Mark Karpeles, the former CEO of Mt. Gox, is preparing to launch a new cryptocurrency exchange called EllipX later this month. Based in Poland, EllipX will focus on transparency, especially for newcomers to the crypto world. Karpeles, who will serve as the chief technology officer (CTO), intends to offer a platform that is more transparent than many of the larger exchanges currently available. He explained that most major exchanges, while large, often lack clear transparency about their ownership and operations. EllipX will be designed to ensure that consumers can easily understand who is running the platform and how it operates.
One of the key aspects of EllipX’s design will be the separation of different operational roles within the exchange. According to Karpeles, most exchanges combine functions like customer service, trading, and crypto storage in a single entity. However, EllipX will compartmentalize these functions to make the platform more transparent and secure. The structure will be similar to the New York Stock Exchange, with one entity handling the trading while brokers provide localized services in various countries. The movement of crypto assets will be managed by clearing houses, separate from brokers, further ensuring transparency and security.
Transparency has become a crucial issue in the crypto industry, especially after the collapse of FTX, which showed how user funds were mismanaged behind closed doors. Karpeles aims to restore trust by making technical data accessible to consumers and subjecting different entities within the platform to third-party audits. By doing so, EllipX will offer an open environment where users can track transactions and verify the platform’s integrity. Karpeles hopes this approach will set a new standard for the industry, encouraging other exchanges to follow suit and prioritize transparency in their operations.
In addition to the exchange itself, Karpeles is also working on launching Ungox, a non-profit organization that will rate cryptocurrency projects and exchanges. EllipX will also feature a user-friendly wallet equipped with multi-party computation technology, making it easier for users to manage their crypto assets. The wallet eliminates the need for users to write down recovery phrases, simplifying the process of managing digital currencies. With these innovations, Karpeles aims to provide a more secure, transparent, and user-friendly experience, which he hopes will position EllipX as a major player in the crypto exchange market.
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