John McAfee, the cybersecurity mogul and arguably one of the most controversial figures in the space, has just launched a decentralized exchange (DEX) that runs on the Ethereum blockchain. According to the platform’s official website, McAfee DEX is now running however in a beta status after its launch on October 7th.
.McAfeedex.com beta is live. Play with it.
— John McAfee (@officialmcafee) October 7, 2019
The former antivirus software tycoon has been a vocal advocate of the crypto ecosystem; time and time again he has voiced his support for decentralized exchanges. In fact a recent video on Twitter, McAfee blatantly called out the United States and other developed nations for controlling the general public through the commercial and very centralized financial system.
Decentralized. Distributed. Open source.
No listing fees. No personal information. 0.25% taker fees. No maker fees. No deposits. Smart contract assurance – trustless. All Ethernet based tokens. EOS, Neo, and more coming soon. How did we do it? pic.twitter.com/AN8TZ02UAO
— John McAfee (@officialmcafee) October 6, 2019
McAfee further dislikes the concept of the traditional, centralized financial system because he believes they are at a risk of shutting down at any given moment by regulators, thus leaving the customers in the dark. On the other hand, decentralized platforms due to their fundamental makeup, cannot be closed down just by anyone because they are not controlled by any single party.
There seems to be an undeniable gap between McAfee’s understanding of the working of decentralized exchanges and how they actually operate in the real world, which is with the approval of regulatory bodies like the Securities and Exchange Commission (SEC). But the newest DEX platform by McAfee has been engineered around his idea of freedom.
According to reports, the platform presented by McAfee requires “no name, no documents, no email,” and “no bank info”. Basically it’s foregoing the widely used know-your-customer (KYC) policy, although it is unclear how long the exchange can manage to survive like this; chances are it might cave to the norms. A KYC procedure may be inevitable in the future, as other decentralized non-custodial markets like IDEX, EtherDelta too had to set it up eventually.
Moreover, reports reveal that nothing on the McAfee DEX will be monitored by any kind of authoritative body and there will be no restrictions, no complex compliance procedures and no listing fees either. But the platform will be charging a trading fee, which will be minimal.
According to McAfee, the 0.25% fees will go to the takers, for the makers, on the other hand, there will be no fees whatsoever. Further of the 0.25 fee, 0.05% will be paid to the exchange operator while the rest 0.20% will be split equally and airdropped to ESH and DEX token holders.
McAfee further revealed in his tweets that the installation at the portal is not yet automated so “it takes two days of hand-holding by us”. Meaning that the McAfee team will be offering their assistance to the interested parties for the installation of the software, with a fee of $395. He further added:
You get 0.05% of all transactions coming through your portal. You must figure out how to promote your portal.
In addition, he announced that DEX would have shared liquidity, which means that all the portals would have access to all maker/taker information coming through from every other portal on the platform and the McAfee DEX portal.
Though aiming for the perfect decentralized exchange, McAfee has subtly told his followers to be realistic as the platform is not nearly perfect, as yet. He urged his users:
Play with it, don’t expect miracles at first. Play with it until it becomes real.
Either way it is a venture that is sure to ruffle some feathers, but McAfee has never been one to shy away from any ruffling because he is notorious for his non-conforming beliefs. According to Fox News, McAfee is on a boat fleeing from the United States authorities, at the same time he is also trying to run for President of the country as well.
This right here isn’t McAfee’s first rodeo with a DEX platform, in fact, it marks the second DEX launched by him. Back in June, he launched the McAfee Magic, a non-custodial exchange that uses bot activity and is powered by the ARB token. The McAfee Magic exchange, however, is not listed among recognized market operators.
Other Exchanges & DEX
The popularity of Decentralized exchanges has gone up significantly recently as several significant crypto platforms have launched their own DEX. Binance, the largest cryptocurrency exchange platform by daily trading volume, launched its own DEX on its native mainnet earlier in April.
In addition to Binance, other crypto exchanges are also reportedly eyeing their own DEX including the Malta-based platform OKEx and the South Korean crypto exchange Bithumb.