BitMEX CEO Stephan Lutz has expressed skepticism about the sustainability of the current craze for incentive-driven perpetual decentralized exchanges (DEXs). In an interview, Lutz highlighted that platforms like Aster and Hyperliquid, which rely heavily on token rewards and fee rebates to attract users, may not maintain their momentum into the next year. He described these models as akin to "inherent pump-and-dump schemes," which pose risks to retail traders and struggle to retain liquidity over time.
Lutz argued that large centralized exchanges (CEXs) such as Coinbase are better equipped to endure market fluctuations and maintain their market position. BitMEX, he noted, aims to balance the benefits of both centralized and decentralized models. The perpetual DEX sector has seen intense competition recently, with Aster surpassing Hyperliquid in 24-hour trading volume.
BitMEX CEO Warns of Unsustainable Incentive Models in Perpetual DEXs
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