Bitcoin (BTC) and crypto exchanges are taking bold strategies to regain user trust amid an “ad war.”
recent storm Decentralized competitors fly the flag of transparency while vulnerabilities of centralized platforms are exposed.
Major companies such as Binance and OKX have come under increasing criticism for their allegedly opaque practices. In this context, exchanges are trying to differentiate themselves with things like quick compensation, robustness promises, or innovative models that limit risk.
Decentralized exchange (DEX) HyperLiquid used the crisis to highlight its operating model. Co-founder and CEO Jeff Yang said that all orders, transactions, and payments on the platform are verifiable on-chain. “Anyone can audit the system’s performance and solvency in real time,” he asserted.
Yang said this transparency marks a fundamental difference from centralized exchanges (CEXs), which often underreport payment amounts. For example, Binance “combines thousands of liquidations into a single record, which can underestimate the true size by up to 100 times during periods of high volatility,” he said. Yang urged the industry to prioritize transparency and neutrality as pillars of future finance..
Meanwhile, analyst and trader Juan Rodriguez fueled the debate by accusing major companies like Binance and OKX of intentionally hiding data.
“They are the leaders in volume, but they are the least transparent,” he said. Rodriguez warned that This opacity protects the platform from fraud investigations. He urged users to migrate to a more open service.
He also warned about influencers who could benefit from referral systems to minimize these interaction failures. “Move capital to transparent services,” he recommended.
Crisis response
Meanwhile, as reported by CriptoNoticias, Binance faced operational winds on October 10th, causing the system to collapse due to an extremely high volume of trades.
el exchangeAnd warned about withdrawal delays, balance discrepancies and problems accessing the app Use the web during critical times. The company attributed the failure to overload caused by the market crash.
One of the crypto assets most affected by the turmoil was Ethena’s stablecoin USDe, which lost parity with the dollar and was trading close to $0.65 on Binance. Although the decline was temporary, the episode alarmed the community and reminded us of past instances of algorithmic stablecoin collapses.
However, Binance acted quickly and announced compensation to affected users within 24 hours. The company stressed that it accepts full responsibility and will compensate for all losses, including those before its “exit” from the market.
Meanwhile, Binance-linked BNB Chain announced a $45 million airdrop on October 13th. Under the name ‘Reload Airdrop’, the program will distribute BNB to over 160,000 addresses operating memecoins, one of the sectors hardest hit by recent volatility.
This initiative not only aims to reduce the impact on the community, but also serves as an important marketing resource for Binance. Strengthen the ecosystem and attract retail traders at a time when trust is under scrutiny.
In contrast, Crypto.com claims to position itself as a bastion of stability. CEO Chris Marszalek asserted that the company’s platform has withstood the spike in traffic and clearing records without issue.
“We have built a robust and resilient platform,” he said. Mr. Marszalek went further and called on regulators to investigate the practices of exchanges with high-end liquidations.
He asked a pointed question: Did they paralyze operations? Did they quote correctly? Do they have an effective anti-money laundering program? Will they protect their negotiating teams? With a settlement of $20 billion, The businessman emphasized the need to protect consumers and ensure the integrity of the market..
Alternative models become popular
Amidst the controversy, the Kraken exchange took the opportunity to promote its Breakoutprop model. This program allows traders to After passing the test, operate in platform funds and keep profits without losses..
“What if your losses are limited but your gains are limited?” says Kraken’s message as it seeks to attract users disillusioned with the risks of other exchanges.
Breakoutprop provides an avenue for experienced traders to trade with institutional investors. Kraken assumes the financial risk in case of loss.
Trust and market evolution
Daniel Arees, an economist specializing in Bitcoin and cryptocurrencies, told CriptoNoticias: Confidence in the crypto market does not depend on a single factor. He emphasized the importance of trading volume and execution engine speed (matching engine), match orders between buyers and sellers and reduce slippage (slippery) according to price movements.
If any of these fail, they are very likely to try to invest their funds elsewhere. Also, the possibility to arbitrage and manage volumes on different exchanges will play a more fundamental role if there is no same price on a single platform.
Daniel Arees, an economist specializing in Bitcoin and cryptocurrencies.
Araez analyzed it as follows. Recovery after Friday’s selloff doesn’t just reflect leverage and manipulation. “The point of this news is not that it was an issue of leverage or market manipulation. Beyond the Bitcoin ETFs that are concentrated in Coinbase, the way Binance is concentrating the largest amount of cryptocurrency operations is a reminder that there is always an element of trying to attract new investor profiles,” he explains.
Next, he distinguished between two types of investors. One is traditional investors looking for protection and stable returns, and the other is new investors who see cryptocurrencies as “casinos” with high risk and profit potential. “Exchanges are going to continue to be businesses. They’re going to win, they’re not going to lose. What they’re going to offer is an incentive to attract and manage different types of clients and users.”
The recent liquidation crisis has focused attention on the direction of virtual currency exchanges. Users have become more aware of platform vulnerabilities and practices and can demand greater transparency and accountability. The sector faces a unique opportunity to redefine standards, prioritizing systems that balance innovation, security, and trust.
