ChainCatcher Space Review: DEX vs On-chain Wallets, Where Are P's Assets Flowing? How to Achieve "Mass Adoption" or Become the Biggest Challenge in the Industry?

Recently, OKX announced the suspension of its DEX trading business, which has attracted widespread attention in the market. With the development of decentralized exchanges (DEX) and on-chain wallets, the flow of user funds is experiencing new changes. Does OKX's decision signify an adjustment in the industry landscape? Can DEX still maintain its competitiveness? In the face of market uncertainties, how can we promote Mass Adoption, lower user thresholds, and allow more people to enter the on-chain ecosystem?

Last week, ChainCatcher's "Wallet & DEX Survival Guide" series invited Bitget Wallet CEO Karry, GMGN co-founder Haze, and David from Jin Gou Mining Machine to discuss the theme "DEX vs On-chain Wallets: Where are P's assets flowing?" They explored the flow changes and gold mining opportunities in the decentralized exchange (Dex) and on-chain wallet market.

For more details, please refer to X:

https://x.com/i/spaces/1gqxvjPdlMRxB

Below is a summary of the Chinese content.

1. Host Ray: Behind the suspension of OKX DEX trading is the flow change and gold mining opportunities in the decentralized exchange (Dex) market, with the entire market focusing on who will become the flow bearer in this change. Why is the impact of this event so significant?

Karry: The suspension of trading by OKX mainly stems from its decision to bind centralized and decentralized businesses within the same APP. OKX initially achieved cold start and traffic dividends by integrating wallet and exchange functions, leveraging a large user base, but this approach also buried hidden dangers. The KYC information and regulatory requirements of the centralized part fundamentally conflict with the anonymity and self-custody concepts of decentralization, leading to vulnerabilities in security and responsibility allocation, and making service interruptions likely under compliance pressure. In contrast, Bitget Wallet chose to operate the APP independently and strictly distinguish between centralized and decentralized operations to avoid such entanglements.

Haze: From a regulatory perspective, although OKX's event was unexpected, it actually sounded the alarm for decentralized platforms. Many people originally thought that decentralized products could enjoy the benefits of relaxed regulation, but in reality, when decentralized products are bundled with centralized entities, they are still subject to strict regulatory impacts. The involvement of compliance issues forces regulators to pay attention to such products, which may lead to more follow-up cases. Therefore, from the perspective of product form and regulatory requirements, it is particularly important to separate the two and operate independently; otherwise, it will inevitably lead to a series of compliance disputes and operational risks.

David: From the user's perspective, the aggregator of OKX DEX previously provided users with a fast and smooth trading experience, especially when used on the BSC chain, where transaction speeds were significantly better than other tools. However, with the strengthening of regulatory issues and KYC requirements, this advantage has gradually diminished, resulting in users facing more restrictions and inconveniences during transactions. Now, we have to look for new platforms to provide similar services, ensuring that the trading experience is not affected by regulatory risk control measures, thus guaranteeing that operations can still be completed quickly and safely in high-frequency trading scenarios.

2. Host Ray: After the suspension of OKX DEX, the market competition landscape has changed. How can products like Bitget Wallet and GMGN seize this opportunity?

Karry:

Bitget Wallet insists on independent operation, with Mass Adoption as its vision, providing comprehensive cryptocurrency services. We not only focus on trading functions but also invest heavily in PayFi services, creating a wallet that combines trading and consumption experiences. As early as three years ago, we launched features related to directly paying Gas with trading tokens and reduced user thresholds through innovative methods like merging authorizations. In the future, we will continue to improve product quality and data accuracy while accelerating the development of trading products.

Haze: OKX DEX mainly attracted users who are sensitive to transaction fees and have lower requirements for trading speed, while our target users are more focused on ultra-fast trading and early chip capturing. Therefore, we always focus on optimizing the on-chain trading experience and data accuracy rather than adjusting market strategies. Only with an excellent product can we stand firm in competition.

3. Host Ray: With the current intense competition among various wallets, DEX, and other tool products, how should we choose a safe and reliable alternative trading platform from the perspective of on-chain users?

David:

High-frequency trading users mainly focus on trading speed and anti-squeeze mechanisms. For example, when buying new coins, we prioritize platforms that support Bot trading or web-based trading, such as GMGN, to ensure fast order response and avoid being squeezed. Additionally, for trading scenarios sensitive to fees, we also consider other wallet aggregation tools. The choice of trading platform depends on the speed of buying and the cost of selling.

4. Host Ray: GMGN Wallet has seen good user growth in the past, and data statistics show that its market share performance is impressive. What innovations or adjustments can we expect from GMGN in terms of product, especially regarding BSC chain data and overall functionality in the future?

Haze:

Regarding product innovation, we will focus on addressing data and experience issues on the BSC chain. GMGN initially focused on Ethereum and later increased investment in Solana, making the Solana experience more complete. However, in the EVM and BSC ecosystems, due to insufficient early investment, support has been limited. As BSC demand grows, we are optimizing related data. Additionally, we plan to launch a full-chain search function to make it easier for users to retrieve early trading data and improve data analysis capabilities.

5. Host Ray: Recently, a large number of memecoin projects have emerged on BSC. How should traders avoid risks?

Karry: There are many high-risk projects in the BSC ecosystem, such as "Pi Xiu Pan" with selling restrictions and tokens with high trading taxes, which often bypass conventional contract detection tools. To address this, Bitget Wallet has strengthened its contract security detection capabilities, enhancing detection accuracy with AI models. In addition, we have launched a "Hot Picks" list that selects five relatively early tokens daily, combining algorithms and manual reviews to help users reduce investment risks.

Haze: The EVM ecosystem has many tricks, and we at GMGN provide various risk avoidance tools, such as blue-chip indices, Top 10 chip analysis, security detection, and developer historical record analysis. For example, if a developer has created new projects multiple times and changed names more than ten times, we will mark them as high risk. Additionally, we offer address monitoring functions, allowing users to track smart money addresses and make investment decisions based on market trends.

6. Host Ray: Currently, products on various platforms are constantly iterating, which helps to better mitigate potential risks and provide users with various tools and tips to help them capture alpha opportunities. What specific tools can help users make better profits?

Jin Gou Mining Machine 0xDavid:
In the trading process, I divide the trading of coins into early, mid, and late stages. The key in the early stage is to discover alpha opportunities, such as finding upcoming projects through chain scanning or tracking market hotspots. The speed of scanning tools is crucial; for instance, there are few scanning panels on BSC, and while GMGN's panel speed is decent, there is still room for optimization compared to some channels. Often, a few seconds' difference can determine the success or failure of a trade. In the mid to late stages, we can combine AI or big data analysis to track the flow of funds from key addresses and assess the growth potential of coins. I hope to have better tools in the future to help users identify these mid to late-stage opportunities.

Karry:
Early opportunities are indeed difficult to grasp, with high risks but high returns, so discipline and cognitive level are crucial. For mobile trading, we provide three tools: First, Hot Picks, which recommends about five relatively early tokens daily; second, Meme X, which focuses on key signal changes on-chain, with signals based on concentrated buying by smart money in a short time or a sudden increase in the number of block addresses; third, for mid to late trading, we provide on-chain perpetual contract liquidity, allowing users to conduct leveraged trading or short selling directly within the wallet.

Haze:
Regarding chain scanning, users have high demands for speed, accuracy, and black-and-white lists, which is a key area we continuously optimize. At the same time, we are developing smarter features, such as identifying chip health and improving project transparency. On Solana, experienced players can quickly analyze a project's address composition through GMGN and even assess its potential through images. We hope to achieve the same efficiency on new chains. GMGN's core pursuit is speed, security, and stability, just like some fund companies that lay fiber directly connected to exchanges to seize trading opportunities; we are also continuously optimizing scanning speed to meet the needs of professional traders.

7. Host Ray: In the next 1-2 years, the market may face fluctuations. What external challenges will our products encounter during this process? What are the coping strategies?

Karry: For us, the biggest challenge has always been Mass Adoption. How to lower the threshold and allow more real users to enter the industry is a question we have been pondering. Currently, the usage threshold of wallets is still too high, and the industry lacks better application scenarios. We need to simplify the entire process to attract more people.

Haze: For us, the most important thing is to maintain curiosity, avoid prejudice, and personally experience new things on-chain. At the same time, the core idea is simple—provide what users need.

Jin Gou Mining Machine 0xDavid: From a personal perspective, what we need to do is clear: find profitable opportunities in the market and enter, judge, and execute at the first moment. The core lies in two points: First, have an extreme sensitivity to trends, able to identify and firmly hold them early; second, seek the fastest and strongest tools in the market and make good use of them.