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

[iamverybusyperson]

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?

[TastyChillySauce00]

FTX's case has been triggering so many things to happen with crypto and here's some things that already happened.

- People are losing trust over cex
- Triggering government to crypto by giving more strict regulation

People already forced to go back again to the decentralization but in don't even think utopia can take the advantage from this incident that already happened with crypto. It seems like that if decentralized thing like GMX and MVX may take the advantage over the collapse from FTX.
It can be seen from the TVL that owned by these decentralized futures trade were also increasing a lot since people were moving away their money from cex out to their wallet caused by the trust issue with cex.

[cabron]

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.

[el kaka22]

I have always said that decentralization is with the blockchain and not how you use the coin. I mean bitocin itself cannot be centralized, but what you do with it can be. This time maybe we ought to change that too? I mean not saying that it would be better or worse, but it does look like it is going to end up with something that is hurting the market at this moment if we keep this up.

So, it is better to move to Decentralized Exchanges for trading for example, or any other p2p method for fiat needs. Because at the end of the day it is not looking like we are talking about something that is profitable in the long run if we keep using centralized companies.

[o48o]

Well in principle you should't keep your coins in cex, and if you are tech-savvy enough, obviously self custody is the best solution. And everytone should try to learn it if they haven't yet.
But i wouldn't recommend self custody to my mom for example who barely understands how to work with a different browser. I am pretty sure that he would lose the private key and the backup if she used cold wallet. And if she used desktop wallet i couldn't guarantee she wouldn't get hacked at some point.

[goaldigger]

There’s a lot of hacking incidents with exchanges already even before the collapse of FTX so by that time people should already know where to put their crypto, and as advised before storing money on any exchanges are not advisable. This is just a repeat of those incidents and again, another reminder not to hold any crypto for long term in exchanges. The report of big profit with Trezor is a good indication that many already learn their lesson, just choose the best hard wallet and decentralized exchange, you can be more secured there.

[l8orre]

without further comment:

https://atomicdex.io/en/desktop/

...

[AmoreJaz]

Well in principle you should't keep your coins in cex, and if you are tech-savvy enough, obviously self custody is the best solution. And everytone should try to learn it if they haven't yet.
But i wouldn't recommend self custody to my mom for example who barely understands how to work with a different browser. I am pretty sure that he would lose the private key and the backup if she used cold wallet. And if she used desktop wallet i couldn't guarantee she wouldn't get hacked at some point.

well, you have a good point on this matter. it depends on the person who is holding the funds. not many people are trusting their capability of holding their keys, this is why some people still store their funds in CEXs. but for those regular crypto users/traders, we need to remind ourselves not to store funds in CEXs for long time. better secure it in our own wallets.

[wheelz1200]

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?

What do people NOT understand?  Exchanges are just that..exchanges.  they are not meant to be banks or personal wallets.  You are trusting someone else with your keys that is an irreversible transaction away from wiping you out.  I honestly don't get it, why would you keep your money on some 3rd party non insured site?  Even if it's "reputable", we all see how that has gone.  People just need to continue to learn the hard way.

[Fundamentals Of]

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.

What is actually more complicated about having a hardware wallet for example compared to maintaining an account in a centralized exchange?

Don't mention about passwords. That's not even complicated. But even if it is indeed complicated to some, we all do that. It is not something that is unique or an additional exclusive feature by hardware wallets. Even centralized exchanges have passwords.

In reality, centralized exchanges are way more complicated than hardware wallets. You need to fill out forms to open an account, verify the email, submit KYC information including pictures and videos, monitor daily for updates about the status of the exchange, regularly check your funds, review activities for possible suspicious ones, etc. With a hardware wallet, you only need to set it up and then send your funds. You can forget about it right after.

[Jawhead999]

I wouldn't want to make a research about Crypto and Utopia since it's time consuming to know if they're actually 100% decentralized or just a semi or less decentralized and claim to be fully decentralized. We already have Bitcoin which is the most popular coin and has the most holders, why we need to choose Crypton which is still new and only listed on small exchange. I can use Bitcoin, trade in Bisq, and use Bitcoin mixer with Tor network, I will get same privacy level.

If there's a person who want instant way to achieve 100% anonymous, just use Monero.

[wxa7115]

I have always said that decentralization is with the blockchain and not how you use the coin. I mean bitocin itself cannot be centralized, but what you do with it can be. This time maybe we ought to change that too? I mean not saying that it would be better or worse, but it does look like it is going to end up with something that is hurting the market at this moment if we keep this up.

So, it is better to move to Decentralized Exchanges for trading for example, or any other p2p method for fiat needs. Because at the end of the day it is not looking like we are talking about something that is profitable in the long run if we keep using centralized companies.

Any form of centralization will either be attacked by those which oppose bitcoin or vulnerabilities will begin to appear on their own.

In the case of exchanges we are seeing both scenarios manifesting themselves, so we need decentralization more than ever, however many people will never accept this and change their ways until they are directly affected by it, and now that they are being affected they are finally willing to change, however even if there is a massive increase in the number of people holding their coins, once a new bull market comes a bunch of newbies will appear which will not care about this and the cycle will begin again.

[Wexnident]

Idk what Utopiap2p is but the FTX issue simply showcased one problem, don't store your assets on exchanges. This doesn't necessarily mean you wouldn't use them anymore for their intended purpose, as an exchange, but rather use them only for that specific one and not anything more. Ofc using decentralized options would naturally be better.

With a hardware wallet, you only need to set it up and then send your funds. You can forget about it right after.

It's not the complicatedness but rather the "setting it up" process I guess? Not that I'm saying it's hard, anyone can study up on it and learn it really, but some people just choose convenience over anything else I suppose. The process in Centralized exchanges is something done in general for most account creation purposes so most people are used to it hence using it for exchanges doesn't really seem that complicated anymore.

In general, I'm just saying people are just THAT lazy, either in setting it up even if they knew how or in learning how to set it up. Especially if you consider how most people wouldn't really move till they get hit themselves.

[gunhell16]

FTX's case has been triggering so many things to happen with crypto and here's some things that already happened.

- People are losing trust over cex
- Triggering government to crypto by giving more strict regulation

People already forced to go back again to the decentralization but in don't even think utopia can take the advantage from this incident that already happened with crypto. It seems like that if decentralized thing like GMX and MVX may take the advantage over the collapse from FTX.
It can be seen from the TVL that owned by these decentralized futures trade were also increasing a lot since people were moving away their money from cex out to their wallet caused by the trust issue with cex.

Not all cryptocurrency communities want to go back to decentralized, because not all centralized exchanges have issues that the exchange platform dude has been hacked or malfunctioned.

As I am one of the community here in this industry, I still have my trust in other centralized exchanges such as Binance, Houbi, Kucoin, and others. Then what happened to FTX does not mean that it will happen to all centralized exchanges, it is not like that.

[cryptoaddictchie]

No wonder why Binance said they will release merkle data for full transparency. Indeed decentralized has been ignored due to conveniency of exchanges and thats really shocking for some who only viewed it as part of crypto space. I think many will now take a deeper look on it and considered using it more than centralized exchanges. For sure a lot has been caught up with FTX tragedy.

[crwth]

This is the best time to have that power with your coins by holding the keys and ensuring that you have them in your pocket. It shows how important it is to have your wallet and your coins directly in there. This is ideal if the exchange makes themselves DEX or the projects that plan DEX. I think futures with DEX is an excellent thing to check.

[jrrsparkles]

The actual problem is the users because they are using exchanges apart from what it is supposed to be for example to keep their cryptocurrencies for long period. Maintaining a crypto wallet isn't that complicated but for someone who is having millions worth of crypto definitely needs more responsibility for the security of their funds but it doesn't mean they have to seek help from the centralized service.

[BIT-BENDER]

How do you mix centralization with Crypto-currency. I am yet to see a through crypto-currency enthusiast that upholds decentralization and very sensitive to security complain about lose that’s not due to wrong investment.

The so called big centralized exchange are completely greedy business men, yes some has asset worth billions and very influential but if you can take the teaching we get from here you would avoid or limit getting on Centralized exchanges. FTX isn’t the first and they won’t close the curtain on such tragedy.

[l8orre]

This is the best time to have that power with your coins by holding the keys and ensuring that you have them in your pocket. It shows how important it is to have your wallet and your coins directly in there. This is ideal if the exchange makes themselves DEX or the projects that plan DEX. I think futures with DEX is an excellent thing to check.

DEX has been around for several years now, only most crypto holders are too bamboozled by the Blinkenlichten:

https://atomicdex.io/en/desktop/

[Jackl87]

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.”

i don't know but in my opinion the crypto space as a whole is way more decentralized now then a few years ago. Just look at the whole situation with the exchanges back then and now. Back in 2017 and 2018 i still remember that new projects had a very hard time to even get their token to be tradeable because back then there were no real Dexes like we have them now with Uniswap or Pancakeswap. They had to pay very high listing fees in order to get listed even on small exchanges and big exchanges like Binance or Bitfinex or whatever vere extremely expensive. Nowadays at least everyone can get their token list themself.