The current trading infrastructure in Web3 is inadequate for institutional participants, lacking the necessary privacy, scalability, and sophistication. This gap is highlighted by Binance co-founder CZ's proposal to create a dark-pool decentralized exchange (DEX), intended to protect high-volume trades from vulnerabilities like front-running and manipulation seen in traditional finance. As the crypto market matures with billion-dollar digital assets and a wider user base, legacy execution models such as over-the-counter desks and peer-to-peer swaps prove insufficient for institutional investor needs. The prevalent transparency in public blockchains can deter large players who require discretion in their trading strategies. CZ’s concept of a dark pool DEX aims to leverage privacy-enhancing technology to shield order mechanics until finalization, thereby reducing market exposure. This evolving perspective suggests that as Web3 advances, its infrastructure must transform to satisfy the demands of serious capital investments while striking a balance between accountability and the need for privacy in transactions.

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