How important is transparency in crypto

[Crypto_Potato]

These days, murky marketing and shady statistics are now the hobbies of companies. Look at the apple iPhone 16 launch event for example, they just said they have a bigger battery without any actual numbers to back it up and the same with their new A18 chip, they just said ooh 40% faster and you never really get where this comparative numbers come from or under which conditions.

We also see something similar like this in the crypto space especially with CEXs. Transparency is what a CEX needs to survive, actual numbers like an increase in trading volume, social media follower count, increase in available tokens and also presence of a security fund. Unfortunately only few exchanges are transparent with this numbers but it is what it is

[Z-tight]

Transparency is what a CEX needs to survive, actual numbers like an increase in trading volume, social media follower count, increase in available tokens and also presence of a security fund. Unfortunately only few exchanges are transparent with this numbers but it is what it is

You can see this info in most centralized exchanges. What i don't believe is security funds, or anything like safu, if you use centralized exchanges to trade only and you move funds into your self custodial wallet immediately, then you don't have to worry. Don't store your funds in any centralized exchange, not your keys; not your coins, if the exchange is hacked, you'll probably never get 100% of your money back.

[TomPluz]

We also see something similar like this in the crypto space especially with CEXs. Transparency is what a CEX needs to survive, actual numbers like an increase in trading volume, social media follower count, increase in available tokens and also presence of a security fund. Unfortunately only few exchanges are transparent with this numbers but it is what it is

I still have to see one with 100% transparency when talking with CEX platforms...and I am sure that even Binance, which I considered to be the top one, can not be categorized as utmost transparent...though I still prefer to use Binance compared to other exchanges which are a lot worse. Now, the reality is that transparency is not practiced a lot by many real-world companies as they are fighting for the market share they desire, truth seems to be not on their side. Here in the cryptocurrency world, transparency is at the last on the list of priorities and of course not just with CEXs because it is a lot so bad with projects and platforms looking for the public to "invest" on them. We can not expect transparency and even accountability to be coming to cryptocurrency industry anytime.

[Smilez]

It seems I'm not the only one still wondering what the difference is between the newly released iPhone 16. However, I feel like people need time to get used to the product.

I understand the relation, mate - a transparency report is indeed needed. I believe it increases trust between users and the particular exchanges they're using. At least, that's how I feel when I saw my exchange's report. It showcased impressive stats: gaining 1.7 million new followers last month, boasting over 185,000 pro traders, and 840,000 copy trading followers, with more than 90 million successful trades and over $500 million in gains. Results like these make me want to explore the copy trading feature. I'm keen to see more impressive results as the exchange grows and keeps users in the loop.

[Z-tight]

We can not expect transparency and even accountability to be coming to cryptocurrency industry anytime.

I believe you should be accountable for your own funds when you use crypto, store your funds in your own self custodial wallet and do not expect any kind of accountability from custodial services. When you say transparency, i don't know what you are looking for, the BTC blockchain is public and transparent, what sort of transparency are you looking for from centralized services?

[Findingnemo]

You can't know anything for sure unless they make their all wallet addresses public which again will become the invitation for the hacker that increases the chance of losing funds to some kind of attack. And I am pretty sure exchange have been faking their trading volume and whatever else that gives them good face value among the competitors but if they overdo it then it will just backfire at them for sure.

[joniboini]

It showcased impressive stats: gaining 1.7 million new followers last month, boasting over 185,000 pro traders, and 840,000 copy trading followers, with more than 90 million successful trades and over $500 million in gains. Results like these make me want to explore the copy trading feature. I'm keen to see more impressive results as the exchange grows and keeps users in the loop.

The follower and copy traders' stats are whatever but the profit number is unbelievable. You're saying that traders on that platform made over $500 million in just one month? That number is really high IMO. Not to mention that nearly all of them are made by copytraders. How do they count that? It's not a magic formula to increase your profit, most platforms offer more or less the same thing. The difference is just who you follow.

The thing about fake volume is also true. Hence why it's better to check for depth if you want to use an exchange for whatever reason. A liquidity depth is manipulated by bots when the trade history shows small trades in large quantities in a short time. CMIIW.

[Aanuoluwatofunmi]

Being transparent in what we do will bring about trust in them, but others we are also dealing with will see it that such is nothing than an evidence of truth, if we are going to maintain having the same reputation n whom we are, then we will all be running after what is called the truth, we cant afford to be under deceit or work along the culprits of those involved in dirty things like that.

[PX-Z]

It's a problem of most of company not just crypto but most of companies in the name of their products and marketing boost. It just like on exchanges slogans say "we have 5 million users so we are trusted" without giving data for it. Even some products will release a PR article showing different stat number from X sources without any actual data. Such marketing gimmick is suspicious the same way to the mentioned product.

[libert19]

Transparency is what a CEX needs to survive, actual numbers like an increase in trading volume, social media follower count, increase in available tokens and also presence of a security fund. Unfortunately only few exchanges are transparent with this numbers but it is what it is

You can see this info in most centralized exchanges.

Well, you do see the info in apparent sense but how much of it is actually legit, that's why's one may wonder about. The volume can be wash traded, social media followers count can be bought, some exchanges may say user funds are secure but they don't have way to prove it unlike Binance [1] who has their SAFU wallet address public.

[Jating]

You can't know anything for sure unless they make their all wallet addresses public which again will become the invitation for the hacker that increases the chance of losing funds to some kind of attack. And I am pretty sure exchange have been faking their trading volume and whatever else that gives them good face value among the competitors but if they overdo it then it will just backfire at them for sure.

If I'm not mistaken, Binance has disclosed it's public address and there are like: (https://platform.arkhamintelligence.com/), that you can track some of the wallets of big exchanges. However, we still don't know if they can back everything up 1:1. They just declared that their funds are SAFU, until they got hack and then there are no funds to cover for their customers. And probably this separates the top tier exchanges as "maybe", they could have the funds since they are big exchange already. As compare to second tier wherein we really don't know if they indeed have funds so it's really up to us traders which we should trust or which exchange we should get our funds out once our trade is done.

[Findingnemo]

You can't know anything for sure unless they make their all wallet addresses public which again will become the invitation for the hacker that increases the chance of losing funds to some kind of attack. And I am pretty sure exchange have been faking their trading volume and whatever else that gives them good face value among the competitors but if they overdo it then it will just backfire at them for sure.

If I'm not mistaken, Binance has disclosed it's public address and there are like: (https://platform.arkhamintelligence.com/), that you can track some of the wallets of big exchanges. However, we still don't know if they can back everything up 1:1. They just declared that their funds are SAFU, until they got hack and then there are no funds to cover for their customers. And probably this separates the top tier exchanges as "maybe", they could have the funds since they are big exchange already. As compare to second tier wherein we really don't know if they indeed have funds so it's really up to us traders which we should trust or which exchange we should get our funds out once our trade is done.

The disclosed some of the addresses to view for anyone but they will never expose all of their holding addresses to view for any one for multiple reasons so it is impossible to get the accurate data in any other way along with that they don't really send funds to their cold wallets all the time, it's like a reserve funds so they deal with mostly hot wallets and like I said we can't know anything for sure that the provided liquidation is the actual trading volume or not.

[hugeblack]

Transparency is required but without regulatory bodies it is difficult to verify the accuracy of these numbers so it is best to assume that all trading volumes mentioned are much lower than the actual volumes and that hedge funds will not benefit you if the platform is hacked.

[MrSpasybo]

The disclosed some of the addresses to view for anyone but they will never expose all of their holding addresses to view for any one for multiple reasons so it is impossible to get the accurate data in any other way along with that they don't really send funds to their cold wallets all the time, it's like a reserve funds so they deal with mostly hot wallets and like I said we can't know anything for sure that the provided liquidation is the actual trading volume or not.

There are many conspiracy theories in this market regarding fake trading volumes, but we can't do anything to get to the truth. We can only continue to trust CEXs reserve proof reports for peace of mind. I think it's only a psychological effect.

Coinbase has never published a proof of reserves, but it's still the CEX of choice for large financial institutions such as BTC Spot ETF providers. So when Binance has proof of reserves, I'll choose to trust Binance and continue using Binance to participate in the market instead of worrying too much about a black swan event from Binance like FTX or Mt.Gox collapsing.

[Stompix]

Apples (pun!) and oranges.

One is a product you can test yourself and you can return if you don't like it the other is a private company that can pretty much say and advertise anything it wants because of "much freedom".
It's quite funny how there isn't a day to add one more example of how double standards work in crypto, everyone asks for laws, for protection, and transparency but once it's the SEC trying to enforce these everyone starts screaming about the evil government.