BitMEX CEO "The craze for decentralized futures exchanges could die out next year"

There are forecasts that new platforms in the decentralized futures exchange (Perp DEX) market will find it difficult to maintain long-term dominance.

On the 1st (local time), according to CoinDesk, Stephan Lutz, CEO of BitMEX, said at the Token2049 event in Singapore, "I don't expect currently prominent Perp DEXs such as Hyperliquid and Aster to still be leading the market next year," adding, "Their business models are too vulnerable."

Recently, the Perp DEX sector has seen new exchanges such as Aster (ASTER) launch and threaten the incumbent Hyperliquid (HYPE). In fact, last week Aster surpassed Hyperliquid in 24-hour trading volume. Competition has intensified further as Justin Sun, founder of Tron, revealed plans to launch a new Perp DEX.

Lutz said, "They are effectively close to a 'pump-and-dump' structure," explaining, "Not that it's a bad thing, but they attract users with incentives and trading is repeated relying on that reward structure." He pointed out, "It's a structure that draws attention with token rewards and fee rebates like an advertising campaign, but the question is what remains in the end."

He also warned that "such a structure makes long-term liquidity difficult to maintain and exposes retail investors chasing high returns to large volatility and risk."

On the other hand, Lutz said, "Large centralized exchanges like Coinbase can withstand these cycles and still maintain market dominance," and emphasized, "BitMEX plans to act as a bridge connecting traditional finance and decentralized finance."