Overview
CoinEx Token (CET) is the utility token of CoinEx, a cryptocurrency exchange founded in 2017 by Haipo Yang, the creator of the ViaBTC mining pool. CoinEx positions itself as a user-friendly exchange with competitive fees, extensive token listings, and accessible trading for both beginners and experienced traders. The exchange operates globally with a focus on markets in Asia.
CET serves as the ecosystem token for fee discounts, staking, CoinEx Smart Chain (CSC) gas, and various platform promotions. CoinEx has maintained consistent operations since 2017, surviving multiple market cycles without major incidents. The ViaBTC heritage provides credibility in the mining community, and the exchange's low-profile approach contrasts with more marketing-aggressive competitors.
Exchange Health
CoinEx typically ranks between 20th-40th among global exchanges by reported volume. The exchange supports 700+ cryptocurrencies and 1,000+ trading pairs, providing broad altcoin access. Trading volumes are moderate — lower than top-tier exchanges but consistent enough to suggest genuine organic activity. Independent volume analysis suggests CoinEx's reported numbers are more credible than some peers, though inflation concerns exist for all mid-tier exchanges.
The exchange was founded by an established figure in the Bitcoin mining community (Haipo Yang, ViaBTC), which provides some founder credibility. CoinEx has operated since 2017 without major security breaches or fund losses — a six-year clean operational record. However, in September 2023, CoinEx suffered a hot wallet compromise resulting in approximately $70M in losses. The exchange absorbed the losses and refunded affected users, demonstrating financial resilience but highlighting security vulnerabilities.
The product suite includes spot, futures, margin, and earn products. CoinEx Smart Chain (CSC) provides an EVM-compatible blockchain for DeFi, though CSC's ecosystem is minimal. The exchange has obtained some regional licenses but lacks comprehensive regulatory coverage.
Token Utility
CET provides tiered trading fee discounts based on holdings (up to 40% discount), VIP status upgrades, and priority access to new token listings and promotions. The fee discount structure is competitive and provides clear utility for active CoinEx traders. CET holders access CoinEx's launchpad and receive preferential staking rates in the exchange's earn products.
On CoinEx Smart Chain, CET functions as the native gas token. CSC is EVM-compatible and supports DeFi applications, though ecosystem activity is negligible — TVL is minimal, and developer adoption has been sparse. The utility is technically available but practically limited. CET also enables governance voting on certain exchange decisions, though governance participation is limited.
Tokenomics
CET has a total supply that has been progressively reduced through burns. CoinEx conducts regular token burns funded by trading fee revenue, with burn records published and verifiable on-chain. The burn mechanism is consistent and well-documented, providing predictable supply reduction over time.
The initial token distribution included exchange operations, team reserves, and community allocations. CoinEx has conducted buybacks during market downturns, providing price support. The tokenomics model follows established exchange token patterns — revenue-funded burns with utility-driven demand through fee discounts. The model is straightforward and functional.
CET's market cap and liquidity are modest. Exchange listings for CET are primarily on CoinEx itself, with limited external exchange availability, creating liquidity concentration risk.
Transparency
CoinEx's transparency is below average for its tier. The exchange published proof-of-reserves following industry-wide pressure post-FTX, using a Merkle tree approach. However, PoR updates are infrequent, and the depth of attestation is limited compared to best-in-class exchanges (OKX, Bitget).
Financial disclosures are minimal — revenue, profitability, and operational costs are not publicly available. The exchange is incorporated offshore (Hong Kong, with global operations) and provides limited corporate governance documentation. The 2023 hot wallet incident demonstrated both a security weakness and a willingness to absorb losses, but the post-incident transparency about root cause and remediation was adequate.
The ViaBTC connection provides some transparency about the founder, but operational transparency about the exchange itself is limited. Regulatory licensing is narrow, with the exchange operating primarily through offshore entities.
Risk Profile
CET carries moderate counterparty risk for a mid-tier exchange token. The 2023 hot wallet exploit is a material security concern, though the successful user reimbursement demonstrates financial reserves. CoinEx's limited regulatory licensing creates vulnerability to enforcement actions as regulatory frameworks tighten globally.
The exchange's relatively low profile reduces some headline risk but also means less external scrutiny. Liquidity concentration (CET primarily trades on CoinEx) creates circular dependency risk — if the exchange faces issues, there are limited external venues to trade CET.
The ViaBTC mining pool connection provides some financial backstop and diversification, but CoinEx operates as a separate entity. Competition from larger, better-regulated exchanges is an ongoing structural challenge.
Risk Factors
- Hot wallet exploit history: The 2023 $70M compromise demonstrates security vulnerability
- Limited transparency: Infrequent PoR, no financial disclosure, offshore incorporation
- Liquidity concentration: CET primarily trades on CoinEx, creating circular risk
- Regulatory gaps: Narrow licensing and potential vulnerability to enforcement
- CSC adoption failure: CoinEx Smart Chain has negligible ecosystem activity
- Mid-tier competition: Squeezed between larger exchanges and specialized platforms
- Volume credibility: Standard mid-tier exchange volume inflation concerns
Conclusion
CET is a functional mid-tier exchange token backed by an exchange with a six-year track record and credible founding team. The ViaBTC heritage, consistent burn mechanism, and competitive fee discounts provide genuine utility for active CoinEx users. However, the 2023 hot wallet exploit, limited transparency, narrow regulatory positioning, and failed CSC ecosystem temper the outlook. CET is best suited for regular CoinEx traders who benefit directly from fee discounts. As a standalone investment, the risk-reward is average for the mid-tier exchange token category.
Sources
- CoinEx official documentation and blog
- CoinEx Smart Chain explorer
- CoinGecko and CoinMarketCap exchange rankings
- CoinEx proof of reserves disclosures
- ViaBTC mining pool information
- 2023 hot wallet incident post-mortem reports
- Independent exchange volume analysis