How Coinext Became a Top Brazilian Crypto Exchange

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Introduction

Founded in 2017 in Belo Horizonte, Brazil, Coinext has rapidly become one of the country’s leading cryptocurrency exchanges. With over 410k registered users, the platform consistently ranks among the top five exchanges nationally, facilitating the trade of more than 9.6 billion reais in cumulative volume. Coinext’s commitment to security, regulatory compliance, and user experience has solidified its position in Brazil’s dynamic cryptocurrency market.

Business Challenge

José Artur Ribeiro, CEO and Founder of Coinext, transitioned from traditional finance to the cryptocurrency sector in early 2017 after identifying significant arbitrage opportunities between U.S. and Brazilian Bitcoin markets. At that time, Brazil’s cryptocurrency exchange landscape was underdeveloped, characterized by platforms with inadequate technology and subpar user experiences. Recognizing the potential for a superior service, Ribeiro aimed to establish a professional, reliable, and secure exchange to meet the growing demand in Brazil.

The Solution

To expedite market entry and ensure a robust platform, Coinext made two strategic decisions:

• Leveraging Established Technology: Instead of building a platform from scratch, Coinext partnered with AlphaPoint to utilize their white-label solution, enabling a faster and more reliable launch.
• Assembling a Diverse Leadership Team: The founding team comprised experts in computer science, law, and finance, ensuring comprehensive oversight of technological development, regulatory compliance, and financial operations.

This collaboration allowed Coinext to launch within four months, quickly ascending from the 8th or 9th position to consistently ranking 2nd or 3rd in the Brazilian market. The integration of AlphaPoint’s Remarketer facilitated global liquidity sourcing, providing deep order books and competitive pricing essential for attracting and retaining users.

Results

Since its inception, Coinext has achieved significant milestones:

• User Base Expansion: The platform boasts over 90,000 registered users, reflecting strong market adoption.
• Trading Volume: Coinext has facilitated over 3.3 billion reais in cumulative trading volume, capturing nearly 10% of Brazil’s national cryptocurrency market.
• Competitive Fees: The platform offers reduced trading fees, with rates ranging from 0.25% to 0.50%, and free deposits, ensuring cost-effective transactions for users.
• Market Position: Consistently ranking within the top five exchanges nationally, Coinext has established itself as a trusted platform for cryptocurrency trading in Brazil.

Key Learnings

Looking ahead, Coinext envisions a place for tokenization products, along with a payments/commerce platform that provides customers an easy and cheap means of receiving money in crypto, aiming to provide a comprehensive suite of financial products to its users that can also be utilized in a high-speed Crypto as a Service model. Brazil is advancing its financial infrastructure with the development of Drex, the country’s central bank digital currency (CBDC). Drex aims to provide a secure and regulated environment for digital transactions, enhancing the efficiency of Brazil’s financial system. Ribeiro views the introduction of Drex as a significant advancement for blockchain adoption in Brazil, stating, “That’s going to put Brazil on another level in terms of blockchain adoption, in terms of using blockchain as infrastructure for the whole financial market industry.”