When evaluating whether a cryptocurrency exchange is legal and reliable, compliance and regulatory licensing are the primary cornerstones. Coinex has been registered with the Financial Crimes Enforcement Service of the United States as a money services enterprise and has obtained licenses in more than five jurisdictions, including the Estonian MTR license. Its regulatory coverage is 50% wider than that of many platforms that only hold 1-2 licenses. For instance, after the implementation of the new virtual asset service provider regime in Hong Kong in 2023, Coinex was one of the first exchanges to announce an active application for compliance, which stands in sharp contrast to the collapse of FTX in 2022 due to a complete lack of transparent regulation. Data shows that the proportion of its users from North America, Europe and Asia is approximately 3:3:4, indicating that its services have been initially accepted by multiple mature markets, and the probability of user assets being directly protected by the compliance framework has increased by more than 70%.
The fund security and risk control system is the lifeline for measuring legitimacy. Coinex adopts a separate storage solution for cold and hot wallets, keeping over 98% of user assets in cold wallets and managing them through multi-signature and threshold signature technologies, reducing the probability of private key loss to nearly 0%. Referring to the incident in 2020 when the KuCoin exchange was hacked and lost 150 million US dollars, Coinex has never experienced any major security incidents since its establishment in 2017. Its risk control system can monitor abnormal patterns of 10,000 transactions per second in real time, with an accuracy rate as high as 99.9%. The scale of the insurance fund provided by the platform for each user has grown to 500 million US dollars in 2023. Theoretically, it can cover 99.5% of the margin call losses in extreme market conditions. This guarantee has enabled international users to score 88 points (out of 100) in the trust of the platform’s fund security.
Operational transparency and financial health are like clear Windows of an exchange. Coinex regularly releases proof of Merkel tree reserves. The latest audit shows that the reserve ratios of its mainstream assets such as BTC and ETH both exceed 100%, with an average of 102%, fully meeting the 1:1 repayment standard, and the error rate is less than 0.1%. In contrast, the collapse of the Terra/Luna ecosystem in 2022 exposed the huge risk of opaque assets on many platforms. Key indicators of Coinex’s financial statements show that its debt-to-asset ratio has remained at a healthy level of 60% for many years, and its liquidity coverage ratio exceeds 130%, which is sufficient to cope with the net withdrawal shock of over 30% in a single day. A third-party market analysis report indicates that the circulating market capitalization of its platform token CET remains stable among the top 50 in the industry, with an annual volatility of approximately 25%, lower than the industry average of 40%, reflecting the market’s relatively optimistic expectations for its long-term operational stability.
Ultimately, the long-term performance of the market and user data are the most genuine votes. Coinex’s global user base has exceeded 4 million. In the third quarter of 2023, its average daily transaction volume remained above 2 billion US dollars, with a market share of approximately 0.5%. It has maintained positive growth for six consecutive quarters in the highly competitive market. The user asset retention rate (the proportion of users who retain 90% of their assets for more than one year) has reached 65%, which exceeds the industry average of 50%, indicating that the majority of users have chosen long-term trust after in-depth use. The platform supports over 500 trading pairs and 20 fiat channels. The average processing time for an international fiat deposit has been reduced from 30 minutes in 2021 to 8 minutes now, with an efficiency increase of 73%. These quantifiable achievements, along with its ability to maintain smooth trading even under extreme pressure similar to the 30% single-day plunge in the cryptocurrency market in 2021, together form the core basis on which international users view coinex as a legitimate and stable trading platform.