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

[s.tanishka]

Personally, I would say FTX collapse is a blessing in disguise because if not for that, the subject of regulation might perhaps not have surfaced till date. I think regulations is what has been missing all this years hence the reason why some exchanges could just overnight announced that they are bankrupt. Taking the traditional financial institution for example where banks are under regulations from the various central banks, it's hard to hear issue of a bank collapsing with users money because there is a certain amount of deposit to be made to this bodies to ensure customer funds are safe and I think government bodies have realized this hence the reason for many countries now implementing regulations of crypto which is a welcome idea. Although crypto is meant to be decentralized but we cant ignore the importance of cex in ensuring noobs are able to buy crypto because not many have good knowledge of Dex. Am a bit surprised to see that some exchanges are reluctant to be regulated for reasons best known to them. However some exchanges have shown commitments towards been regulated which is a good sign that will give users peace of mind in keeping their assets on such platforms.

Crypto regulations come with both advantages and disadvantages, but given recent events, I believe they are a necessary step. I commend platforms such as Bitget, Binance etc  for their commitment to transparency by publicly disclosing their Proof of Reserves. The former, in particular, offers an additional layer of security through its protection funds, which are currently valued at over $300 million.

But there were also doubts about whether these funds were actually held by them as collateral. In fact, we can never know 100% how things are inside the exchange. Therefore it is better to keep the money in your wallet.

[Abiky]

I'm sure that's not the case. All people have already forgotten about the FTX crash and continue to keep their funds on other CEX. If we look at their reports, there are more than 50 billion dollars stored on binance. Long before FTX there was MtGOX.

Exactly. The FTX collapse is history. People forgot all about it, and moved on with their lives. CEXs will still be around with us for quite some time, since they're the main "gateways" from both the crypto and Fiat worlds. Governments can keep track of illegal actvities involving crypto thanks to CEXs. With DEXs and privacy coins, it's almost impossible to do that. These solutions are widely unpopular due to their steep learning curve. Not everyone is willing to learn and take responsibility of securing crypto funds.

CEXs are easy to use, cheap, and fast. It's this reason why they're still afloat. I've read rumors of an "FTX comeback", so things might turn in the right direction soon. Who knows if the defunct exchange turns into a hybrid platform (centralized + decentralized) in the future?