Topic: I don't see this changing anytime soon - page 2. (Read 589 times)

Human nature is generally not to rely on anomalies to influence decision making, but it seems as if so many of these centralized exchanges have gone down that it isn't sensible for people to continually keep their money on these exchanges and roll the dice that the next exchange that crashes isn't the one they keep funds on. My reasoning is ignorance -- they treat these exchanges as they do their local banks. Of course most local banks have the backing of the government and the government can generate funds on a whim if there ever was a liquidity crisis. Exchanges have no such power. Liquidity issues means the entire exchange bankrupts itself if they can't secure emergency funding (of course we knew FTX tried to secure emergency loans that fell through).

To your point, I don't think these exchanges will go anywhere. People are overly reliant on them.

I was one of the victims of FTX, I lost some satoshi I saved there, of course I have big regret in my heart but what can I do, it all happened.


you are not evil, it's not wrong to remind other friends about the dangers of CEX and if they don't listen to it then it's purely their fault, I actually still use CEX but I only use it when I need money to exchange the cryptocurrency that I have with currency my country's fiat money.

The problem is that one-time events don't fully discourage humans from doing anything. This is just not how we learn to react to events, as a majority, and the general mechanism is even useful. There've been tragic car/plane/ship crashes, mass shootings at schools in the USA, and lots of other major events. But people continue to take kids to school, use various means of transportation, etc. If we didn't, life would be so much harder for humanity. So here comes a scam/bankruptcy of an exchange. It's a bad event, yes, but people are also very use to exchanges to abandon them, and since this crash didn't trigger a series of many other crashes, it can still be perceived as an unfortunate but unlikely event, thus not motivating enough to avoid centralized exchanges.

You judge something and then made a decision out of nowhere. Now you are wrong with what you did.
What happened with FTX might affect the whole CEX's trust with the users, but you can't change the fact that CEX is a big help for us investors. Where can you buy Bitcoin if it wasn't for CEX? Aside from P2P transaction, there aren't any way anymore.

Like I said, it's because investors have no choice. Aside from CEX, they don't have any choices on to where they can buy coins that they want to hold for long term. Problems come. Scams come and frauds are happening all the time, but one things for sure. People will always move on from it and move forward and with this, they will continue to use centralized exchanges.

You aren't evil at all. You are just sharing your opinion and I'm sharing mine as well. Centralized exchanges will be as important as it is before and after the FTX fraud incident happen

some people just moved their funds temporarily to private wallets due to the FTX case which came to public attention for using users' funds unwisely.
Then investors will still use a centralized Exchange because it is the link between Crypto and Fiat. However a centralized Exchange is still needed. When the FTX case is over, centralized exchange users put their money back in. Staying away from CEX or choosing to use it is everyone's choice. Risk is the responsibility of each.

That's just your opinion. Your opinion matters only to you.
I'm also against centralized crypto exchanges in general, but it seems that the legit and trustworthy centralized exchanges are here to stay and won't be going out of business anytime soon. The problem is with the crypto scams masked as centralized crypto exchanges.
In theory, every centralized crypto exchange might turn into a scam. Things are different in reality. You could say the same thing about every bank, but that doesn't mean that all the banks will go bankrupt eventually(or scam their customers).
The FUD around FTX was just pointless noise. Another big CEX might turn into a scam (or go bankrupt) and all the FUDsters will jump out of their rabbit holes screaming "I told you so, crypto is a scam!" They just can't (or they don't want) to differentiate cryptocurrencies from crypto companies.

I believe that this is the big argument and will continue to be. The reason why we keep talking about CEXs when anything happens is because of the amount that is lost by investors in the process because investors have refused to understand or accept that level of associated risk, unlike the DEXs where you just connect your wallet and finish transactions, disconnect from all sources and that's it however, I believe that the services obtainable on CEXs are still one of the factors drawing investors that way.

Yes, DEX developers still need more time to make their exchange as good as CEX and maybe they will make their DEX look newer and different than before. But what they have to watch out for is the transaction fees which can get very high, as happened in some DEXs in the past. And there are still many people who still like to use CEX because there are more choices that they can use. But as the rules on CEX get tougher, maybe it's time people switch to using DEXs.

And I don't see that situation changing any time soon. I can definitely see why you want to see CEX disappear or at least lose some of their significance. More privacy and protection against hacking make DEXs a promising option for the future of cryptocurrency trading. However, I believe it is crucial to think about the everyday individual who isn't as tech aware or interested in the technology underlying crypto currencies. They are just concerned with generating money, and CEX facilitates that goal.

You said you transferred some of your cash to DEX, yet despite the FTX issue, regulars are still frequenting CEX. This is a textbook case of putting comfort before safety. Even though there is a greater risk of having their money stolen, users are more likely to go for a platform that is easy to understand and use.

It might be daunting for anyone unfamiliar with crypto currencies to consider opening a DEX account and moving assets there. If your only goal is to generate a profit from your cryptocurrency investments, CEX is a great alternative because it is a one-stop-shop for both purchasing and storing crypto currencies.

In sum, I don't see CEX's significance dwindling any time soon. While the FTX event may have caused some consumers to be more wary, CEX continues to see heavy usage due to its ease. DEX may one day become more beginner-friendly, but until then, CEX will continue to enjoy widespread use.

The DEX developers are doing their best but bringing all the features of CEX to the DEX is not as easy as you think, if they simply did it long ago without waiting for you to ask this silly question. They are still working to have the best solution, not sitting around talking nonsense like you. Ideas and theories are easy, but turning it into reality requires a lot of research and time.

to store it in the long term, it should be safer in our own wallet, even big exchanges are only used for transactions, and after that return to personal wallets. this is inseparable from accountability if the worst thing happens, of course we will find it difficult to take care of it. therefore for me it is better to prepare before that happens, because this concerns the assets we have, so we must always be careful.

I have the same feeling like you do and I can say we are not evil because we don't like the centralized exchanges we are even waiting for these exchanges to become less important to fall one day because if you check the history you can see many cases where the exchanges were promising people to provide the safety of their money and many people trusted these platforms while in the end they somehow lost their hardhanded money and got nothing in the end. That's the reason to say people should not hold their money inside these platforms.

They are already comfortable with centralized exchanges so it's impossible to just leave the exchange just because of the FTX exchange scandal so not all exchanges will fall into the same hole but the safest thing is to never put long term assets in a centralized exchange then it will be risky even we have know from all aspects all this.

Someone trades on the exchange they certainly want to make a profit and the convenience of trading there this will be completely different from DEX which is only 1 network to trade whereas centralized exchanges can trade almost all the coins available here so it's clear they won't leave even though there have been many cases in the past and recently it was FTX.

We have to understand and be able to manage risk well, that's the most important thing to instill.

This kind of thing comes back to myself in my opinion, because it's purely their belief in what they believe with a centralized exchange. They may feel very worried about what happened a while ago, on the other hand they also trust the centralized exchange they are used to. In the end they just withdraw all their assets when they hear bad news, and once it settles down they will come back. No one can force something like this, because once again that's what they really believe to stay or turn away.

There's a positive in all of this. Nobody made as much progress into making people aware of self custody options than SBF.
You can keep telling people their funds aren't safe but they won't listen until one day they lose some money and then they get the great revelation. It's like these people who buy an alarm when their home gets broken into.
I also don't see this changing but there's always a sliver lining to everything. I'd say that the event flushed out people who were scared when bitcoin was at 30-20k. They'd be out anyway in the next 6 months if the bear market were to continue.

The problem is that people tend to be very lazy about their finances and bitcoin is no exception. When the whole FTX thing went down, I had a couple buddies reach out to me about having their coins in Coinbase exchange wallets and asked whether they should keep them there any longer or not.  I told them all that they should move their coins to hardware wallets but yet still none of them have done this. So it just goes to show centralized exchanges are unfortunately probably not going away any time soon.

Centralized exchanges has been becoming too big these days just because of the people who are able to afford some cryptocurrencies even bankruptcy or hacking happens to their exchanges. I mean for individuals such funds are seeming small (I mean considering the majority of crypto people who are ready to risk by trusting exchanges even after so many such services gone in last one decade of time), but due to the ever increasing the userbase of cryptocurrencies, those small amount's sum up leads every exchanges to grow bigger.

These days, exchanges are not just providing only basic trading functionalities but they offer many other services like letting their clients to lend out, hosting away periodic giveaways from new listing, platform for running tested bots for automated profit generation etc. So, I am also sceptical about what you want. Probably when more exchange services are coming up and proving them then we have less important to one particular exchange but exchanges will stay with us for sure.

What you are pointing out is part of human nature, for example think of all the houses which are built in terrain which has the tendency to flood, you may think that after this happened a few times humans will either stop building their houses where this happens or they will modify the terrain to avoid this outcome, but many times they do neither, humans simply ignore it and keep building their houses and living there, does it sounds familiar? It should because this is exactly what is happening with CEX.

You need to understand the market and how many investors see the market. There is no way people are going to leave the centralized exchange because it has amazing features that are never available on decentralized ones. The problem is not about becoming anonymous but getting what we want done without stress. Many of these centralized exchanges have features that are bringing investing to keep saving there funds there and getting what they want done.

On centralized exchanges, you can stake your coins, swap, trade, save your coins, peer to peer etc which makes it more attractive to traders and investors compared to decentralized that has limited features.

They will be affected and it can be in a great extent but there will still be people who will take a risk only to continue using them. FTX could be lacking of transparency but I am not sure about regulation. They can be regulated already as they are among the big and famous exchanges and people who use them are also required to do a KYC. After the incident, exchanges now are required to have a proof of funds. This can now make them more transparent than before.

When it comes to convenience, isn't this a specialty of decentralized exchanges? Because, they don't require us to sign up or even do hassle KYC but we only need to connect our wallet and we are now good to go.