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Daily fraud update: 18th May

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Crypto asset platform launches incentivised shift to DEX

A crypto-supported synthetic asset platform has said that it will offer crypto worth more than $40,000 in prizes to some of its users.

The offer comes as part of Synthetix’s attempts to incentivise people to use a beta version of its decentralised exchange.

A decentralised exchange, known as a DEX, is an environment in which those trading cryptocurrencies do so directly from their own wallets.

According to some in the crypto world, this type of exchange is better than centralised exchanges, or CEXs, in part because of security – though they can be slow and difficult.

Centralised exchanges run the risk of being exploited by cybercriminals attempting to steal cash but tend to offer other advantages, including user-friendly high speeds.

Users who want to participate in the competition run by Synthetix will need to send a tweet before a deadline on Tuesday 19th May.

They will then be asked to trade using a beta version of the new system, with the most successful traders receiving prizes.

According to Kain Warwick, who is the CEO of the firm, there is a “trade-off” to be had when it comes to choosing the types of exchange on offer.

“While DEXs offer significant improvements over CEXs [centralised exchanges] in terms of safety of funds and transparency, there is typically a painful trade-off on transaction speed,” he said.

The new DEX offered by his firm, however, is intended to be faster.

According to a post on the Synthetix website, the firm worked alongside a company called Optimism to develop the new version.

“Synthetix and Optimism are extremely excited to announce a new demo of Synthetix.Exchange on OVM (Optimistic Virtual Machine), a Layer 2 (L2) scaling solution,” it said.

“This integration demonstrates the power of OVM to deliver high-speed Ethereum transactions to supercharge the Synthetix trading experience.”

The firm also explained how the competition would work – and what user experience it expected participants to have.

“During this demo, Synthetix and Optimism will be running a trading competition on l2.synthetix.exchange, with 50,000 SNX in prizes,” it said.

“This competition will encourage traders to experience the OVM, which enables decentralised financial platforms to operate at speeds usually associated with centralised systems.”

“L2 scaling is critical to Synthetix.Exchange as it continues to launch an unsurpassed trading experience on Ethereum,” it added.

It said that users who wanted to participate needed to request some tokens to trade on the firm’s exchange platform.

“During the onboarding, a new wallet in the Tweet preview will be generated for each trader to use in the competition,” it said.

“Prizes will be awarded to the traders with the largest wallet balance according to the following structure,” it said.

It went on to outline the 20 prizes on offer to those with the highest balances, with the largest being 15,000 SNX.

SNX stands for Synthetix Network Token.