What is now the difference with Ponzi platforms with cryptocurrency exchanges

[gantez]

I am not surprise that some media now started to report crypto exchange as Ponzi and comparing it that way. This is because of the FTX crash making customers fund disappearing to $1 billion. The exact amount is still not clear because different people are giving different amount to what is lose and  Sam Bankman-Fried saying he will write his own story about the issue but the point is he "secretly" transferred money to a trading company Alameda Research. This is IMO a black weekend for people in cryptocurrency because just when people start to look for investment in cryptocurrency now we have FTX top officials secretly embezzling customer money to secretly invest in trading to make personal gain.



Where now is the trust? This is blackmail to crypto industry. There was ICO scam and others happened to cryptocurrency.


We try to running off from Ponzi and we begin to have exchange crash not because of hack but someone trusted with customer money is taking it away secretly. . This is not good to hear. It is sad to read about it and I know you are not happy about Sam Bankman-Fried action that is putting cryptocurrency investors into economic challenge in this hard knock inflation season.

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

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[coupable]

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

To put your savings in your own wallet and secure it with well-known means of protection, including not to share your private keys and passwords with anyone. Any damage that occurs to it will be your responsibility alone, and we cannot blame anyone.
As for decentralized platforms, they may be more secure than centralized platforms, but this does not mean that they are the best way. I remember the CryptoBridge platform when it was launched it was a decentralized platform and then suddenly they started asking for identity documents from users before the platform stopped and users' money was lost. There are many other examples that confirm that it cannot be trusted one hundred percent.

[Flexystar]

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

I will go with "IT IS WHAT IT IS".

Exchanges was not the real "idea" behind satoshi's vision. It is actually exactly opposite what he thought and launched the blockchain. It's like Satoshi created apples for us but some thinker later created their own oranges and covered with the Apple skins.

These days what you see is that skin is peeling off and reality is getting exposed. Imagine if there was only bitcoin and the only way to trade it was via sending them from one wallet to other wallet with trust factor being the mutual understanding. I think it would have been the best case scenario.

May be the price would have been little but loss wouldnt have been in billions.

[Lucius]

~snip~
Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

I never trusted those people, so I can't say that they let me down in anything or that the trust was broken. Bitcoin was conceived as a decentralized system and everyone should use it that way, everything else is wrong and risky, which has been proven many times throughout the short history from 2009 to today.

As a result of everything, it is easy to conclude that most people did not understand the essence of the existence of Bitcoin, but they understood that various shitcoins can be very profitable, especially when they are in a direct relationship with some people who position themselves as so-called crypto leaders whom people unreservedly trust.

This whole industry is full of illusions of meaningfulness in false promises, which unfortunately many grasp as the last straw of salvation, but unfortunately they do not know that the foundations of this illusion are built on very shaky foundations, and that they are doomed to a complete collapse sooner or later.

Unfortunately for all honorable and honest people who are in the world of cryptocurrencies, such events definitely send a very ugly and negative image to the public, who are wondering how all this is possible and why it is not regulated.

[mu_enrico]

You can't trust exchanges since they're not regulated, at least not as regulated as banks, where they have many safeguard systems in place to ensure the fund's security. Many people don't understand that putting money on crypto exchanges won't get any protection, bailouts, or whatever. When it's lost, it's lost... People can't ask for their money back. At the moment, just use wallets that only you have access to the keys. This situation will be improved with better regulations, but not in the near future IMO, so it's best to get used to the "not your keys, not your coins" thing.

Btw DEX is also not secure, remember there's this rug pull thing...

[Inwestour]

To put your savings in your own wallet and secure it with well-known means of protection, including not to share your private keys and passwords with anyone. Any damage that occurs to it will be your responsibility alone, and we cannot blame anyone.
As for decentralized platforms, they may be more secure than centralized platforms, but this does not mean that they are the best way. I remember the CryptoBridge platform when it was launched it was a decentralized platform and then suddenly they started asking for identity documents from users before the platform stopped and users' money was lost. There are many other examples that confirm that it cannot be trusted one hundred percent.

You need to have good knowledge in order to be able to protect your investments from fraudsters. But for this you need to spend a lot of time to thoroughly understand all aspects, it is difficult and therefore most people study these important issues superficially. In the end, it's about your money, and so it should be one of the main things you need to worry about.

[Despairo]

Ponzi is where you deposit 1 and get 2 in short time, few tokens also offer staking that similar like ponzi where the return is to good to be true. Centralized exchanges isn't a ponzi if you only use the exchange feature and you wouldn't lose your coins since in staking you need to leave your coins on the exchange.

Btw DEX is also not secure, remember there's this rug pull thing...

I believe you're refer to Uniswap, Pancakeswap etc that's not a DEX, but they're just a swap platform. A real DEX doesn't hold your coins, similar like Bisq and it's really high security since the exchange never got hacked and the developer purpose is not to make money.

[Yatsan]

Ponzi Platforms would always be a downside but cryptocurrency exchanges won't. Not because one exchanger have failed, means every exchangers would be the same. It is always wrong to generalize. Exchangers will be needed for years as long as cryptocurrencies are not yet widely accepted as a mode of payment; you just have to choose one trusted exchanger to ease your worries.

To put your savings in your own wallet and secure it with well-known means of protection, including not to share your private keys and passwords with anyone. Any damage that occurs to it will be your responsibility alone, and we cannot blame anyone.
As for decentralized platforms, they may be more secure than centralized platforms, but this does not mean that they are the best way. I remember the CryptoBridge platform when it was launched it was a decentralized platform and then suddenly they started asking for identity documents from users before the platform stopped and users' money was lost. There are many other examples that confirm that it cannot be trusted one hundred percent.

You need to have good knowledge in order to be able to protect your investments from fraudsters. But for this you need to spend a lot of time to thoroughly understand all aspects, it is difficult and therefore most people study these important issues superficially. In the end, it's about your money, and so it should be one of the main things you need to worry about.

Everything is online. Expect that there are risk because you don't physically hold your assets. Worrying would just waste your time. If you're anxious then pull your money out, that's how simple it is. But to those who are here in this industry for years, you just need to secure important details from other people, never also access untrusted websites. If the platform itself is the problem, how'd you know? It is hard to tell especially if platforms have good reputation.

[The Sceptical Chymist]

Where now is the trust? This is blackmail to crypto industry. There was ICO scam and others happened to cryptocurrency.

It's not blackmail but apparently a straight-up scam--and it very much reminds me of the Mt. Gox disaster, where there was essentially one individual in charge of a lot of people's money, and that individual was inept at finance at best.  This guy SBF looks like a complete tool to me, and it's amazing that he was treated so well in the media prior to this given that he made a statement to the effect that he's in the Ponzi business.  I mean, Jesus.

FTX's extensive advertising probably pulled in a shitload of money from people who otherwise would never have invested in crypto and who were too ignorant to know not to keep their crypto on a platform like FTX.  That's why this thing is much worse than Mt. Gox, which affected investors who were into bitcoin in the early days.  This brand of shenanigans attracts the attention of regulators like nothing else, and I can't imagine the outcome is going to be good for any of us.

[Accardo]

Since actions like this persists, then cryptocurrency exchanges should be regulated. They should be a certain amount, just like banks, on reserve before an exchange gets established, so if they go bankrupt the funds can be used to settle affected customers. The differences between a Ponzi site and exchange is the eligibility to swap currencies on exchanges and Ponzi sites don't come out plain to tell customers that their money is gone, they disappear.

[mu_enrico]

I believe you're refer to Uniswap, Pancakeswap etc that's not a DEX, but they're just a swap platform. A real DEX doesn't hold your coins, similar like Bisq and it's really high security since the exchange never got hacked and the developer purpose is not to make money.

Yep, Uniswap et al. however, it doesn't mean Bisq never got hacked tho:
https://www.google.com/search?q=bisq+hack

I remember playing with Bisq years ago I think the reason the last hacked news was in 2020 is that there are not many activities/money on the platform. It never got popular. Wait until it becomes as big as FTX et al., and we'll see the same shenanigans.

Since actions like this persists, then cryptocurrency exchanges should be regulated. They should be a certain amount, just like banks, on reserve before an exchange gets established, so if they go bankrupt the funds can be used to settle affected customers.

There's no such protection like that AFAIK. The only protected fund is your bank savings hence the term "risk-free" assets.

[mk4]

Exchanges being insolvent due to whatever reason isn't anything new — that's one of the reasons why the quote "not your keys, not your coins" has been repeatedly said thousands of times already.

But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.

[AmoreJaz]

Exchanges being insolvent due to whatever reason isn't anything new — that's one of the reasons why the quote "not your keys, not your coins" has been repeatedly said thousands of times already.

But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.

they are of different types of businesses. because ponzi schemes at the very beginning have their intentions of screwing up people. on the other hand, if you are running legit exchange, you want your business to grow and expand throughout the years. so in case of ftx, i don't think sam was thinking of having this failure knowing that it will surely ruin his reputation in crypto world.

[blockman]

They may be a regulated company and these exchanges have the blessing of the government where they're operating. But their moves are unregulated and they can do inside jobs just as what happened to FTX.
They don't care about the trust that has been in them from their depositors, it's a thing that they've taken advantage and I doubt it that they'll feel sorry for what they've done.
It's worrying that this has happened from one of the ex-trusted exchanges and who knows how long they've been doing this.

[ChiNgadOr]

FTX had become the recent trend of fail exchange that lack strong team that will make a better exchange. We should know that their is a different between an exchange and ponzi scheme. Most exchanges that short down do not do so because they intend to go away with customers funds. This happens mostly because of hacking, bad management and other factors that can easily tag a company bad and we should not be happy when many had lost their funds without having a an that they will get compensated.

[mk4]

so in case of ftx, i don't think sam was thinking of having this failure knowing that it will surely ruin his reputation in crypto world.

He saw an opportunity to take a huge risk, and he stupidly did. Dude was printing so much money with the FTX platform but yet he decided to a unnecessarily retarded risk.

[Die_empty]

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

Trust is a priceless virtue and it is earned and cannot be bought. These exchanges have to prove that they can be trusted. From recent happening,most of them if not all cannot be trusted. Even if they have good intentions, the government would influence their actions. Most of these exchanges are managed by smart young chaps that are not well grounded in business management that is why they make costly mistakes. What is your explanation for some promotion and unthinkable bonuses and profit some of them offer to customers, they are operating like ponzi schemes. Until we have an exchange that is free from individual(s) or government control, keeping your coins in a personal wallet would always remain the safest option.

[Kakmakr]

I think in most cases it boils down to greed and poor management decisions. Let's look at Mt Gox as an example... When Jed McCaleb handed over Mt Gox to Mark Karpelès.... he was under the impression that Mark Karpelès was capable to run it. Mark Karpelès had no business sense, he was simply a PHP developer and a small time entrepreneur.  

Sam Bankman-Fried  has a degree in physics and a minor in mathematics... but to his credit, he made his wealth with Cryptocurrency arbitrage, so he gained some knowledge on Crypto Exchanges.  

[Adamlaria]

A Ponzi scheme is a scam with no real underlying business generating revenue, and later contributor funds simply pay off earlier contributors.

Ponzi schemes and pyramid schemes are both ways of generating the appearance of spending without real income. While tulips can be very valuable, the outlays in the business are usually so small that it can hardly be called a true investment versus speculation.

[hugeblack]

This happens everywhere. cryptocurrency exchanges need hot money to compete, and this hot money is not present in the form of investments, shares from investors, government support, etc. Therefore, many platforms resort to self-financing, which is printing more tokens to obtain funds to buy REAL cryptocurrencies or enter into a spiral of loans and others.

If the platform manages this money well, it will prosper and may not stand if a blow is directed at it, but what happened with FTX is a complete mess that led to this rapid collapse.

[darewaller]

Ponzi is where you deposit 1 and get 2 in short time, few tokens also offer staking that similar like ponzi where the return is to good to be true. Centralized exchanges isn't a ponzi if you only use the exchange feature and you wouldn't lose your coins since in staking you need to leave your coins on the exchange.

Btw DEX is also not secure, remember there's this rug pull thing...

I believe you're refer to Uniswap, Pancakeswap etc that's not a DEX, but they're just a swap platform. A real DEX doesn't hold your coins, similar like Bisq and it's really high security since the exchange never got hacked and the developer purpose is not to make money.

This is the thing that bugs me the most about the crypto world. They do not even know what a ponzi is and they still like to talk about what type of scam something could be. Centralized exchanges are just like banks, they take people’s money and let them do whatever they want with it, while still keeping the ownership. You want to trade with it? Sure go ahead, you want to stake it, sure go ahead, you want to loan it out? Sure, just do that.

But all the time the money stays in the exchange, same as banks. The difference is that when banks collapse, government bails them out, but when an exchange collapses, there is nobody to bail them out and they just bankrupt right away.

[kro55]

Since actions like this persists, then cryptocurrency exchanges should be regulated. They should be a certain amount, just like banks, on reserve before an exchange gets established, so if they go bankrupt the funds can be used to settle affected customers. The differences between a Ponzi site and exchange is the eligibility to swap currencies on exchanges and Ponzi sites don't come out plain to tell customers that their money is gone, they disappear.

What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.

In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.

[lixer]

FTX had become the recent trend of fail exchange that lack strong team that will make a better exchange. We should know that their is a different between an exchange and ponzi scheme. Most exchanges that short down do not do so because they intend to go away with customers funds. This happens mostly because of hacking, bad management and other factors that can easily tag a company bad and we should not be happy when many had lost their funds without having a an that they will get compensated.

I think they have a strong team because if not then they won't grow and became popular but I think they got greedy and not contented on what they currently have. This is where they messed up with the users funds in hopes of growing it more bigger but they fail and now they are in this sticky situation. Once again, this shows that greed isn't a good quality to adopt with it.

What happened with FTX is intentional and not a cause of bad management. I heard hacking have also happened afterwards but there are rumours which says that the hack was intentional or an inside job. Many will say that FTX is not far from a ponzi but there are still other exchanges which are not like that. Users should only stay vigilant and don't store most of their funds inside a cex, just in case history repeats itself.

[gantez]

But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.

Yes like you said the CEO handling of customer money in a way that they are no more in the spreadsheet or balance of the exchange account, this is fraud. Fraud is in different forms. Ponzi scheme purpose is to finally run with money from people and if exchange embezzle people's money in the manner using it to gamble or trade, it is fraud like ponzi.

[Lucius]

Sam Bankman-Fried  has a degree in physics and a minor in mathematics...

What an irony in the fact that someone trusted a man named Bankman, and it is even more ironic that he managed to sell them his worthless token and with all his tricks managed to destroy the company in a very short time. Maybe he is one of those fanatics who, like Kwon, enjoy watching companies fail, and maybe they take even greater pleasure in destroying their own company.

When I first saw that man, I thought it was some kind of joke - because to me he seemed quite incapable of keeping an ordinary chicken coop, let alone a crypto exchange.

[kryptqnick]

I think a common feature is that both can scam people and both can fail as business models. The difference is that ponzi scheme is meant to be a scam, it's designed as a scam and can't function without relying on the majority losing. Crypto exchanges, on the other hand, can be managed in ways where everyone wins: people get the services they want, exchanges get profits from the fees, traders can profit from making well-timed buy/sell orders. So it's not a scam per se, unless you'd agree that banks are a scam, for example, as they also don't really have the money of their customers and can both go genuinely bankrupt and scam their customers.

[BRINIRHA]

This is the thing that bugs me the most about the crypto world. They do not even know what a ponzi is and they still like to talk about what type of scam something could be. Centralized exchanges are just like banks, they take people’s money and let them do whatever they want with it, while still keeping the ownership. You want to trade with it? Sure go ahead, you want to stake it, sure go ahead, you want to loan it out? Sure, just do that.

But all the time the money stays in the exchange, same as banks. The difference is that when banks collapse, government bails them out, but when an exchange collapses, there is nobody to bail them out and they just bankrupt right away.

because actually I am still new to crypto investment. and a few weeks ago more of my assets were kept in the Exchange. because at first I did not understand the big risk I faced when I put my assets on the stock exchange. But then after hearing the news about FTX. so I learned the lesson that as long as my assets are still on the exchange, it's the same as me still not having my own coin. so finally now I have moved my assets into a private wallet with a private key that only I know. I would be really surprised if such a big exchange and its CEO have done such a terrible thing with the customer's money in that exchange. it's a terrible thing but definitely a lesson for many people like me who are new to crypto investing.

[348Judah]

As far as am concerned, those ponzi schemes have advanced into crypto projects as well eince they discover that people want cryptocurrency and that's the central attraction for them to invest their money with, so i count them altogether as same thing since anything that can take away someone's entire asset without refund overnight has thesame identity to that of ponzi regardless of whatever the coin investment it maybe.

[NotATether]

To be clear, it's only if you see an APR or yield on the exchange. If you see any of those, then it means that the exchange has HYIP-like tendencies, only they are more glorified, feel entitled to your documents, and fall in slow motion.

[vv181]

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

Tracing back to when Bitcoin started, trust is the thing a has little mere significance. As the saying goes, "don't trust, verify". The problem with the current condition is that those centralized entities lack firm and stable regulation. Some say, regulation will make cryptocurrencies worse, but, in fact, that kind of centralized entity and the people who are also using them will surely get the benefit of it.

The point is, people have a choice whether they want to trust somebody or not, and people are still able to use crypto in a sovereign way. Trust is the complete opposite of the spirit of what Bitcoin has started, so if some people still want to rely on third parties, a tightly regulated ecosystem will ensure the trust of the users.

[Bitstar_coin]

Yeah, never trust an exchange to keep your money safe because you don't know what will suddenly happen that will result in an unexpected loss of funds.
I wouldn't call them a Ponzi platform even if it is beginning to look like it with all the recurring cases we are experiencing. Exchanges were supposed to be an easy means for people to buy and sell crypto, making it more accessible to as many people as possible, but some of them have lost track of that and aim to bite more than they could chew.

[uneng]

We can't generalize. A crypto exchange has nothing to do with ponzi schemes. Scammers CEOs pumping and dumping native tokens from their own exchanges with customers' funds have. What must be clear is that an exchange can exist and launch their own token in a fair, legit and sustainable way, respecting and protecting customers and investors. Only time will tell who has been operating their platforms in an honest way, but it's unlikely every exchanges are going to fall, because it's unlikely all of them adopted the same criminal practices. Let's see the next episodes of crypto universe...

[albon]

We may find exchange platforms in the future like a Ponzi scheme. There is a difference between them, but the two share that they are not safe places for investors and traders. How many exchange platforms have been hacked so far? How many exchanges have gone bankrupt early? How many victims of exchange platforms and Ponzi scheme? In fact, after what happened to the FTX platform, it will be difficult for any investor to put his wealth in any exchange platform, which is indeed a great risk. I see that exchange platforms are not the right place to hold our tokens on it, It is only for P2P and some simple trading.

[coupable]

To put your savings in your own wallet and secure it with well-known means of protection, including not to share your private keys and passwords with anyone. Any damage that occurs to it will be your responsibility alone, and we cannot blame anyone.
As for decentralized platforms, they may be more secure than centralized platforms, but this does not mean that they are the best way. I remember the CryptoBridge platform when it was launched it was a decentralized platform and then suddenly they started asking for identity documents from users before the platform stopped and users' money was lost. There are many other examples that confirm that it cannot be trusted one hundred percent.

You need to have good knowledge in order to be able to protect your investments from fraudsters. But for this you need to spend a lot of time to thoroughly understand all aspects, it is difficult and therefore most people study these important issues superficially. In the end, it's about your money, and so it should be one of the main things you need to worry about.

It is really difficult for the majority of users, especially since they are accustomed to giving importance to their personal data and important data on the Internet, imagining that nothing bad can happen to them on the pretext that nothing happened to them in the past. For users who are used to taking precautions in general on the Internet, they will find it much easier. The issue goes beyond how to deal with platforms and wallets to knowing basic storage and protection methods, in addition to how to deal with problems .

[Cookdata]

........

A Ponzi scheme (/ˈpɒnzi/, Italian: [ˈpontsi]) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.

Source: https://en.wikipedia.org/wiki/Ponzi_scheme

Just for more engagement for other people to know what SBF has done to investors and traders, that is the meaning of a Ponzi scheme. SBF has done more harm than good and this will hunt other centralized exchanges, the trust is no longer there and not just that, people have learned to move their trading to decentralized exchanges. The entire capitalist who invested in FTX, the whale are all mostly at losses and the ones who have sold back to stablecoin has been unable to withdraw and the chance of getting their money back is slim or at least, it will take months or years, it is high time we all avoid these centralized exchanges

[justdimin]

What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.

In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.

Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.

I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.

[Gayong88]

What causes the exchange to crash? that there is a lack of transparency with FTX owners and management. So, it may take time for many users to trust other cryptocurrency exchanges. This can be seen when you compare one cryptocurrency exchange to another by asking their security system if possible.

Joining a Ponzi scheme to get rich quicker then they should know that it is a scam and will fail at one point in time. It's like gambling, don't use your real funds in such platforms. Also society should be aware of such things.

Luckily, there are still people building cryptocurrency exchanges in a transparent and customer-friendly manner.

[Minor Miner]

What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.

In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.

Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.

I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.

Yes, anything can happen in this market but I also agree with you that binance crash is very unlikely. I also used a lot of exchanges but in the end I ended up with binance, I almost don't trust any 2nd exchange even with FTX and coinbase, and I am not a victim of FTX recently. I also want to emphasize like you, everything has risks and binance is no exception, although binance is considered the safest by far, the future is unpredictable. But I was prepared mentally as well as willing to take risks because when I entered this market, I determined that investing in cryptocurrencies was risky.

[Plaguedeath]

Yes, anything can happen in this market but I also agree with you that binance crash is very unlikely. I also used a lot of exchanges but in the end I ended up with binance, I almost don't trust any 2nd exchange even with FTX and coinbase, and I am not a victim of FTX recently. I also want to emphasize like you, everything has risks and binance is no exception, although binance is considered the safest by far, the future is unpredictable. But I was prepared mentally as well as willing to take risks because when I entered this market, I determined that investing in cryptocurrencies was risky.

Back in few years ago, Mt.Gox was the biggest exchange since 2013 and anyone really trust it. No one expect Mt.Gox because it's the most biggest and popular centralized exchange, just like you thought on Binance. But on 2014 everyone was wrong, Mt.Gox collapse and they can't refund to every holders until right now, even though there's progress that they're promise to pay the Bitcoin in this year.

Sooner or later Binance will collapse, no one can predict the future and you're not working in Binance, so you're not know the actual of Binance's financial.

[serjent05]

What happened on FTX exchange isn't a Ponzi scheme, it is a mismanagement of funds and a possible fraud from the management.  It is obvious that the anti-crypto media will take this opportunity to throw stones at the cryptocurrency industry.  So we just need time for the event to cool down.

As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.




[1] https://www.google.com/search?q=ponzi+scheme+meaning&rlz=

[Minor Miner]

Yes, anything can happen in this market but I also agree with you that binance crash is very unlikely. I also used a lot of exchanges but in the end I ended up with binance, I almost don't trust any 2nd exchange even with FTX and coinbase, and I am not a victim of FTX recently. I also want to emphasize like you, everything has risks and binance is no exception, although binance is considered the safest by far, the future is unpredictable. But I was prepared mentally as well as willing to take risks because when I entered this market, I determined that investing in cryptocurrencies was risky.

Back in few years ago, Mt.Gox was the biggest exchange since 2013 and anyone really trust it. No one expect Mt.Gox because it's the most biggest and popular centralized exchange, just like you thought on Binance. But on 2014 everyone was wrong, Mt.Gox collapse and they can't refund to every holders until right now, even though there's progress that they're promise to pay the Bitcoin in this year.

Sooner or later Binance will collapse, no one can predict the future and you're not working in Binance, so you're not know the actual of Binance's financial.

Whether binance will crash or not, let time tell, you cannot look at Mt.gox or FTX to confirm binance will crash. I don't know do you use binance? but what they are doing is definitely very different from the rest. They are all different but I will agree with you that no one knows what will happen in the future, even bitcoin.

I'm not defending them just because I'm using their services, but I'm prepared and aware of the risks I face if something goes wrong. Except for the holders, the rest of the market, I bet they'll be back to using CEX soon, we can't separate them. The ugly truth, but there are ways to avoid relying too much on them as well as ways to protect assets, so it is not necessary to eliminate all just because of 1 or 2 destructive components.

[Natalim]

I am not surprise that some media now started to report crypto exchange as Ponzi and comparing it that way.

Too bad but I understand their sentiment yet they are wrong putting crypto exchanges in general. Because what happened to FTX is only for the FTX team. Social media is really trying to use their platform to help spread misinformation and this is not good.

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

More exchanges turn into scams, which seems alarming and we know people will consider this as a reason to stay away from crypto. Yeah, trust is somehow broken and doubts arise about which exchanges to trust as Binance also involve in the issue.

[el kaka22]

Realizing that there are a lot of exchanges that take your money, and let you "trade" while they keep your money in their safe, and you do not have to do that at all, do not have to let them have your money, would be the first step. Binance and all other places take your money, and then they tell you that it would be smarter if you could end up with just trading there without withdrawing.

Because, if ALL people withdraw ALL of their money, all exchanges would fall. This is why DeFi was such a huge deal, because if you put it in your own wallet, and trade via some DEX that would mean that your money is at all times in your wallet, and never given to anyone else.

[Ucy]

Reminds me how regulated banks were ran in the past before they had serious issues... You give them money, they squander it and governments bail them out. Interestingly, it's one of the reasons Bitcoin was invented but they are trying to abuse it the way the banks were abused. To minimize or stop the abuse people must use Bitcoin/crypto the way it was meant to be used... in  p2p decentralized manner. You should have nothing to do with exchanges that are run like banks, they are completely contrary to the ideals of Bitcoin.

There are couple of interesting decentralized or self-custody exchanges around. With them you have control over your fund and they are more suitable for long-term investments, or for buying dips.

[buwaytress]

There are couple of interesting decentralized or self-custody exchanges around. With them you have control over your fund and they are more suitable for long-term investments, or for buying dips.

Just make sure you do your full due diligence. Not all DEXs are built the same. In fact, the majority of DEXs out there, those you'd find on "top dex" lists and on search engines, anyway, aren't as safe as you might think.

Self-custody is really the only thing they have different from regular exchanges. But manipulation, lack of transparency, censorship, centralised and closed development, haphazard security, etc. Same same.

[tygeade]

Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.

I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.

That’s true, it would be very unlikely that we would see Binance going down. I feel like they would be doing security beer than anyone and they wouldn't go with these child’s play stuff that other exchanges which think they are super smart and does in order to bankrupt. FTX did some silly stuff obviously thinking they can get away with it, and obviously they couldn't and that’s why they dropped to this low levels, otherwise they wouldn't.

Binance is too smart and they wouldn't let such things happen and that’s why I believe they would never be turning into a scam. However, OP is right about the ponzi situation, exchanges do not have as much money as they claim they do, and that’s a problem.

[South Park]

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

I will go with "IT IS WHAT IT IS".

Exchanges was not the real "idea" behind satoshi's vision. It is actually exactly opposite what he thought and launched the blockchain. It's like Satoshi created apples for us but some thinker later created their own oranges and covered with the Apple skins.

These days what you see is that skin is peeling off and reality is getting exposed. Imagine if there was only bitcoin and the only way to trade it was via sending them from one wallet to other wallet with trust factor being the mutual understanding. I think it would have been the best case scenario.

May be the price would have been little but loss wouldnt have been in billions.

True, the dream of Satoshi was that people would do P2P among themselves, but people are simply too used to the current system in which centralized entities tells them what to do and what not to do, so they simply create the same kind of institutions in a market that is supposed to be decentralized, and even decentralized exchanges are centralized and are only decentralized in name, so with this in mind it is not difficult to see why we have seen the fall of so many exchanges over the years as they are simply not the right fit for this ecosystem.

[iv4n]

What happened on FTX exchange isn't a Ponzi scheme, it is a mismanagement of funds and a possible fraud from the management.  It is obvious that the anti-crypto media will take this opportunity to throw stones at the cryptocurrency industry.  So we just need time for the event to cool down.

As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.




[1] https://www.google.com/search?q=ponzi+scheme+meaning&rlz=

I never traded on FTX and I don't have any coins/tokens from their internal projects. I guess that makes FTX a Ponzi, they have/had their own investment funds/projects, and when people started withdrawing the tower collapsed. Of course, the management is responsible for this... we can only guess, but I think they wanted too much and their greediness eat them.

It's been a long time since we had a similar situation, but these things happen and can happen to any centralized service. Decentralized exchanges and services are much better, but people still need to learn about them.

[Gyfts]

What happened on FTX exchange isn't a Ponzi scheme, it is a mismanagement of funds and a possible fraud from the management.  It is obvious that the anti-crypto media will take this opportunity to throw stones at the cryptocurrency industry.  So we just need time for the event to cool down.

As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.

I agree that a Ponzi is predicated on an enterprise that doesn't exist, but in a way, FTX was riding on a house of cards that were one tap from collapsing, and they knew it too. When FTX had billions loaned to Alameda, it wasn't until recently that I learned those funds were then funneled back to Bankman-Fried to the tune of a billion USD.

Without a doubt fraud, misleading investors, and to me, nothing more credible than a Ponzi because the underlying enterprise were based on lies.

[Mauser]

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

It's true that this a terrible situation for crypto currencies, but to be honest with you the trust was broken a long time ago. It's nothing new that there are considerable security risks at an exchange and we shouldn't leave our coins there for a long time. It's fine to trade, just make sure to withdraw as soon as you are done with trading. The problem with cryptos is that it became very popular last year and attracted a lot of new people. And with anything in life there are good and there are bad people. Saying that every exchange is a scam is wrong, its not a ponzi scheme either. We do need exchanges to trade our alt coins and some people even make a living out of it. It's the same with a stock exchange, people are also not calling it scams. It takes a bad person with criminal intent in a position of power to defraud customers and investors. Better oversight would be one thing for the future to prevent it happening again.

[Leviathan.007]

There are many other platforms and exchanges where you can see similar things there and they usually ask you to hold your money there for taking profits or they will suggest you refer your friend for taking advantage of them and that's pretty much similar to a Ponzi scheme scam. I see not any difference there and in my idea, they're still doing the same thing but the only difference you can find here is they won't scam small amounts and run away. For any exchange and platform, it is important to ask people to hold their money there and trust them.

[rat03gopoh]

FTX isn't ponzi, it's a clear abuse of responsibility. It's clear that SBF manages that user's money to various services to improve its own company finances. The difference? none, both are the same as removing trust in any related and similar entities. And the worst thing is the opinion of new people that bitcoin is considered an integral part of this crime.

[Crypto Legend]

Various kinds of fraud in cryptocurrencies are increasingly diverse and it seems it will be difficult to prevent, this is because it is too free to create a coin or exchanges project, in 2014 when I was new to cryptocurrencies I followed a lot of cloud mining and hyip programs and most of them were scam projects.

[Smartvirus]

There is huge difference between a Ponzi scheme and exchanges or should I say, what played out in FTX. The issue with FTX came off because of a guy that tried to play smart. Trying to use the system for which he was central authority to enrich himself. It's what local banks do being a centralized system and as such, it makes no difference with a centralized exchange.

The mistake or issue here is, trying to make profit off people's money because, it was stored on your platform. Some unauthorised or unconsented loan and he lost it. They forgot the lose part of an investment or perhaps there is a side to the story we've not been told. Ponzi operates on a pyramid scheme, exchanges are nothing of that sort.

[serjent05]

FTX isn't ponzi, it's a clear abuse of responsibility. It's clear that SBF manages that user's money to various services to improve its own company finances. The difference? none, both are the same as removing trust in any related and similar entities. And the worst thing is the opinion of new people that bitcoin is considered an integral part of this crime.

Definitely, FTX isn't a ponzi scam since they don't function like that one.  FTX is an exchange where people do trades, they released a token but they don't promised anyone of a huge income if they get invested on it.  Investors are also not involved in sponsoring new recruits where they will get huge amounts of money as a referral bonus.  Unlike Ponzi Scheme FTX is operating as a normal exchange platform.  It is that SBF messed up and misappropriate the funds of FTX clients.

[jrrsparkles]

I am not surprise that some media now started to report crypto exchange as Ponzi and comparing it that way. This is because of the FTX crash making customers fund disappearing to $1 billion. The exact amount is still not clear because different people are giving different amount to what is lose and  Sam Bankman-Fried saying he will write his own story about the issue but the point is he "secretly" transferred money to a trading company Alameda Research. This is IMO a black weekend for people in cryptocurrency because just when people start to look for investment in cryptocurrency now we have FTX top officials secretly embezzling customer money to secretly invest in trading to make personal gain.



Where now is the trust? This is blackmail to crypto industry. There was ICO scam and others happened to cryptocurrency.


We try to running off from Ponzi and we begin to have exchange crash not because of hack but someone trusted with customer money is taking it away secretly. . This is not good to hear. It is sad to read about it and I know you are not happy about Sam Bankman-Fried action that is putting cryptocurrency investors into economic challenge in this hard knock inflation season.

Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?

It is just the exaggeration of what really happened to convince people that crypto is bad, did cryptocurrencies made loss to the people no. Its just because of someone's fault or mishandling of funds or scam as you said but don't blame the market just punish the individual who did that is supposed to be the right thing to do.

Exchanges had more trust than it should be so atleast this is some kind of warning bell for all the holders using cryptocurrencies.

[G_Besar]

Various kinds of fraud in cryptocurrencies are increasingly diverse and it seems it will be difficult to prevent, this is because it is too free to create a coin or exchanges project, in 2014 when I was new to cryptocurrencies I followed a lot of cloud mining and hyip programs and most of them were scam projects.

When you know more about cloud mining and hyip programs that you've seen in the past, it will actually help you a lot in terms of avoiding them or similar programs in the future. This means you have absolutely nothing to lose when you first find out about such things in the past because it will protect yourself from repeated scams on the same program. So actually you can prevent it when you already know it first.

[Renampun]

Exchanges being insolvent due to whatever reason isn't anything new — that's one of the reasons why the quote "not your keys, not your coins" has been repeatedly said thousands of times already.

this is also what really confuses many people, many traders are trapped in CEX not because they don't know that "not your key, not your coin" but because CEX provides tempting things with promos, cheap fees and so on, which makes people (including me) forgot about the dangers of keeping funds in CEX.

But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.

what you said is very true, the CEO of FTX uses users' money to invest in other projects and this is definitely a scam (looks like a Ponzi scheme).

[2stout]

Sadly, there is not much difference between Ponzi platforms and some cryptocurrency exchanges; as a result, even the "good" exchanges will be lumped in and viewed negatively.  History just keeps repeating itself as people didn't learn from mt.gox and now ftx; there will be another soon.

[serjent05]

Sadly, there is not much difference between Ponzi platforms and some cryptocurrency exchanges; as a result, even the "good" exchanges will be lumped in and viewed negatively.  History just keeps repeating itself as people didn't learn from mt.gox and now ftx; there will be another soon.

There is always this kind if incident every year, exchanges shutting down, getting bankrupt, and exchanges CEO misappropriating funds.  Well an exchange will never get bankrupt if the management is so keen on its responsibility.  Though I beg to disagree that Ponzi platforms and cryptocurrency exchanges are the same.  These two are very different because an exchange never promises us wealth but only serves that our crypto funds is safe in their hands.

Various kinds of fraud in cryptocurrencies are increasingly diverse and it seems it will be difficult to prevent, this is because it is too free to create a coin or exchanges project, in 2014 when I was new to cryptocurrencies I followed a lot of cloud mining and hyip programs and most of them were scam projects.

When you know more about cloud mining and hyip programs that you've seen in the past, it will actually help you a lot in terms of avoiding them or similar programs in the future. This means you have absolutely nothing to lose when you first find out about such things in the past because it will protect yourself from repeated scams on the same program. So actually you can prevent it when you already know it first.

Indeed and you will know that Ponzi platforms are very different from a cryptocurrency exchange.  Your given example are platforms that uses Ponzi scheme system and if compared to crypto exchanges, we will find out that they are not the same.

[kro55]

What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.

In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.

Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.

I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.

Currently, binance cannot collapse but the future is unpredictable. An exchange collapsed not only due to hacking but also for many reasons, such as FTX they were greedy and violated business ethics when taking customers' money to use for their own purposes, leading to collapse. Binance has stood for so many years, I'm not afraid of them crashing due to an attack, but what I'm afraid is that CZ will become like SBF with insatiable greed or misuse of money leading to binance's bankruptcy.
Another thing is that binance is dominating the market almost completely, which is very easily labeled by the government as manipulation or monopoly in the business. Binance is facing a lot of challenges.

[Inwestour]

It's not blackmail but apparently a straight-up scam--and it very much reminds me of the Mt. Gox disaster, where there was essentially one individual in charge of a lot of people's money, and that individual was inept at finance at best.  This guy SBF looks like a complete tool to me, and it's amazing that he was treated so well in the media prior to this given that he made a statement to the effect that he's in the Ponzi business.  I mean, Jesus.

FTX's extensive advertising probably pulled in a shitload of money from people who otherwise would never have invested in crypto and who were too ignorant to know not to keep their crypto on a platform like FTX.  That's why this thing is much worse than Mt. Gox, which affected investors who were into bitcoin in the early days.  This brand of shenanigans attracts the attention of regulators like nothing else, and I can't imagine the outcome is going to be good for any of us.

This will definitely entail a series of negative consequences for cryptocurrencies. It is possible that people who were involved into FTX by advertising might not be aware of all the risks of keeping their investments on the exchange, and this is a big problem, because now everyone who has lost their investments will spread negativity about cryptocurrencies, although this probably already happened. Many funds that have invested in FTX have also lost a lot of money and this will affect their decision to further invest, and their opinion about cryptocurrencies.

What happened to FTX is terrible, and it shows that the story of Mt. Gox did not teach people anything, they still continue to keap their coins on the exchanges. As much as I would not like this to happen again, but most likely it can happen again in the future and people must somehow understand that storing their coins on the exchange is very dangerous, any exchange can be the next one, no one is safe from this. Those who communicate on the forum are more likely to learn about these risks.

[Xampeuu]

What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.

In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.

Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.

I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.

Currently, binance cannot collapse but the future is unpredictable. An exchange collapsed not only due to hacking but also for many reasons, such as FTX they were greedy and violated business ethics when taking customers' money to use for their own purposes, leading to collapse. Binance has stood for so many years, I'm not afraid of them crashing due to an attack, but what I'm afraid is that CZ will become like SBF with insatiable greed or misuse of money leading to binance's bankruptcy.
Another thing is that binance is dominating the market almost completely, which is very easily labeled by the government as manipulation or monopoly in the business. Binance is facing a lot of challenges.

what needs to be underlined at this time is not to leave too much of our money on the exchange, use it as needed and return it to be stored in the long term in a personal wallet. binance is indeed the best exchange to date, but they have been hacked even though they are also responsible, moreover FTX was destroyed due to personal problems, which is actually not appropriate to do, and if it's like that then it's the consumers who are harmed. so we have to be smart to respond to the crypto world which has many challenges

[$anounimus$]

Since cryptocurrencies are so volatile, scammers take advantage of this situation to increase their profit margins, and this causes many people to lose money. There are certain shady practices to be aware of when using crypto exchanges. The player (person) often uses it for gambling or quick trading, but others use it for other unethical and illegal activities to the detriment of all users.

There are many things, where the best crypto exchange is not the ideal place to invest your money or trade. You need to know the market and you shouldn't just trust promises or reviews. The most important thing to do when trying out a new exchange is to learn as much about it as possible. Plus, it's always important to have a backup plan in case something happens that you can't immediately identify or fix.

[yhiaali3]

Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of ​​Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.

[BigBos]

Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of ​​Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.

I agree, what is meant by satoshi is irrelevant if there are third parties because they can play as intermediaries as banks play. In my view Centralize Exchange looks like a representation of a bank in the crypto world.
By now we should have started to switch to using DEX for more secure storage.

The domino effects provided by FTX have left such a deep scar on the market and investors, it will be difficult to rebuild trust, I think it will take a long time to fix it.
It's not impossible that Binance will suffer the same fate as FTX someday.

"What's worse right now is that some media are judging crypto like a Ponzi scheme" It's not uncommon for news like this, but in situations like this it can have a huge impact.

[coupable]

Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of ​​Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.

There are also central platforms that can turn into spam. These platforms are managed by development teams to ensure the necessary updates, and they charge a commission for these services, which is automatically deducted from each transfer to go to the addresses of the work team. The problem may arise if a hacker managed to infiltrate the details of the code on which the platform was created and tamper with the settings.
Peer-to-peer transactions remain the most secure and should not be done by any middleman.

[Pejoh Asu]

To do the research, of course, it takes special time and technique, some exchanges that are a scam and make me very losing money is livecoin, it is difficult to know whether the exchanges that we normally use will be a scam or not, because to distinguish it is very difficult and everything looks won't become Scam or Ponzi platforms.

[South Park]

Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of ​​Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.

I agree, what is meant by satoshi is irrelevant if there are third parties because they can play as intermediaries as banks play. In my view Centralize Exchange looks like a representation of a bank in the crypto world.
By now we should have started to switch to using DEX for more secure storage.

The domino effects provided by FTX have left such a deep scar on the market and investors, it will be difficult to rebuild trust, I think it will take a long time to fix it.
It's not impossible that Binance will suffer the same fate as FTX someday.

"What's worse right now is that some media are judging crypto like a Ponzi scheme" It's not uncommon for news like this, but in situations like this it can have a huge impact.

The media wants clicks and views and the way to get this is to exaggerate the news, and some media outlets exaggerate to the point they distort the news and some may argue they are lying, however we cannot change this and we can only deal with the aftermath of the effects brought by the disaster of FTX, and I hope people learn from this experience, using centralized exchanges as a way to store your coins long term is simply a terrible idea and under no circumstances it should ever be done.

[virasisog]

To do the research, of course, it takes special time and technique, some exchanges that are a scam and make me very losing money is livecoin, it is difficult to know whether the exchanges that we normally use will be a scam or not because to distinguish it is very difficult and everything looks won't become Scam or Ponzi platforms.

There are highly reputable exchanges so we should be aware of the possibility of being scammed if we try out using new exchanges that are just trying to build up a good reputation. Ponzi and scam platforms will do everything to attract more users and keep them by providing promising promotions but if we stick to long-time reputable casinos, we'll never have the fear of losing our funds. One more thing, we shouldn't store our funds in exchanges to get rid of the risk of losing them.

[Lubang Bawah]

Cryptocurrencies has become a very promising thing to get a lot of money in a short time, such as the 30 -year -old FTX owner but already has billions of dollars, and many scam cases from cryptocurrencies that never enter the law so that we have to always have to be vigilant, because the case Like FTX can be repeated at any time, it's better to save assets in private wallets.

[Wong Goblog]

Every day there is always bad news about cryptocurrencies, if we often see the news of Bloomberg TV then cryptocurrencies like always wrong and I pay attention to many TVs that are anti with cryptocurrencies, maybe because there is no cryptocurrencies advertisement on TV so they continue to attack cryptocurrencies, even every week always presented SCAM victims, Ponzi or other bad things from Cryptocurrencies.