DXS.app Exchange & The May 2021 Bitcoin Crash

This is why we are here.

The recent volatility in the crypto market (May 2021) was spectacular for the casual observer.

A 50% plunge in the price of an asset in the space of a couple of hours is not something that you see every day.

Did you change your name recently?

Yes! We used to be TDXP and we’re in the process of rebranding to DXS. We decided to make the change due to TD Bank Group contesting our TDXP EU trademark application.

Read this post if you’d like to learn more.

For the traders that were exposed to this price action,however, it was an earth-shattering experience.

Those that had open long positions needed to close their positions in a hurry.

And the traders that wanted to capitalise on the violent price action needed to open a short and get out before the market turned, or try to pick the the bottom of the move and long the retrace back up.

On face value, these options all seem viable. The ability of the trader to keep a cool head and make the correct decision under stress can result in minimising a loss or perhaps making a solid profit.

Big market moves provide big possibilities for large profits and losses.

It’s exciting, and the possibilities are real.

Unless something happens to prevent a trader from placing their trade.

What participants in the crypto markets actually encountered during this volatile period was something out of a nightmare.

The exchanges went dead.

No access. No login. No ability to place a trade.

People watched in horror as their positions went deep into the red and liquidated their accounts, while their exchanges prevented them from taking action.

Not just one exchange:

Lots. Representing a large portion of the market.

They all ‘had issues’ preventing traders from placing orders, right at the most critical time.

The scale of the liquidations was enormous. Some say it was the largest in Bitcoin history.

From Bybt.com:

Traders were wiped out.

Billions drained from their accounts.

And while the complaints piled up, the exchanges penned apologies for their technical issues and promised to rectify them as soon as they could.

The reasons, the technical issues, the explanations these exchanges made for what happened are irrelevant.

Whether it’s incompetence or something more sinister doesn’t matter.

The result is the same regardless.

And it’s not like this is the first time.

In fact, it’s a common routine during big market moves, and the outcome is always the same: a reduction in losses for the exchanges that closed, and a massive loss for the traders.

It stinks.

Big time.

And real people get hurt.

For traders to lose as the result of their decisions in the market is one thing.

That’s trading.

But to lose money due to technical issues at the exchange, right at the most critical time, is another.

This is exactly why DXS was created.

To give traders 100% control, 100% of the time.

Especially when the markets are in turmoil.

The motivation is simple, and incredibly powerful: If the trading platform cannot make money from the losses of traders, its only incentive is to provide the best service possible. To make sure there aren’t losses due to technical glitches, and to empower traders with the best tools and user experience available.

So they are always there when you need them. 24/7, day in, day out, and the trader is always able to execute their trades, regardless of market upheavals.

The upheaval of just a few days ago was a major test for the model.

And DXS came through with flying colours!

Not a single interruption to service.

Or an order that could not be executed.

Or difficulty logging in, or depositing or withdrawing funds.

Nothing.

Full service maintained, while the biggest names in the market fell to pieces and lost their clients’ money.

This is exactly what DXS is for, and we’re proud that we have proven the model under high-stress conditions.

The platform can achieve this through a unique combination of incentives and design.

More can be found here, in this in-depth explainer. (TDXP.app all-in-one explainer link)

Several of these design features are relevant to the market crash that we just experienced.

DXS cannot profit from the losses of traders.

So the incentive is to help traders win.

The DXS app is governed by an automated protocol that can’t be changed or manipulated.

No person is able to tweak the system to take advantage of people during big moves in the market.

Liquidations do occur.

They trigger when a position is in 80% loss. And that is the full extent of it. 80% of the position size.

Being liquidated on other platforms can result in complete loss of all funds in the entire account, and more.

DXS prefers to see trading losses minimised.

Traders own their own data.

DXS cannot (unlike most other platforms) sell their data to 3rd parties who can then use it to trade against them.

Traders control their own funds.

Traders hold their funds in their own Bitcoin wallet, and trade directly from there.

So they always have access and control of their funds, and the ability to deploy them at will.

Which is the opposite of what hundreds of thousands of traders recently experienced at their crypto exchanges.

And as DXS never has custody of funds, we can’t use them in ways to benefit ourselves.

Or use them to trade against the very trader that deposited the funds, which unfortunately happens elsewhere.

Independent pool of liquidity.

The liquidity pool is separate from the DXS trading platform. Meaning that DXS does not need to extract funds from traders to pay for the provision of liquidity services. Resulting in a cheaper, fairer platform that has no interest in the losses of traders.

Our goal at DXS is to create a platform where retail traders in crypto, stocks, commodities, indices and forex from all over the world can play in safety.

Where the rules of the game are fixed, transparent, and enforced by the distributed protocol.

These features are just a part of a unique business model that has the best interests of traders as its top priority.

That’s what DXS does.

And when there are massive moves in the market, there is no safer place for a trader to be.

That’s why DXS is here.

Did you change your name recently?

Yes! We used to be TDXP and we’re in the process of rebranding to DXS. We decided to make the change due to TD Bank Group contesting our TDXP EU trademark application.

Read this post if you’d like to learn more.