Binance CEO Changpeng Zhao (CZ) has raised concerns about front-running on decentralized exchanges (DEXs), urging the crypto community to address the issue to protect users and maintain trust in DeFi platforms.
Binance Founder CZ Proposes DEX to Prevent Front-Running
► https://t.co/mnQsqChP1C https://t.co/mnQsqChP1C— Decrypt (@DecryptMedia) June 2, 2025
Front-running occurs when a bot or miner identifies a pending blockchain transaction and submits their own with a higher fee to profit first, often harming regular users. This issue is prevalent in decentralized exchanges (DEXs) due to their transaction transparency.
“Given recent events, I think now might be a good time for someone to launch a dark pool perp DEX,”
Zhao expressed via X.
“I have always been puzzled with the fact that everyone can see your orders in real-time on a DEX. The problem is worse on a perp DEX where there are liquidations.”
He has called for the development of technical solutions to combat front-running. He suggests that DEXs should explore ways to hide transaction details until they are confirmed, making it harder for bad actors to exploit the system. His comments have sparked debate across the DeFi sector, with many agreeing that more must be done to protect users but also noting the technical challenges involved.
Front-running erodes trust in decentralized finance by giving unfair advantages to those with technical resources or insider knowledge. As DEXs grow in popularity, solving this issue is critical for their long-term success and for maintaining a level playing field for all users.
Notably, Zhao met with World Liberty Financial (WLFI) founders Zach Witkoff, Zak Folkman, and Chase Herro in Abu Dhabi to discuss ways to speed up the worldwide acceptance of cryptocurrency and establish innovative benchmarks for decentralized finance (DeFi).
WLFI is executing a strategy to enter new international markets, as evidenced by a recent meeting publicized on X. This initiative reflects WLFI’s dedication to increasing its influence within the worldwide cryptocurrency space, although the meeting did not include any immediate announcements regarding funding or new tokens.
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