After FTX collapse, some call for a return to decentralized roots

[blockman]

Not just 4 years ago but more than that and it was also taken into notice about these dexes. I still remember some of them that became popular but then didn't contain the competition because it's tough. Most of the old Dexes were already forgotten but they were made and used more than 4 years ago contradicting what you've said that they were in existence since 4 years ago. Well, their growth is true. Many of them even if just made a couple of years ago, they've become popular and that's the roots of decentralization that are being completed and continued. But then talking about FTX, there have been news that they're on recovery and looking forward to their comeback but asking people in here about if they'll still use them, I doubt it that many will obliged.

I think we already have over 10 billion dollars in all of DEX total as well, so it is not really a weird situation to be in. Obviously we are not going to see that in trading volume just yet, but we are seeing it in LP which is all that matters to me, it means that it can cover so much very easily. We are going to see it grow, we are not going to see CEX going away, that will stay as well.

Remember that crypto market is a growing one, so we could see CEX and DEX grow together thanks to market growing as well, some people will move from CEX to DEX whereas CEX's will find new people to join instead of them. This is how the market will continue to grow, it will allow us to do a lot better and surely that is a bright future for all crypto investors.

I hope to see that day come when more people have more confidence in the DEXes than the centralized exchanges. Yes, that time is inevitable as the market grows, we'll get to see them for sure and that's why there's also a vast growth with them but then, too many things needed to get some fix on them.

It's a long journey for the dexes to finally be preferred by most customers and replace the usage of CEX. There's so much comfortability that CEXes offer and that's why we're also in there. No doubt that they're easy and comfortable no matter what are the fees they make because they're not far from each other. While the DEX, the news that's on them isn't good because we often see news about being hacked and exploited by some of their codes.

DEXes operate on a decentralized, trustless network, which makes them less vulnerable to attacks and less susceptible to censorship. While there have been reports of hacking and code exploits in the past, many DEXes have taken steps to improve their security protocols and minimize these risks. In fact, some argue that the transparency and accountability inherent in the decentralized model actually make DEXes more secure than their centralized counterparts.

They may have been less susceptible to censorship but I think you need to review the attacks that's made towards them by those that have abused their smart contracts and such. They're known for it although not excluding that cexes as well.

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[s.tanishka]

It's not just about trust. It's a matter of userfriendly. It is easier to understand on CEX exchanges, it is easier to buy your first cryptocurrency. Many people have a hard time understanding metamask. A decentralized exchange is generally very difficult for them. That's why they choose CEX

[Sethrey]

You make a good point about user-friendliness being a key factor in why many people choose to use CEX over DEX. While it is true that DEXs can sometimes be more complex and difficult to use for those who are new to cryptocurrency trading, it is important to recognize that they offer a number of important benefits that CEXs do not.

One of the main advantages of DEXs is that they are often more secure and transparent than CEXs. Because they operate on a decentralized network, there is no single point of failure that can be targeted by hackers or other bad actors. Additionally, DEXs often do not require users to provide personal information or undergo KYC/AML procedures, which can help to protect their privacy.

[s.tanishka]

Absolutely not! On the DEX we are also at risk, and quite a lot of risk. The only difference is that your cryptocurrency is stored in your wallets and with your private keys. This just means that nobody can block it for you, of course, if the blockchain itself doesn't have such a possibility (it's perfectly clear what tokens I'm talking about here). And on CEX, the exchange itself can block your account. Otherwise, there are a lot of options for fraud, theft, and deception on DEX. So, do not mislead people and tell them that DEX is completely safe and not vulnerable to hacking.

[Sethrey]

You bring up a valid point that using a decentralized exchange (DEX) does not necessarily mean that one is completely safe from risks such as fraud, theft, and deception. While it is true that DEXes offer some advantages, such as more control over one's private keys, it is important to acknowledge that there are still risks involved.

[JayTrain]

Decentralization has always been a core philosophy of cryptocurrency, and the recent security breaches at major exchanges have underscored the importance of maintaining control over one's own assets. While using a decentralized blockchain and privacy coin like Utopia P2P can offer added security, it's important for individuals to take responsibility for their own wallets and educate themselves on best practices for securing their cryptocurrency. This includes using strong passwords, two-factor authentication, and physical hardware wallets, as well as staying vigilant against potential scams and phishing attacks. Ultimately, the success of cryptocurrency will depend on a balance between decentralized control and user responsibility.

[jossiel]

You bring up a valid point that using a decentralized exchange (DEX) does not necessarily mean that one is completely safe from risks such as fraud, theft, and deception. While it is true that DEXes offer some advantages, such as more control over one's private keys, it is important to acknowledge that there are still risks involved.

Yes.

There will still be some risks that dexes bear and we can't avoid these risks but then, we have to be aware that these incidents that has happened with the centralized exchanges is also possible to any that we're using.

Even if they're the most reliable exchange at all, there's still the possibility that these risks will also be with them.

[s.tanishka]

I would like to add that there are always risks until your money is not your pocket and no one knows about it but you. We are now seeing American banks collapse and you can lose your money in the bank. So keep your cryptocurrency on a ledger and don't tell anyone about it.

[Sethrey]

Yes.

There will still be some risks that dexes bear and we can't avoid these risks but then, we have to be aware that these incidents that has happened with the centralized exchanges is also possible to any that we're using.

Even if they're the most reliable exchange at all, there's still the possibility that these risks will also be with them.

Of course, DEXes are not without their own risks. The lack of regulation and the potential for liquidity issues can create a higher risk environment for trading. However, with the right precautions and by following best practices for security and risk management, users can reduce their exposure to these risks.

[s.tanishka]

In any case, all the major DEX sites will eventually be as regulated as the CEX sites.

[Sethrey]

Okay, let's imagine the next case: there is a decentralized exchange, for example, it's based on its own blockchain and has a closed source. How can be such an exchange blocked?

[s.tanishka]

Okay, let's imagine the next case: there is a decentralized exchange, for example, it's based on its own blockchain and has a closed source. How can be such an exchange blocked?

It is not necessary to block the exchange. It is enough to own stabelcoins. USDT and USDC can block your Stablecoins. It turns out that it will be enough to pressure the issuers of stablcoins and DEX will be left without liquid stablcoins.
The second reason is the low popularity of the exchange and the resulting lack of liquidity. If there is no liquidity on the exchange, then no one can use it.

[jacafbiz]

I know people do call out all these centralized exchanges because of their shortcoming but people forget that they are the ones that carried this space so far, the contribution of exchanges like Bitfinex, Coinbase, Binance and Bittrex that just declared bankruptcy. There is no Decentralised exchange that can replace CEX for now, how do you think the fiat enters this space? We just need to hold them to high standard and continue to call them out if we suspect any red flags.

[timoshani]

Absolutely not! On the DEX we are also at risk, and quite a lot of risk. The only difference is that your cryptocurrency is stored in your wallets and with your private keys. This just means that nobody can block it for you, of course, if the blockchain itself doesn't have such a possibility (it's perfectly clear what tokens I'm talking about here). And on CEX, the exchange itself can block your account. Otherwise, there are a lot of options for fraud, theft, and deception on DEX. So, do not mislead people and tell them that DEX is completely safe and not vulnerable to hacking.

There is an opportunity to hack it. Even MM and then not so long ago I burst. And with regard to centralization, this simply contradicts the basics that Satoshi laid. And on DEX, I am of the opinion that this is a follower of ForkDelta and ForkDelta2. I had a lot of fail transactions there...

[Ojima-ojo]

It's not just about trust. It's a matter of user-friendly. It is easier to understand CEX exchanges, it is easier to buy your first cryptocurrency. Many people have a hard time understanding metamask. A decentralized exchange is generally very difficult for them. That's why they choose CEX

The truth is that there is no way that a centralized exchange will be the best choice for purchasing your coins even though assets trading is the major role of exchange but while we are at that we must put a lot of dots on the net to know if we are ready for the risk associated with centralized exchange such as KYC and non-custodial of the fund since the exchange have total control of your coin with them and what you are given is just several balance without any form of recovering security details.


So before we chose any third-party custody, we must first know the extent to which we can recover our money in case of a hack or exit scam like that of FTX.

[Rampagoe004]

This is a risk that will happen to CEX. I have analyzed this a long time ago. CEX offers convenience and security that is done by professionals but if CEX becomes a scam it will be a big loss for the people who have entrusted their assets.
Maybe DEX is more secure but it is also risky for those who don't know about digital security. On DEX, hackers will try to hack assets by exploiting aspects of human psychology and this also has a high risk for people to lose their assets due to hacking.

[Sethrey]

I know people do call out all these centralized exchanges because of their shortcoming but people forget that they are the ones that carried this space so far, the contribution of exchanges like Bitfinex, Coinbase, Binance and Bittrex that just declared bankruptcy. There is no Decentralised exchange that can replace CEX for now, how do you think the fiat enters this space? We just need to hold them to high standard and continue to call them out if we suspect any red flags.

As the industry continues to mature, it's possible that decentralized exchanges will improve in functionality and become more viable alternatives to centralized exchanges. It's important to monitor advancements in the DEX space and support projects that prioritize user control, privacy, and security.

[Lagduf]

Plans to restart the bankrupt cryptocurrency exchange FTX have been confirmed in a new staffing and compensation report filed with the United States Bankruptcy Court for the District of Delaware on Monday.

The document shows that acting CEO John J. Ray III spent hours engaging in several activities to devise a revival plan for the troubled crypto exchange in April.

https://cryptopotato.com/ftx-ceo-suggests-restart-plans-for-the-exchange-in-new-compensation-report/


FTX will come back again in the future with new CEO and team. There have been so many plans to revive this dead exchange site. I remember that if SBF was not manipulating this exchange site for his own advantage and im sure that ftx has become as big as binance.

There have been bunch of users actively traded in FTX. I hope that i will be reviving again.

[dlightag]

The FTX collapse last year has made a lot of people remove mind trust on them, because of the mistake the company made, which causes a lot of damage, and lost of funds, which is also affect me as well during the time, I was liquidated in future trading position, before I could release source of dipping market, was too late, Having said that the trust of FTX  collapse has more long way to go enable to build back the trust to the company.

[abel1337]

The FTX collapse last year has made a lot of people remove mind trust on them, because of the mistake the company made, which causes a lot of damage, and lost of funds, which is also affect me as well during the time, I was liquidated in future trading position, before I could release source of dipping market, was too late, Having said that the trust of FTX  collapse has more long way to go enable to build back the trust to the company.

It's true that people lose a lot of trust especially on trusting centralized exchanges. Though this put CEX into providing more quality services to users as people now are aware of the potential risk of centralized exchange. They need to improve to gain back the trust of the people that awaken their though about the risk they are into. As much as we can, we shouldn't store our money on CEX because of the history of it and the potential that it will happen again. Majority of people who become a victim of the FTX collapse won't be using it anymore and this is why the recovery of FTX is just a long shot chance.