In the fast-paced world of memecoin trading, every second counts — and relying on a centralized exchange (CEX) can mean losing out on significant gains. A prime example is the launch of $TRUMP on January 17, 2025. Just ahead of his inauguration, Donald Trump introduced his memecoin on the Solana blockchain, causing it to skyrocket to a peak market cap of over $14.5 billion within just 24 hours on decentralized exchanges (DEXs) such as Raydium and Orca. At one point, it became the second-largest memecoin, trailing only behind Dogecoin.
However, by the time major CEXs finally listed $TRUMP a day or two later — after navigating the typical bureaucratic delays — the trading frenzy had already subsided. For traders looking to capitalize on new opportunities, DEXs not only offer faster transactions but also greater liquidity and volatility, making the trading experience more exhilarating. In a market where fortunes can be made or lost in mere minutes, waiting for CEXs to catch up can be a missed opportunity.
The Voice of Experience: Insights from Bobby Ong
On the Monday following the $TRUMP memecoin explosion, I had the chance to speak with Bobby Ong, co-founder of CoinGecko, a well-respected crypto data aggregator that attracts around 40 million visitors each month. CoinGecko, founded in 2014, has become a go-to resource for tracking token prices and analyzing market trends.
Our conversation had been planned prior to the memecoin launch, and it was sheer coincidence that we were discussing its impact just days after its debut. Bobby and I shared a moment of disbelief, pondering the rapid rise and fall of $TRUMP. As we prepared for the upcoming Consensus Hong Kong event, we had initially intended to discuss trends in crypto adoption across Asia, but the topic quickly shifted to the shortcomings of CEXs.
The Allure of DEXs
For users of CEXs, the dawn of that Monday brought a harsh realization: they had missed out on nearly 41,000% potential gains. This was particularly painful, given that $TRUMP was not just another obscure cryptocurrency but a high-profile asset linked to the newly re-elected U.S. president. Unfortunately, CEXs failed to react swiftly enough to the market’s demands.
In stark contrast, DEX users on Solana recorded an astonishing $28 billion in trading volume within just three days, driven largely by the excitement surrounding $TRUMP and its follow-up, the $MELANIA token. Just a few years ago, DEXs were often perceived as too complicated for the average trader. However, the landscape has changed dramatically, indicating that decentralized finance (DeFi) is not just an alternative to CEXs; it may soon surpass them.
Bobby Ong observed, “The experience of using decentralized exchanges is far superior to that of centralized exchanges, and we’re seeing a growing preference for DEXs in the current market.”
A Shift in Trading Dynamics
Back in 2020, CoinGecko’s Yearly Crypto Report highlighted that while the combined trading volumes of CEXs and DEXs surged by $403 billion to $534 billion, CEXs accounted for 93% of that volume. Fast forward to 2024, and the same report revealed that the top 10 DEXs alone had achieved an impressive $1.76 trillion in trading volume. Additionally, in Q4 of 2024, Solana surpassed Ethereum for the first time as the leading blockchain, with DEX trading volumes hitting $219.2 billion—over 30% of all DEX activity, compared to Ethereum’s $184.3 billion.
Solana’s ecosystem has been designed with a strong focus on mobile applications. User-friendly wallets like Phantom and Jupiter have made mobile trading more accessible, a crucial factor as most traders today utilize mobile devices. Ong noted significant improvements in the user experience of mobile wallets, which has enhanced the overall engagement with on-chain activities.
He commented, “In the past, we primarily had MetaMask on desktop, and while it had a mobile version, it wasn’t very user-friendly. Now, Ethereum is seeing a transformation with the emergence of dedicated mobile apps from platforms like Uniswap and Coinbase Wallet.”
The Regulatory Tightrope for CEXs
As DeFi becomes increasingly user-friendly, Ong views these advancements as a potential existential threat to CEXs. He likened centralized exchanges to a large supermarket that provides a one-stop shop for various trading services. However, as DeFi evolves and becomes more accessible through DEXs, it poses a challenge for CEXs, especially those operating in regions with stringent regulatory frameworks.
CEXs like Binance, OKX, and ByBit face significant hurdles in jurisdictions where they lack comprehensive regulatory approval. Unlike smart contract-based DEXs, which allow instant trading of new tokens as soon as liquidity is provided, CEXs must navigate complex regulatory landscapes and often cannot offer immediate access to emerging tokens.
To maintain relevance, many CEXs are pivoting towards high-risk assets, as evidenced by Binance’s recent listings of speculative AI tokens. Critics argue that this shift reflects a desperate attempt to chase trading volume amidst rising competition from DEXs.
The Regulatory Landscape in Southeast Asia
In Southeast Asia, where Bobby and I are based, countries like Singapore, Malaysia, Thailand, and the Philippines have established clear licensing requirements for crypto exchanges. As regulations tighten, CEXs find themselves in a precarious position, often facing restrictions or bans in key markets. In contrast, DEXs operate without a central authority, existing solely as smart contracts on the blockchain, allowing for trading without the same compliance burdens that impact CEXs.
Bobby pointed out, “Do you know of any country that’s getting close to regulating DeFi?” To which I responded, “No,” marking another win for DEXs in the regulatory game.
The Rise of DEXs in Southeast Asia
Southeast Asia is a hotbed of tech-savvy youth eager to explore new financial opportunities. Unfortunately, aside from Singapore, the region offers limited options for high-yield investments. Unlike the U.S., where retail investors can engage with markets like the S&P 500, Southeast Asian markets impose high barriers to entry, such as steep fees and limited access to global equities. As a result, many individuals turn to crypto as a viable alternative.
For instance, the explosive rise of the $TRUMP token illustrates the potential for rapid gains in this space. While the crypto market grapples with its speculative reputation, this allure of quick financial returns continues to attract new participants.
Countries with large populations, such as India, Indonesia, Vietnam, and the Philippines, represent prime targets for user acquisition. However, many individuals in these regions have limited disposable income, leading them to engage in crypto primarily for short-term gains rather than long-term investments.
Bobby commented, “Many people are just there to make money. They aren’t particularly interested in decentralization or technology; it’s all about financial returns.” While CEXs provide a convenient entry point, those seeking the highest potential rewards often find themselves gravitating toward DEXs.
The Future of Financial Accessibility
Today’s crypto enthusiasts may not share the ideological fervor of early Bitcoin adopters. Instead, many are drawn to the financial opportunities offered by DEXs. While the risks of financial literacy and FOMO can lead to losses, I believe in the importance of maintaining open access to these markets. High barriers often imply that only the wealthy can participate, effectively shutting out those who could benefit the most from learning through experience.
DEXs currently hold a distinct advantage. They provide unrestricted access to financial opportunities with remarkable speed, allowing anyone to participate. As regulators work to catch up, the crypto community continues to thrive, seizing the moment while the market is ripe for growth.
The next time a mega memecoin emerges, all you need is a digital wallet, a DEX platform, and the determination to ride the waves of volatility while keeping an eye on market movements.
