When/if proof of solvency is solved --- and most of the existing exchanges are no more --- we can start working on proof of ethics. Prove that a CEX is not "front running" transactions for example.
These are not easy issues to address with technology. And there are so many different ways for centralized insiders to cheat, I am highly skeptical it can ever really be achieved. The only reasonable approach is to "decentralize" the market making somehow --- eliminate CEXs.
Right now, market manipulation is a virtual certainity in my opinion because there is insufficient rules and enforcement in place to prevent it. If it can happen, it will happen.
There is no real transparency or logical reason to trust that CEXs are operationing a truly "free" and open market. If you choose to swim with sharks, maybe you can pickup an easy meal or maybe you will become one.
These are not easy issues to address with technology. And there are so many different ways for centralized insiders to cheat, I am highly skeptical it can ever really be achieved. The only reasonable approach is to "decentralize" the market making somehow --- eliminate CEXs.
Right now, market manipulation is a virtual certainity in my opinion because there is insufficient rules and enforcement in place to prevent it. If it can happen, it will happen.
There is no real transparency or logical reason to trust that CEXs are operationing a truly "free" and open market. If you choose to swim with sharks, maybe you can pickup an easy meal or maybe you will become one.
https://www.investopedia.com/terms/f/frontrunning.asp