Former Mt.Gox CEO to Launch Transparency-Focused Crypto Exchange EllipX

Coinspeaker
Former Mt.Gox CEO to Launch Transparency-Focused Crypto Exchange EllipX

With Mt.Gox repayment out of the way, Mark Karpeles, the former CEO of the beleaguered cryptocurrency exchange, has moved forward to new ventures. The 39-year-old businessman plans to debut a new crypto exchange EllipX in Poland, Europe, this September. Karpeles noted that the firm is currently working on maintaining compliance with the EU Markets in Crypto Assets (MiCA) rule.

EllipX Exchange to Uphold Transparency and Security

On Wednesday at the Korea Blockchain Week event in Seoul, Karpeles clarified that the new platform will focus on transparency and user-friendliness. This new crypto exchange is keen on helping newbies in the crypto ecosystem to adapt seamlessly.

The exchange plans to compartmentalize its different working bodies to achieve its desired transparency. The crypto entrepreneur noted that an exchange could have a broker side dealing with customers in today’s market.

It could also have a matching side and a storage side, which involves storing crypto and fiat. Rather than the regular crypto outlook, he further explained that the trading platform will have a structure similar to that of the New York Stock Exchange.

“Basically what I see for the future is to have one entity that deals with the trading on the market, and brokers located in different countries providing localized service, while the trading entity will only deal with trading,” Karpeles added.

The exchange will involve third-party clearing houses like BitGo responsible for the “movement of hands-on crypto”. Karpeles plans to serve as the Chief Technical Officer of the new exchange, handling all technical aspects of EllipX once the platform goes live.

The former Mt.Gox CEO acknowledged that large cryptocurrency exchanges like Binance and Coinbase dominate the industry.

“But as you go down the list after five, six names, you won’t even know which companies are running the exchanges,” he added.

US Investors Seek Transparency from Crypto Firms

The crypto industry is currently in a phase where investors prioritize transparency and robust security. The switch was attained after renowned crypto firm FTX suddenly crashed in 2022, causing users to lose their funds. Since this unfortunate event, crypto firms have invested more resources in communicating transparent approaches to their users.

One common practice among innovators and exchanges is publishing their Proof-of-Reserve (PoR). In the first quarter of this year, the OKX exchange published its 17th PoR since the downfall of FTX and the Terra (LUNA) fiasco. The document showed a balance of $22.2 billion in primary assets backing users’ funds.

At the time, the PoR also showed that the exchange had a record of a total BTC reserve of 102%, ETH 104%, USDT 106%, and USD 110%.

A few months later, top exchange Gate.io published its PoR report showing a reserve-deposit ratio of 115.34% and a total reserve value of $6.49 billion at the time of compilation. This act contributed significantly to allaying investors’ fear of being stranded in the case of an unexpected implosion.next

Former Mt.Gox CEO to Launch Transparency-Focused Crypto Exchange EllipX