On February 12, Zhao Changpeng (CZ) shared his perspective during an AMA session, stating that CEX and DEX will coexist over the long term, as they serve distinct user groups and use cases.
CZ explained that DEX platforms primarily target technically experienced users, who must manage their own wallets and maintain secure devices. Users are required to keep their computing environments “clean” to avoid malware and phishing attacks; once a private key is compromised, the risk of asset loss becomes extremely high. In contrast, CEX platforms provide account systems and customer support, making them more accessible for mainstream users entering the crypto market.
He further noted that global crypto adoption remains relatively low. Although approximately 8%–10% of the global population holds crypto assets, the proportion of personal wealth allocated to crypto remains limited. The share of users deeply engaged in the crypto ecosystem is likely below 1%, meaning most newcomers still begin through centralized platforms before potentially transitioning to DEX as their experience grows.
From CZ’s perspective, CEX and DEX are not direct competitors in the traditional sense. The market is sufficiently large for both models to grow simultaneously while addressing different layers of user demand. As the user base expands and infrastructure matures, trading models are expected to become increasingly diversified.
Risk Monitoring and Compliance Context
As user structures become more complex, the industry’s need for fund flow monitoring and risk detection continues to increase. Some platforms are deploying on-chain risk monitoring solutions, such as Trustformer KYT, to identify abnormal transaction behaviors and reduce security risks across different trading models.
Against the backdrop of evolving trading ecosystems, KYT-based monitoring tools are increasingly recognized as essential infrastructure for maintaining platform stability, strengthening compliance, and enhancing overall user protection.