Cryptocurrency has become a popular investment and trading option, with centralized crypto exchanges (CEXs) emerging as the go-to platform for individuals and institutions to buy, sell, and trade cryptocurrencies. These exchanges act as intermediaries, matching orders and facilitating transactions, but they are centrally controlled and maintained by a central authority or organization. 

In this paper, we will explore the value proposition of CEXs, including their convenience, liquidity, and support, as well as the risks associated with using these platforms. We will also discuss the emergence of exchange tokens and their potential impact on the industry. Initially, they were developed by crypto exchanges to raise funds from users and provide a more appealing "community ownership" model for investors. 

The most significant event impacting exchanges last year was without a doubt the collapse of FTX. This event has led to concerns about the safety of the industry and has dramatically influenced exchange outflows, volumes, and liquidity on almost all centralized exchanges (What Happened To Crypto Giant FTX? A Detailed Summary Of What We Actually Know So Far 2022).

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