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

[vv181]

It is expected that scammers try to spoil the FTX bankruptcy processes. They take advantage of legitimate information for their own scam purpose. Certainly a deceitful attempt to mislead any cryptocurrency users, and it is not specifically tied to FTX users, since I believe they got the email from any leaked database. So many cryptocurrency users who have ever been got their email leaked are likely to receive the mail.

As I have been said, they partnered up with PwC and Kroll, which means any sender from those emails is very likely a legitimate mail. For example, I received an email from a sender with the domain of @restructuring.pwc.co.uk and @kroll.com.

The fact that people could still do this is beyond understandable. Anyone who got scammed and then got scammed about being scammed should reconsider their life choices to begin with. I am not here to victim shame anyone, they lost their money and then they lost money about a thing regarding they lost money. But that doesn't change the fact that we are talking about something incredibly obvious and nobody should have fallen for that.

I understand the FTX situation, you may not see that coming and that's fully understandable, but if people send you fake mails and you go for that and lose money again, then I am sorry but you are going to end up getting scammed more in the future as well, that's just how it is for sure.

Agreed, but that's that. Someone fell for that.

Personally, I do get scam email that relates to the FTX bankruptcy processes, but only if I browse around on spam-marked mail. I use Gmail mail services and they are pretty good to filter any spam and scam mail. I do believe any popular mail provider/service also has a good enough mail filter. One essential thing why scammers still do this kind of technique or scheme is because it works. So, they simply got them motivations to do the scam.

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[s.tanishka]

It is expected that scammers try to spoil the FTX bankruptcy processes. They take advantage of legitimate information for their own scam purpose. Certainly a deceitful attempt to mislead any cryptocurrency users, and it is not specifically tied to FTX users, since I believe they got the email from any leaked database. So many cryptocurrency users who have ever been got their email leaked are likely to receive the mail.

As I have been said, they partnered up with PwC and Kroll, which means any sender from those emails is very likely a legitimate mail. For example, I received an email from a sender with the domain of @restructuring.pwc.co.uk and @kroll.com.

The fact that people could still do this is beyond understandable. Anyone who got scammed and then got scammed about being scammed should reconsider their life choices to begin with. I am not here to victim shame anyone, they lost their money and then they lost money about a thing regarding they lost money. But that doesn't change the fact that we are talking about something incredibly obvious and nobody should have fallen for that.

I understand the FTX situation, you may not see that coming and that's fully understandable, but if people send you fake mails and you go for that and lose money again, then I am sorry but you are going to end up getting scammed more in the future as well, that's just how it is for sure.

Agreed, but that's that. Someone fell for that.

Personally, I do get scam email that relates to the FTX bankruptcy processes, but only if I browse around on spam-marked mail. I use Gmail mail services and they are pretty good to filter any spam and scam mail. I do believe any popular mail provider/service also has a good enough mail filter. One essential thing why scammers still do this kind of technique or scheme is because it works. So, they simply got them motivations to do the scam.

Therefore, it is extremely important to take care of your digital hygiene. Cryptocurrency is stolen from many people on a daily basis, and it happens all the time. People still haven't learned to be responsible with their digital security.

[Marvinnous]

Decentralized roots... what would that be? Most of us still use centralized exchanges for all sorts of reasons. Higher volumes, more markets, and options...

I use decentralized exchange only as I care of my personal information. I don't want to share my passport with everyone and link all the transactions to my name. That's insane doing that in today's world and situation.

[s.tanishka]

Recently there was news that the US authorities are pushing for DeFi to license banks. So maybe soon they will force DEX to get a license, otherwise they will just block access to the sites.

[Magic-Money]

Since after FTX collapse cryptocurrency market has not been recovering and that is the root of Bear market which takes many people unaware of the crypto market not being recovery for a long term now, but have to accept the fact and believe that crypto market we recovered by entry Bull Run, which is the time to buy more coin's and have the patience of holding for target price of sell.

[Yaunfitda]

Since after FTX collapse cryptocurrency market has not been recovering and that is the root of Bear market which takes many people unaware of the crypto market not being recovery for a long term now, but have to accept the fact and believe that crypto market we recovered by entry Bull Run, which is the time to buy more coin's and have the patience of holding for target price of sell.

We have recovered already, seen a good bounce since the FTX collapse, but we are still far from the bull run that we are all looking at because we are still the state of bear market. Meaning the price will definitely going down for some time and only after the bitcoin block halving that we will have that bull run that we all been waiting for.

As for the roots of decentralization, it has been ever since though. Even before the collapse of FTX, everyone is calling for a decentralized exchange or at least us traders should go down that route. However, there are also a lot of drawback of decentralization that majority of us will continue to used CEX in my opinion.

[o48o]

Decentralized roots... what would that be? Most of us still use centralized exchanges for all sorts of reasons. Higher volumes, more markets, and options...

I use decentralized exchange only as I care of my personal information. I don't want to share my passport with everyone and link all the transactions to my name. That's insane doing that in today's world and situation.

But you do share your passport/id with the service that acts as a fiat ramp when you cash out. You can move your tokens in DeFi, sure. But ultimately you will leave a transaction trail that you need to explain to CEX if the amount of money you are cashing out is big enough, or if there's something suspicious with the tx history, so hopefully you have everything in order so you can explain the origin and the route you were moving your money.

This is of course assuming that you will some day want to cash out.

[s.tanishka]

Traders will never go to trade on the DEX exchange because there is simply not enough functionality there. All these talks are only led by hodlers. If you are just a coin hodler, it doesn't make much difference to you where to buy or sell them. If you make transactions every day or trade on the futures market, you need CEX.

[yazher]

Since after FTX collapse cryptocurrency market has not been recovering and that is the root of Bear market which takes many people unaware of the crypto market not being recovery for a long term now, but have to accept the fact and believe that crypto market we recovered by entry Bull Run, which is the time to buy more coin's and have the patience of holding for target price of sell.

Bearish markets always happened in the crypto industry and it won't be any problem for veteran investors because they know eventually the market will recover in the future after all of these things are done. if the drama about FTX hadn't happened investors would just blindly invest their money in some centralized coins which is not a good idea at all. As we can see it happened so fast and while we were asleep, the price was cashed suddenly, and without even knowing along with the decline of the price our capital is also decreasing dramatically and doesn't have any chance to recover.

[Dave1]

Traders will never go to trade on the DEX exchange because there is simply not enough functionality there. All these talks are only led by hodlers. If you are just a coin hodler, it doesn't make much difference to you where to buy or sell them. If you make transactions every day or trade on the futures market, you need CEX.

Or simply put there is no liquidity in DEX, so that is one cons against using them and that is one reason why we are still in CEX despite the many so issues like hacking and losing funds and scams.

And as much as we love DEX in the beginning, I don't think that we can simply go and switch from DEX-CEX, it's not going to happen overnight. And I don't think it will happen in the next 10 years or so.

[s.tanishka]

Traders will never go to trade on the DEX exchange because there is simply not enough functionality there. All these talks are only led by hodlers. If you are just a coin hodler, it doesn't make much difference to you where to buy or sell them. If you make transactions every day or trade on the futures market, you need CEX.

Or simply put there is no liquidity in DEX, so that is one cons against using them and that is one reason why we are still in CEX despite the many so issues like hacking and losing funds and scams.

And as much as we love DEX in the beginning, I don't think that we can simply go and switch from DEX-CEX, it's not going to happen overnight. And I don't think it will happen in the next 10 years or so.

I think it could happen much sooner than 10 years from now. But it will be manipulative. It will be DEX which is actually under government control and they will give people the supposed appearance that they are decentralized, but in fact everything will be under control.

[Abiky]

Or simply put there is no liquidity in DEX, so that is one cons against using them and that is one reason why we are still in CEX despite the many so issues like hacking and losing funds and scams.

And as much as we love DEX in the beginning, I don't think that we can simply go and switch from DEX-CEX, it's not going to happen overnight. And I don't think it will happen in the next 10 years or so.

People won't switch to DEXs because of the low liquidity, steeper learning curve, and higher fees. They're fine with CEXs just the way they are. Don't forget that convenience goes above all else. This little "FTX incident" won't affect CEXs whatsoever. Exchanges will move on with other tactics/strategies to keep attracting customers (like how they've been showing proof of reserves after the FTX collapse).

For people to lose trust in CEXs, something catastrophic must happen (like Coinbase, Binance, and Kraken collapsing all at once). But I don't see this happening anytime soon. I'm fine with DEXs being an alternative than a replacement, as long as they work as intended. With true decentralization, crypto will become unstoppable. Who knows if CEXs will live alongside DEXs for generations? Just my thoughts

[Godday]

Honestly I like DEX or CEX. I will just keep a lot of my money in DEX and I will do a little transaction on CEX. So I think the two can coexist because they create a mutually beneficial symbiosis. Of course it will be a little complicated if you make transactions from DEX (in my opinion) because I see that CEX is simpler and more efficient in carrying out exchanges and trades.

[Marvinnous]

Honestly I like DEX or CEX. I will just keep a lot of my money in DEX and I will do a little transaction on CEX. So I think the two can coexist because they create a mutually beneficial symbiosis. Of course it will be a little complicated if you make transactions from DEX (in my opinion) because I see that CEX is simpler and more efficient in carrying out exchanges and trades.

I never faced any problems or issues moving money from or to DEX. Everything is as simple as possible. And what is the most important for me, that's all fully anonymous and no one can track your operations.

[ultrloa]

Or simply put there is no liquidity in DEX, so that is one cons against using them and that is one reason why we are still in CEX despite the many so issues like hacking and losing funds and scams.

And as much as we love DEX in the beginning, I don't think that we can simply go and switch from DEX-CEX, it's not going to happen overnight. And I don't think it will happen in the next 10 years or so.

People won't switch to DEXs because of the low liquidity, steeper learning curve, and higher fees. They're fine with CEXs just the way they are. Don't forget that convenience goes above all else. This little "FTX incident" won't affect CEXs whatsoever. Exchanges will move on with other tactics/strategies to keep attracting customers (like how they've been showing proof of reserves after the FTX collapse).

Many think that after FTX incident many people would shift to use Dex but it doesn't translate into reality. Maybe some other take a rest to use Cex because they got traumatize for the experience they get from that incident but once they discover the liquity and volume is so low with this type of exchange they will shift back to use reputable CEX.  
There's a lot to learn from what happen on FTX and we need to use that experience to take proper decisions.

[Blitzboy]

Or simply put there is no liquidity in DEX, so that is one cons against using them and that is one reason why we are still in CEX despite the many so issues like hacking and losing funds and scams.

And as much as we love DEX in the beginning, I don't think that we can simply go and switch from DEX-CEX, it's not going to happen overnight. And I don't think it will happen in the next 10 years or so.

People won't switch to DEXs because of the low liquidity, steeper learning curve, and higher fees. They're fine with CEXs just the way they are. Don't forget that convenience goes above all else. This little "FTX incident" won't affect CEXs whatsoever. Exchanges will move on with other tactics/strategies to keep attracting customers (like how they've been showing proof of reserves after the FTX collapse).

For people to lose trust in CEXs, something catastrophic must happen (like Coinbase, Binance, and Kraken collapsing all at once). But I don't see this happening anytime soon. I'm fine with DEXs being an alternative than a replacement, as long as they work as intended. With true decentralization, crypto will become unstoppable. Who knows if CEXs will live alongside DEXs for generations? Just my thoughts

Low liquidity? The chicken-and-egg prblem. More users equals more money. How hard is learning? That's fine with me for now. Since technology is improving exponentially, we will soon have easy-to-use platforms. And costs? Not to mention CEXs' exorbitant exit costs.

You are right: ease is most important. But it fits differently for everyone. A problem with one FTX shouldnt be used to assess all DEXs. Balance between regulated and decentralized items that work properly is needed. Consider it crypto's yin and yang: centralization and decentralization. It works; It works that way

Its too easy to declare CEXs wont be trusted unless something horrible happens. Remember that opinions change like the wind. Im joking, but in a truly decentralized world, the sky's the limit. DEXs and CEXs living together? Wait and see. However, lets not limit ourselves to one or the other. My friend, we need balance. Always remember that everything has a reason, even if its not obvious.

[Abiky]

Low liquidity? The chicken-and-egg prblem. More users equals more money. How hard is learning? That's fine with me for now. Since technology is improving exponentially, we will soon have easy-to-use platforms. And costs? Not to mention CEXs' exorbitant exit costs.

You are right: ease is most important. But it fits differently for everyone. A problem with one FTX shouldnt be used to assess all DEXs. Balance between regulated and decentralized items that work properly is needed. Consider it crypto's yin and yang: centralization and decentralization. It works; It works that way

Its too easy to declare CEXs wont be trusted unless something horrible happens. Remember that opinions change like the wind. Im joking, but in a truly decentralized world, the sky's the limit. DEXs and CEXs living together? Wait and see. However, lets not limit ourselves to one or the other. My friend, we need balance. Always remember that everything has a reason, even if its not obvious.

You do have a point there, mate. Life is all about balance. We can't just discriminate against all CEXs because one turned out to be a "bad egg". Centralization will always be there whenever we like it or not. We just have to prevent it from taking over the whole industry. A divide between the worlds of centralization and decentralization is necessary for crypto to proper.

I believe DEXs will improve over time to a point where they will become as good as CEXs in terms of performance and cost-efficiency. Neither will replace the other as they're completely different things. It's like comparing apples vs oranges. What CEXs will do is provide proof of reserves to gain the confidence of mainstream investors and traders alike. With good regulations, a collapse will have little-to-no impact over the crypto market. Who knows if this will make crypto bigger and stronger in the long run? Just my thoughts

[s.tanishka]

Have you heard anything about parallel finance? Maybe their new platform is one of the ways to decentralization. I think that if every project would create something similar, we would quickly become a decentralized crypto world

[Marvinnous]

Many think that after FTX incident many people would shift to use Dex but it doesn't translate into reality. Maybe some other take a rest to use Cex because they got traumatize for the experience they get from that incident but once they discover the liquity and volume is so low with this type of exchange they will shift back to use reputable CEX.  
There's a lot to learn from what happen on FTX and we need to use that experience to take proper decisions.

And how does it coincide with the need of privacy? How many no KYC centralized exchanges there are? Too many countries put taxes on crypto operations and I don't want to share it with govt. My parallel income should remain unknown to anyone. So my choice is definitely no KYC dex.

[DeathAngel]

Being decentralised is what makes bitcoin so much better than the vast majority of everything else. The main problem with FTX & platforms like Gox before it though is user reliance on the trustworthiness of third party custodians. Never, ever rely on anybody else, any third party platform to store your crypto for you. Self custody is the only way, look after your own money, it’s not that hard.