Former Mt. Gox CEO’s EllipX Promises an Era of Transparency

Mark Karpeles, former CEO of Mt. Gox, is set to launch his new cryptocurrency exchange, EllipX, later this month. The platform will debut in Europe with its headquarters in Poland. Karpeles, who will act as the chief technology officer, emphasizes transparency and user-friendliness as key features of the new exchange.

NYSE-Like Model for Crypto Trading

Karpeles revealed the details during an interview at Korea Blockchain Week in Seoul. He noted that EllipX aims to distinguish itself from other exchanges by offering enhanced transparency. He added that unlike larger exchanges where users often lack visibility, EllipX will compartmentalize its operations to ensure transparency. This approach includes separating trading functions from brokerage and storage tasks.

EllipX plans to adopt a model similar to the New York Stock Exchange. In this system, trading will be handled by a central entity, while brokers in various countries will provide localized services. Additionally, crypto transactions will be processed through independent clearing houses like BitGo, separating them from brokers.

This focus on transparency comes in response to past scandals in the crypto industry, notably the collapse of the FTX exchange. Investors are increasingly demanding transparency and security, which Karpeles aims to address with EllipX. The exchange will provide technical data and conduct third-party audits to assure users of its integrity.

Furthermore, Karpeles is introducing the EllipX Wallet, designed for ease of use. The wallet features multi-party computation technology, eliminating the need for users to write down phrases. This user-friendly approach aims to attract both seasoned investors and newcomers to the crypto space.

In addition to EllipX, Karpeles is launching Ungox, a non-profit organization that will rate crypto projects and exchanges. This initiative is part of his broader effort to enhance industry standards.

Special Incentives for Mt. Gox Users

EllipX will also offer special incentives for former Mt. Gox users. Karpeles announced that Mt. Gox NFT owners will receive discounts on trading fees. Moreover, all Mt. Gox customers from 2010 to 2014 are eligible to receive these NFTs for free.

Karpeles expressed satisfaction with the advancements in blockchain technology and regulatory measures since the Mt. Gox breach. He believes that current security standards would prevent a similar incident today. He asserted that the progress made in security and regulation ensures a safer environment for crypto transactions.