After FTX: Defi can go mainstream if it overcomes its flaws
The collapse of FTX and other centralized platforms in 2022 pushed investors towards noncustodial platforms.
Analysis
The collapse of the now bankrupt cryptocurrency exchange FTX has raised many concerns about unregulated centralized platforms.
Investors are now coming to question how safe it is to keep their funds on these exchanges and have expressed serious concerns about centralized decision-making without any scrutiny.
FTX held one billion in a client's fund and was found to use the crypto assets deposited by the client to mitigate its own trading losses.
Furthermore, a recent report suggests that the fall of many crypto exchanges over the past decade has permanently removed 1.2 million Bitcoins (BTC) – almost 6% of all Bitcoins – from circulation.< /p>
The revelation of unethical practices by FTX during its bankruptcy filing has caused panic among investors who are already losing faith in these centralized trading companies. Exchange outflows hit all-time highs of 106,000 BTC per month in the wake of the FTX fiasco and loss of confidence in centralized exchanges (CEX) pushed investors towards self-custody and decentralized finance platforms (DeFi).
Users have been withdrawing money from crypto exchanges and turning to noncustodial options to trade cash...
The collapse of FTX and other centralized platforms in 2022 pushed investors towards noncustodial platforms.
Analysis
The collapse of the now bankrupt cryptocurrency exchange FTX has raised many concerns about unregulated centralized platforms.
Investors are now coming to question how safe it is to keep their funds on these exchanges and have expressed serious concerns about centralized decision-making without any scrutiny.
FTX held one billion in a client's fund and was found to use the crypto assets deposited by the client to mitigate its own trading losses.
Furthermore, a recent report suggests that the fall of many crypto exchanges over the past decade has permanently removed 1.2 million Bitcoins (BTC) – almost 6% of all Bitcoins – from circulation.< /p>
The revelation of unethical practices by FTX during its bankruptcy filing has caused panic among investors who are already losing faith in these centralized trading companies. Exchange outflows hit all-time highs of 106,000 BTC per month in the wake of the FTX fiasco and loss of confidence in centralized exchanges (CEX) pushed investors towards self-custody and decentralized finance platforms (DeFi).
Users have been withdrawing money from crypto exchanges and turning to noncustodial options to trade cash...
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