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

[Bitstar_coin]

People had already reacted to what happened, Trezor reports 300% revenue increase after FTX fiasco. This is a good result after a catastrophic warning. It's for the best before the exchanges which act like banks freeze your assets.

Some revolutionaries like Snowden also said 'I told you so' which he emphasized that crypto is heading in the wrong direction when people are storing coins on a centralized/3rd party.

Utopia P2P has to prove more.

I think it was a wake-up call for most crypto investors who have ignore all the warnings from like minded crypto enthusiast and continue storing their crypto on exchange instead of their personal wallet. After the incidence, i guess we can see the response base of the high percentage recorded by Trezor after ftx collapse.
Maybe people never believe a big exchange with huge capital can dissolve so quickly but now people are beginning to understand that nothing is impossible. We should always work towards protecting our funds.

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[Sayeds56]

Neither we should trust DEX smart contracts to store them for too long time. As at least when we trust CEXes, they get sued after messing up, You can't sue a faulty hacked smart contract. And what comes to praising decentralization in general, it almost always has centralized elements. Like wrapped btc that just got depegged supposedly because of Almada Research minted it a lot.

DEX also cannot be fully trusted, because some DEXs are managed by scammers who will easily take our assets. As you said, no one can sue Smart Contracts if they commit fraud and take the assets of the users, they will just disappear. In contrast to CEX which will be demanded by its users directly. The main security is actually in its own use. they must be aware that crypto is very risky, and must be really good at keeping their own assets safe. A personal wallet is a safe place that can be managed alone.

You are absolutely right, CEX or DEx, none of them is free from risk of hacking, either DEX or non-custodial wallets are not 100% secure, so many incidents have been reported in media about hacking of investors' money was stolen by DEFIs as well online wallets were hacked. Big exchanges like Binance and Coinbase have reliable security system as well as funds are protected by insurance cover.

[FanEagle]

If we could, that would be great but we can't. The market is too far off gone to centralized and there is no returning back. There could be a few more bankruptcies that could cause it to get a little bit of shift towards decentralization and that's it. If we could have done anything then we would have done it but we couldn't and it is too late now. I personally do not mind, it is not a huge deal for me and I believe that we would be doing fine even if we keep going with centralized.

Because, if you trust the right places and if you end up protecting your funds at the right places then you should be doing fine as well and there is no need to worry about anything else. That's the key point here, you need to protect it the way you always should and there is no worry after that.

[SquallLeonhart]

https://www.axios.com/2022/11/29/sam-bankman-fried-100000-ftx-cftc-regulation
"Exclusive: Sam Bankman-Fried says he's down to $100,000
Sam Bankman-Fried had $100,000 left in his bank account last time he checked. In an interview, the former FTX CEO pointed to both personal failures and regulatory gaps to help explain the implosion of his company."

I mean that is still quite good considering he should be in the minus right now. That is the thing about real rich people, when they bankrupt, they do not bankrupt like you and me, they could take out loans and such for all the assets he owns. He might get all of his assets seized which would be his trouble, even with that he could just use his fame to make more money on speeches here and there.

What I believe right now is the fact that SBF will never be poor, even if he made bad bets with your money, he will be doing richer than 90%+ of the world easily, and that's a shame, someone who lost others money should be avoiding all of theirs in a jail.

[Schneidera]

As questions swirl about how much cryptocurrencies will be worth in the wake of the spectacular collapse of the crypto exchange FTX and other major platforms, a key question has emerged: Who will keep your crypto safe?

In response, some in the crypto community are calling for a return to its decentralized roots.

Among the rallying cries of this latent movement: “Not your keys, not your coins.”

In other words: Trust only yourself.

But doing so requires individuals to maintain their own cryptocurrency wallets through a more complicated — if safer — process that involves generating complex passwords and sometimes buying physical hardware to keep track of crypto, as opposed to entrusting it to an exchange.

"A company like FTX was supposed to hold your assets, but they ended up lending them out," Tracy Wang, deputy managing editor at the crypto news site CoinDesk, told NBC News.

That concept is what undergirds the traditional monetary system and seems to go against the fundamental philosophy of cryptocurrency.

"This is like taking power back and being in charge of your own money," Wang said of decentralization.

So does that mean that Utopia P2P had chosen the right way from the very beginning, being based on its own decentralized blockchain and having own Crypton privacy coin? As for the 5 years of existence it didn't face any data leakage or scamming scandal. Or what else would you offer to pay attention to?

The topic of returning to decentralization is not a recent one. It's just that the FTT incident made people panic even more. This is not a simple case, it will cause a domino effect. In fact, many people use bitcoin trading as a tool to make money, continuously trade, and use the leverage and contracts of centralized exchanges. This process has lost itself, they know that their assets are safe in decentralized wallets and hardware wallets. In fact, sometimes I do this myself, and what I think in my head is inconsistent with what I do in my hands.

[wxa7115]

https://www.axios.com/2022/11/29/sam-bankman-fried-100000-ftx-cftc-regulation
"Exclusive: Sam Bankman-Fried says he's down to $100,000
Sam Bankman-Fried had $100,000 left in his bank account last time he checked. In an interview, the former FTX CEO pointed to both personal failures and regulatory gaps to help explain the implosion of his company."

I mean that is still quite good considering he should be in the minus right now. That is the thing about real rich people, when they bankrupt, they do not bankrupt like you and me, they could take out loans and such for all the assets he owns. He might get all of his assets seized which would be his trouble, even with that he could just use his fame to make more money on speeches here and there.

What I believe right now is the fact that SBF will never be poor, even if he made bad bets with your money, he will be doing richer than 90%+ of the world easily, and that's a shame, someone who lost others money should be avoiding all of theirs in a jail.

Besides even if that is what he claims he has we also know that many rich people keep most of their money in hard assets like real estate or luxury goods like jewelry, art, expensive clothes and other items, so when a regular person says they are broke they mean it literally, while a rich person means it figuratively as their net worth can still be in the millions of dollars.

The system is without a doubt geared in their favor, but since the rich can manipulate the laws as they want and pay the best lawyers as well then this is going to continue for the foreseeable future.

[Kadal Ijo]

Neither we should trust DEX smart contracts to store them for too long time. As at least when we trust CEXes, they get sued after messing up, You can't sue a faulty hacked smart contract. And what comes to praising decentralization in general, it almost always has centralized elements. Like wrapped btc that just got depegged supposedly because of Almada Research minted it a lot.

DEX also cannot be fully trusted, because some DEXs are managed by scammers who will easily take our assets. As you said, no one can sue Smart Contracts if they commit fraud and take the assets of the users, they will just disappear. In contrast to CEX which will be demanded by its users directly. The main security is actually in its own use. they must be aware that crypto is very risky, and must be really good at keeping their own assets safe. A personal wallet is a safe place that can be managed alone.

You are absolutely right, CEX or DEx, none of them is free from risk of hacking, either DEX or non-custodial wallets are not 100% secure, so many incidents have been reported in media about hacking of investors' money was stolen by DEFIs as well online wallets were hacked. Big exchanges like Binance and Coinbase have reliable security system as well as funds are protected by insurance cover.

Alert for transactions at dex, if we use metamask then we must be vigilant because bad things can happen, I once lost assets around $ 400 after the transaction in the pancakes, small things at that time because I forgot to lock or delete the account so that it was easy to get back.

[s.tanishka]

As questions swirl about how much cryptocurrencies will be worth in the wake of the spectacular collapse of the crypto exchange FTX and other major platforms, a key question has emerged: Who will keep your crypto safe?

In response, some in the crypto community are calling for a return to its decentralized roots.

Among the rallying cries of this latent movement: “Not your keys, not your coins.”

In other words: Trust only yourself.

But doing so requires individuals to maintain their own cryptocurrency wallets through a more complicated — if safer — process that involves generating complex passwords and sometimes buying physical hardware to keep track of crypto, as opposed to entrusting it to an exchange.

"A company like FTX was supposed to hold your assets, but they ended up lending them out," Tracy Wang, deputy managing editor at the crypto news site CoinDesk, told NBC News.

That concept is what undergirds the traditional monetary system and seems to go against the fundamental philosophy of cryptocurrency.

"This is like taking power back and being in charge of your own money," Wang said of decentralization.

So does that mean that Utopia P2P had chosen the right way from the very beginning, being based on its own decentralized blockchain and having own Crypton privacy coin? As for the 5 years of existence it didn't face any data leakage or scamming scandal. Or what else would you offer to pay attention to?

The topic of returning to decentralization is not a recent one. It's just that the FTT incident made people panic even more. This is not a simple case, it will cause a domino effect. In fact, many people use bitcoin trading as a tool to make money, continuously trade, and use the leverage and contracts of centralized exchanges. This process has lost itself, they know that their assets are safe in decentralized wallets and hardware wallets. In fact, sometimes I do this myself, and what I think in my head is inconsistent with what I do in my hands.

I agree that the topic of decentralization has been present for a while, but the FTX incident definitely brought it to the forefront of people's minds. It's true that many people use centralized exchanges for trading and making money, but it's important to remember the security benefits of using decentralized wallets and hardware wallets to store assets. It's a good reminder to align our actions with our beliefs.

[CryptoYar]

a key question has emerged: Who will keep your crypto safe?

We!
We should keep our funds on self custody wallets and protect them by keeping your private keys safe.

In response, some in the crypto community are calling for a return to its decentralized roots.

You/We can use centralized exchanges but only for trading purposes, other than that like keeping your/our funds in these centralized exchanges for any reason is wrong. Because you do not have the private keys of the wallets of those centralized exchanges management can freeze your funds at any time they want.

[Sethrey]

You/We can use centralized exchanges but only for trading purposes, other than that like keeping your/our funds in these centralized exchanges for any reason is wrong. Because you do not have the private keys of the wallets of those centralized exchanges management can freeze your funds at any time they want.

And can you tell me who the hell keeps its funds on the exchanges? There really are such dummies? Because I kept my currencies in the wallet from the very first day in crypto world and I never knew that someone does in another way.. Then they pay for their stupidity.

[Pierre 2]

I honestly never believed crypto exchanges are all safe. I was always doubtful about FTX, Binance or anything other. I remember using Poloniex, Hitbtc, Bittrex etc. I always preferred to buy coins and insta withdraw them to my Electrum address. Nowadays I felt bit safe especially after Binance. It can be beneficial to hold coins on centralized exchanges to generate extra money BUT using cold wallet will always be the safest method.

[maydna]

You/We can use centralized exchanges but only for trading purposes, other than that like keeping your/our funds in these centralized exchanges for any reason is wrong. Because you do not have the private keys of the wallets of those centralized exchanges management can freeze your funds at any time they want.

And can you tell me who the hell keeps its funds on the exchanges? There really are such dummies? Because I kept my currencies in the wallet from the very first day in crypto world and I never knew that someone does in another way.. Then they pay for their stupidity.

Of course, some traders keep their funds on the exchange and may use their funds to trade. But they only keep a small amount and the other funds in a separate wallet so they can control how they are used. We can't blame those who keep their funds in the exchange because they may have reasons for doing it. But hopefully, no one will get into trouble like yesterday's FTX case and immediately move the funds to their personal wallet.

[_BlackStar]

Of course, some traders keep their funds on the exchange and may use their funds to trade. But they only keep a small amount and the other funds in a separate wallet so they can control how they are used. We can't blame those who keep their funds in the exchange because they may have reasons for doing it. But hopefully, no one will get into trouble like yesterday's FTX case and immediately move the funds to their personal wallet.

In the case of traders, I don't think it's wrong to keep some of their funds on exchange, but vice versa, for investors having full custody of their assets is far more advisable. It is always not safe choice to trust third parties regarding assets ^{[especially centralized exchanges],} nor should you trust new wallet project that is not yet fully trustworthy and reputable and not many people are testing it.

The OP indirectly asked and might want to get review for the Utopia P2P wallet project and its goals, but I'm inclined to think that this is new project that still needs to be tested. I tend to think HW and other open source wallets are good choice, but I don't know much about Utopia P2P.

[sana54210]

I honestly never believed crypto exchanges are all safe. I was always doubtful about FTX, Binance or anything other. I remember using Poloniex, Hitbtc, Bittrex etc. I always preferred to buy coins and insta withdraw them to my Electrum address. Nowadays I felt bit safe especially after Binance. It can be beneficial to hold coins on centralized exchanges to generate extra money BUT using cold wallet will always be the safest method.

I know that it is not going to be something easy or something that will take time. But I know that it is going to be Binance that gets your attention and trust at the same time. I know it is not going to be that easy, but it is going to be quite possibly the easiest thing ever.

Yes, it is not easy as in it is going to be never going to rock, there will be news that will make you question the trust, but believe me, I have used Binance since the very first day it came out, following them even before the exchange, on their ICO period, and I can tell you that it has never given any user any trouble, no other place could say the same thing, it is just much better than everyone else.

[jaberwock]

I know that it is not going to be something easy or something that will take time. But I know that it is going to be Binance that gets your attention and trust at the same time. I know it is not going to be that easy, but it is going to be quite possibly the easiest thing ever.

Yes, it is not easy as in it is going to be never going to rock, there will be news that will make you question the trust, but believe me, I have used Binance since the very first day it came out, following them even before the exchange, on their ICO period, and I can tell you that it has never given any user any trouble, no other place could say the same thing, it is just much better than everyone else.

It only becomes hard if the platform is still new but that isn't the case about binance. It was an old exchange and is currently at the top, so no doubt that many people trust this exchange more than the other. We shouldn't only remove the fact that it was a centralized exchange so they have the rights to control our money and do some restrictions later on if ever they like.

If we are against with this possibilities then it will be better to withdraw all your coins right after you buy them on the exchange. Decentralized exchange on the other hand is the first thing that we have before all these CEXs. It's only sad that we will wait for something bad to happen before we realize the true value/importance of DEXs.

[GreatArkansas]

As questions swirl about how much cryptocurrencies will be worth in the wake of the spectacular collapse of the crypto exchange FTX and other major platforms, a key question has emerged: Who will keep your crypto safe?
(.....)

This is one of the many reasons why the trading volume started to increase on decentralized exchanges (DEXes). There are already also a lot of derivatives exchanges that are decentralized on the chain, you don't need to create an account or undergo any KYC process, you only need your wallet. If you are worried about fees on Ethereum, there are already a lot of layer 2 networks or alternatives to the Ethereum network in which the transaction fees are extremely cheap.

[maydna]

Of course, some traders keep their funds on the exchange and may use their funds to trade. But they only keep a small amount and the other funds in a separate wallet so they can control how they are used. We can't blame those who keep their funds in the exchange because they may have reasons for doing it. But hopefully, no one will get into trouble like yesterday's FTX case and immediately move the funds to their personal wallet.

In the case of traders, I don't think it's wrong to keep some of their funds on exchange, but vice versa, for investors having full custody of their assets is far more advisable. It is always not safe choice to trust third parties regarding assets ^{[especially centralized exchanges],} nor should you trust new wallet project that is not yet fully trustworthy and reputable and not many people are testing it.

The OP indirectly asked and might want to get review for the Utopia P2P wallet project and its goals, but I'm inclined to think that this is new project that still needs to be tested. I tend to think HW and other open source wallets are good choice, but I don't know much about Utopia P2P.

If the purpose of the traders is to trade on the exchange, it is certainly not wrong if they keep some of their funds on the exchange because they use the funds for day-to-day trading. But to keep most of the rest in the exchange would not be advisable because it would put us at risk. It's better to keep the funds in a separate wallet that we can keep an eye on and be fully responsible for.

I've heard of the Utopia P2P exchange project, but I've never tried it. I was too scared to try a new exchange and would only consider trying it after I could get ratings from other members.

[Cvetik56]

I've never kept my coins in any exchange anyway. I'm used to the OWNR wallet, but there are other wallets, including cold that are good for holding your coins. I just hope more people will learn how to control their savings after FTX collapse.

[royalfestus]

You/We can use centralized exchanges but only for trading purposes, other than that like keeping your/our funds in these centralized exchanges for any reason is wrong. Because you do not have the private keys of the wallets of those centralized exchanges management can freeze your funds at any time they want.

And can you tell me who the hell keeps its funds on the exchanges? There really are such dummies? Because I kept my currencies in the wallet from the very first day in crypto world and I never knew that someone does in another way.. Then they pay for their stupidity.

Of course, some traders keep their funds on the exchange and may use their funds to trade. But they only keep a small amount and the other funds in a separate wallet so they can control how they are used. We can't blame those who keep their funds in the exchange because they may have reasons for doing it. But hopefully, no one will get into trouble like yesterday's FTX case and immediately move the funds to their personal wallet.

As long as coin holders share custody with Centralised exchanges, the exchange's carelessness and insecurity will be everyone's problem, especially when the team behind the exchange is fraudulent as well. The ability to set up trade orders and P2P trade on decentralized exchanges could reduce the use of CEX, as there are currently no decentralized exchanges that offer such services. DEX needs to keep improving its use and trading since they seem more secure

[mdzahed134]

Who should provide our money safety? no one can't be ensure that, try to keep safe from our own responsibility, an example will never keep holding long term on the centralized exchanges, although lots of user's storing their assets on top exchanges where my assets isn't under my own control. If you need to trade/p2p then it’s fine to hold on exchanges. We can't 100% avoid CEX's because there are some limitation in DEX's.