After FTX collapse, some call for a return to decentralized roots - page 2.

iv4n

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Quote from: Marvinnous on September 28, 2023, 05:06:18 AM

Quote from: iv4n on September 21, 2023, 01:32:58 PM

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Anyway, I don't fully understand such a situation.. Like when I need an exchange, I put the exact sum to the exchange, do the operation and withdraw it back to my wallet or wherever I need it. Why should I leave something on the exchange?

Or you can use some coin swap service for quick swaps... I have the amount on the exchange that I use for trading, it's not big, and I don't wish to pay withdrawal fees after every trade I make. I am an amateur trader, and I don't trade with some big amounts so I don't feel some big need constant moving of my trading capital. What you are saying is fine and advisable for people who trade with big capital.

Marvinnous

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Quote from: iv4n on September 21, 2023, 01:32:58 PM

Well, I have some amount in some exchanges, like I have some amount in some casinos... we either trust the service or we don't. If if trust it we will always have some amount of coins that we keep in those services. Of course, we risk with that, but moving funds after every trade, after every gambling session, can be expensive. Of course, that should never be an "all-in" amount, it's the part we feel comfortable leaving there sitting and waiting for the next trade/gambling session. If you are not comfortable with that, you shouldn't use that service in the first place.

Anyway, I don't fully understand such a situation.. Like when I need an exchange, I put the exact sum to the exchange, do the operation and withdraw it back to my wallet or wherever I need it. Why should I leave something on the exchange?

Abiky

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Quote from: s.tanishka on September 23, 2023, 10:01:09 AM

There are tens of millions of such people. Understand that 90% of people are very stupid and they are just too lazy to create a wallet and store funds on the wallet, it is easier for them to store everything on the exchange. This is also the fear of responsibility. Many people just want to shift the responsibility to the exchanges, and in case they lose their funds, they will have someone to blame it on.

That's certainly true, mate. People don't want to take full responsibility (self-custody) of their hard-earned crypto funds. This is the reason why centralization is plaguing the industry. Without true believers of decentralization, our hopes of "beating banks" would be nothing but lost. There's nothing we can do about it, especially when Wall Street is already in the game.

One thing for sure is that FTX's collapse is nothing but a short setback for CEXs. These entities will only they get bigger and stronger over time. After all, they're the only way in which governments are able to efficiently collect taxes from you. Not only that, but CEXs give the government a "full scope" of where the crypto is flowing. Decentralized alternatives will be left behind in the dust, as people continue to put their trust in "the middleman". Who knows if DEXs ultimately get "outlawed" by the government? Just my thoughts Grin

asriloni

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Quote from: woez on September 21, 2023, 09:20:21 PM

Quote from: Abiky on September 21, 2023, 07:35:20 PM

Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

Exactly. Unfortunately, most people these days want what's most convenient to them. It's a hell of a lot easier to keep crypto in an exchange, than making your own wallet, loading it with crypto, and securing the private key and/or seed from "harms way". This carelessness, is what makes centralized exchanges (CEXs) the main target of hackers. What happened with FTX was not a hack, but rather a result of "mismanagement" from the team.

Either way, the collapse had a negative impact over crypto market prices for a short period of time. The damaged would've been "mitigated" if decentralized exchanges (DEXs) were the "driving forces" of the crypto market. Don't expect things to get better, especially when CEXs still "hold all of the cards". They will only become bigger and stronger than ever. At least, we know DEXs won't be going anywhere. As long as people have a choice, there should be nothing to worry about. Just my thoughts Grin

After the FTX incident which succeeded in destroying the crypto market and its impact is still felt today and in this case you are 100% right. In the world of digital currencies and everything digital, convenience often takes precedence over security.

I think rather than going to the trouble of setting up our own wallets, guarding private keys, and making sure they are protected from potential threats, it's better to migrate or abandon them and fraudsters are always looking for new places and centralized exchanges (CEX) and that's their main target.

At least FTX users will not be fully losing their money. FTX has been starting its liquidation for the available assets. The company will be starting to pay the creditors and anyone who have balance in the exchange site during the incident.
People are too lazy and i agreed but we can't fully blame them all. We know that if FTX incident was just happening in a short time.

Storing money in exchnge site is a complete mistake by the users, but the exchange site didn't also allow its users to withdraw at the time of incident.

In case if the fault was on the FTX team caused by they were mismanaging user's money which already owned by the exchange site. Not your key and not your money. I hope that i can get back my money soon after the liquidation process.

s.tanishka

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Quote from: Marvinnous on September 21, 2023, 03:41:43 AM

Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

I really wonder if there are still such people keeping money on exchanges, especially after all the latest news about coins delist, exchanges blocks, etc. My rule from the very beginning was to choose the trusted wallet and keep everything there.

There are tens of millions of such people. Understand that 90% of people are very stupid and they are just too lazy to create a wallet and store funds on the wallet, it is easier for them to store everything on the exchange. This is also the fear of responsibility. Many people just want to shift the responsibility to the exchanges, and in case they lose their funds, they will have someone to blame it on.

woez

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Quote from: Abiky on September 21, 2023, 07:35:20 PM

Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

Exactly. Unfortunately, most people these days want what's most convenient to them. It's a hell of a lot easier to keep crypto in an exchange, than making your own wallet, loading it with crypto, and securing the private key and/or seed from "harms way". This carelessness, is what makes centralized exchanges (CEXs) the main target of hackers. What happened with FTX was not a hack, but rather a result of "mismanagement" from the team.

Either way, the collapse had a negative impact over crypto market prices for a short period of time. The damaged would've been "mitigated" if decentralized exchanges (DEXs) were the "driving forces" of the crypto market. Don't expect things to get better, especially when CEXs still "hold all of the cards". They will only become bigger and stronger than ever. At least, we know DEXs won't be going anywhere. As long as people have a choice, there should be nothing to worry about. Just my thoughts Grin

After the FTX incident which succeeded in destroying the crypto market and its impact is still felt today and in this case you are 100% right. In the world of digital currencies and everything digital, convenience often takes precedence over security.

I think rather than going to the trouble of setting up our own wallets, guarding private keys, and making sure they are protected from potential threats, it's better to migrate or abandon them and fraudsters are always looking for new places and centralized exchanges (CEX) and that's their main target.

Abiky

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Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

Exactly. Unfortunately, most people these days want what's most convenient to them. It's a hell of a lot easier to keep crypto in an exchange, than making your own wallet, loading it with crypto, and securing the private key and/or seed from "harms way". This carelessness, is what makes centralized exchanges (CEXs) the main target of hackers. What happened with FTX was not a hack, but rather a result of "mismanagement" from the team.

Either way, the collapse had a negative impact over crypto market prices for a short period of time. The damaged would've been "mitigated" if decentralized exchanges (DEXs) were the "driving forces" of the crypto market. Don't expect things to get better, especially when CEXs still "hold all of the cards". They will only become bigger and stronger than ever. At least, we know DEXs won't be going anywhere. As long as people have a choice, there should be nothing to worry about. Just my thoughts Grin

iv4n

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Quote from: Marvinnous on September 21, 2023, 03:41:43 AM

Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

I really wonder if there are still such people keeping money on exchanges, especially after all the latest news about coins delist, exchanges blocks, etc. My rule from the very beginning was to choose the trusted wallet and keep everything there.

Well, I have some amount in some exchanges, like I have some amount in some casinos... we either trust the service or we don't. If if trust it we will always have some amount of coins that we keep in those services. Of course, we risk with that, but moving funds after every trade, after every gambling session, can be expensive. Of course, that should never be an "all-in" amount, it's the part we feel comfortable leaving there sitting and waiting for the next trade/gambling session. If you are not comfortable with that, you shouldn't use that service in the first place.

Marvinnous

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Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

I really wonder if there are still such people keeping money on exchanges, especially after all the latest news about coins delist, exchanges blocks, etc. My rule from the very beginning was to choose the trusted wallet and keep everything there.

AmoreJaz

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Quote from: wheelz1200 on September 19, 2023, 04:55:40 PM

It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

that's actually pretty and simple. and that is absolutely right! cex or dex, is all the same. they will screw their users if they want to. ftx won't be the last exchange that will have such problem. so long this industry is existing, there's a chance of having the same prob again.
so it is up to the individual how he will secure his funds. always keep in mind about having your own control over your funds.

wheelz1200

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It's everyone's choices that led us to this point. Stop leaving money on exchanges and using them as a personal wallet and the problem is solved. It's not the idea of dex vs cex, it's really how people utilize them. Put money on, trade, take money off to wallet where only you control the keys. Boom problem solved

s.tanishka

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If people only used decentralized trading platforms, cryptocurrency wouldn't beat the banks. I'll tell you why. The banks and their very rich and powerful friends would not approve of this and would very quickly ban cryptocurrency on a legislative level. The banks have all had cryptocurrency for a long time and as soon as an official law is passed in the US, the banks will clamp down on the cryptocurrency market very hard and very fast.

Abiky

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Quote from: DeathAngel on September 07, 2023, 03:18:18 AM

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.

That's precisely what's holding crypto back. By bringing back the middleman, crypto won't be able to achieve its full potential. It's like going back to the era of banking. Wasn't Bitcoin created as a response to banks' failures? Trusting a centralized exchange would be no different than trusting banks with your money.

If people only used decentralized alternatives, crypto would've defeated banks by now. Don't expect CEXs to disappear, even though the collapse of FTX had a negative impact over crypto market prices. CEXs will only become bigger and stronger than ever. Especially now that regulators are weighting on the industry. Who knows if someday FTX makes a comeback? Just my thoughts Grin

Marvinnous

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Quote from: trendcoin on September 07, 2023, 09:48:11 AM

Such calls happened all the time before and after the FTX crisis. I was not in the market when the Mt Gox crisis happened but I am sure it was more traumatic than FTX. People didn't do it the right way then and they don't do it today (including me). Centralized exchanges have some advantages and those advantages are attractive to us. On the other hand, decentralized exchanges are still too complicated for some of the end users, and not good enough for exchanging coins on different chains. However, if we don't pay enough attention to such calls, centralized exchanges will continue to trap us all, as in the case of Mt Gox and FTX...

Can you tell more about "decentralized exchanges are still too complicated for some of the end users"? The ones that I used looked the same as CEX, but without KYC mostly. So what's the difference and complication?

s.tanishka

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Quote from: wheelz1200 on September 07, 2023, 04:12:47 PM

Did it really take this fall to realize people shouldn't use exchanges like theor personal wallets? It's far too late for some people as they don't use nor care to even learn what a real wallet is. For those in that group they are destined to eventually fall victim. People should never have used exchanges as wallets in the first place, it's counter to everything crypto was even created for.

I fully support your opinion. Each person should be responsible for their own money. Therefore, if a person has not learned how to keep his assets, it is only his fault that he lost money. If you are too lazy to figure out how everything works and become really educated, you decide to shift all the responsibility to other people. People like that don't deserve to have a lot of money.

wheelz1200

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Did it really take this fall to realize people shouldn't use exchanges like theor personal wallets? It's far too late for some people as they don't use nor care to even learn what a real wallet is. For those in that group they are destined to eventually fall victim. People should never have used exchanges as wallets in the first place, it's counter to everything crypto was even created for.

Blitzboy

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Quote from: trendcoin on September 07, 2023, 09:48:11 AM

Such calls happened all the time before and after the FTX crisis. I was not in the market when the Mt Gox crisis happened but I am sure it was more traumatic than FTX. People didn't do it the right way then and they don't do it today (including me). Centralized exchanges have some advantages and those advantages are attractive to us. On the other hand, decentralized exchanges are still too complicated for some of the end users, and not good enough for exchanging coins on different chains. However, if we don't pay enough attention to such calls, centralized exchanges will continue to trap us all, as in the case of Mt Gox and FTX...

The appeal of centralized exchanges is clear. Their interfaces are smoother, transactions are faster, and volume is larger. They become a double-edged sword. We (including me) often choose convenience over security. We expose ourselves to centralized entity vulnerabilities when we do so.

I agree that decentralized exchanges are complicated. They're imperfect. However, they provide openness and security that centralized exchanges lack.

Clear: crypto requires effort, investigation, and ongoing learning. Mt Gox and FTX are terrifying examples of this. We risk repeating history if we ignore these calls. I urge us to be cautious, stay alert, and put our safety first. The world is wild, therefore we should be prepared.

trendcoin

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Such calls happened all the time before and after the FTX crisis. I was not in the market when the Mt Gox crisis happened but I am sure it was more traumatic than FTX. People didn't do it the right way then and they don't do it today (including me). Centralized exchanges have some advantages and those advantages are attractive to us. On the other hand, decentralized exchanges are still too complicated for some of the end users, and not good enough for exchanging coins on different chains. However, if we don't pay enough attention to such calls, centralized exchanges will continue to trap us all, as in the case of Mt Gox and FTX...

fantraun18h

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Certainly, in the future, centralized exchanges (CEX) will likely come under government regulation, while decentralized exchanges (DEX) will remain completely transparent but need to enhance network security to prevent hacker theft incidents. DEX and CEX can coexist side by side. Regarding FTX, the owner of this exchange as well as its executives are facing allegations of fraud before the law.

iv4n

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Quote from: s.tanishka on September 07, 2023, 01:16:12 AM

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

Well, I think that the crypto world is largely centralized. There's also that decentralized part, but it's definitely much smaller. Just take a look at Binance, and they are growing... So I think we will never have a fully centralized/decentralized world. It's probably impossible to discuss the shares of the centralized/decentralized part in the crypto world, many crypto services and projects use the "decentralization" word just to attract people.

Topic: After FTX collapse, some call for a return to decentralized roots - page 2. (Read 2016 times)