Core Insights - A good exchange is defined by its performance during market disruptions rather than its surface-level features [1] - The November 2025 Exchange Benchmark by CoinDesk evaluated 81 exchanges on various metrics, showing an increase in "Top-Tier" exchanges and improved transparency regarding asset holdings [2] - The ability of exchanges to handle extreme market conditions and execute trades predictably is crucial, yet many still operate under retail-oriented structures [3] Group 1: Exchange Performance - The recent liquidation event on October 10 resulted in nearly $20 billion in leveraged positions being liquidated within 24 hours, highlighting the rapid stress that can occur in markets [4] - Traditional finance (TradFi) has established protocols like circuit breakers and volatility bands to manage market stress, while crypto markets often lack clear and enforceable rules [5] Group 2: Market Structure and Operations - Many exchanges prioritize speed over fairness in their matching engines, which can disadvantage institutional traders who rely on transparent order routing information [3] - The current market cycle is perceived to favor institutional investors, yet the existing market structures are still tailored for retail trading [3]