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

Exchanges are major parts of the cryptocurrency industry.
Whether we like it or not as long as cryptocurrency is existing exchanges will also exist
Personally I prefer exchanges to banks . But before one could choose an exchange you need to be very careful about the reputation and the type of exchange you are into.
Finally, everyone should treat exchange as an exchange and treat their personal wallet as a personal wallet

Privacy and security are very important, but after all, what people are still looking for is convenience and ease of use, so I don't think CEX will be phased out anytime soon and DEX will gradually replace CEX.

Personally, I'm still using CEX for my trading as well as converting to fiat, so I don't have too much prejudice against CEX. I just want to say that FTX crashes don't mean all CEXs will crash. Along with that, whether CEX or DEX has risks, DEXs are not absolutely safe, so we just need to be cautious when using them and never trust them completely.

We are really looking forward to the end of the FTX story, I hope there are confiscated assets to be returned to investors, of course it takes a lot of time to get a refund from FTX, this is an important lesson for us not to store large amounts of assets in central exchanges, because things are bad happens and repeats.

You are right that the scandal with FTX exposed problems with centralized exchanges. Until recently, most people didn't pay much attention to it because they were used to entrusting their funds to third parties and paying fees for it. Recent events have fueled a lot, but no doubt centralized exchanges will continue to thrive as long as we don't develop better alternatives.

For now it crosses my mind. Centralized exchanges have been here for a long time but who knows one day people will come back to storing their crypto on USB too. one thing i noticed DEX has proven to be a different breed and will be around for a long time. Hopefully, we'll see more DEXs enter the market and make that something sustainable in the future.

As the crypto economy witnesses its growing phase, I think what should determine the ability of a product to attract new users is the ease of use, and as we know, DEXs are still complicated for newcomers, thus most new people go to CEXs like Binance and Coinbase. In addition, marketing plays a major role in attracting new users, and there's no comparison between CEXs and DEXs regarding this point. Moreover, users might be victimized by phishing attempts when using DEXs. All these factors make me believe DEXs still have a long path before it become easily usable for everyone, regardless of their experience in crypto.

And this shows once again how CEX are becoming more like banks as that is exactly what they do, banks are supposed to just store your money and have it ready whenever you want to withdraw it, but they think of that money as theirs so they begin to use it to generate more profits for themselves, but if something goes wrong and they lose that money then they will eventually be unable to pay their clients what it is rightfully theirs, which is exactly the situation in which FTX found itself.

I agree that it was isolated, and not the whole market, but we shouldn't say there are no others neither, there are some which could be considered doing something like this.

FTX bankrupted, and they basically "stole" everyone's money, they didn't really steal it but used it without consent, but not for like buying villas and super cars or something, they used it to grow the business and invest in other things, so they could make more profit, but in reality they didn't make any profit and when people wanted to withdraw, they couldn't. Long story short, this type of thing happened before and will happen again, it is not the whole market, but it is not rare neither unfortunately.

The FTX case has passed for almost 4 months and it seems that there are no results that satisfy consumers, the latest development is that in March an audit of SBF assets will be carried out but I'm sure this will not be very useful, the court should immediately investigate the SBF transaction and then confiscate all these assets, thing ridiculous from the FTX case hope it doesn't happen again in the future.

What happen to FTX is just an isolated case and it just happen to them only, not the entire market. Of course, trust can be somehow affected by other CEX exchanges as they also think of the same scenario which is a very common thing to happen. But this kind of thinking won't stay long, TRUST will get back and that is why many people are still using centralized exchanges this time. I really don't think there is a huge change in the future of CEX but people will remain using these platforms as long as they are satisfied with their services.

People trust an exchange when there is a known entity behind its operations. This is the main reason why centralized exchanges are preferred over decentralized exchanges. Many users do not have the technical knowledge to verify the balances in a CEX's cold wallets, which are used to store funds securely. This lack of transparency makes users vulnerable to potential fraud or mismanagement of funds.

The recent events with FTX illustrate the importance of transparency. Despite being a well-established exchange, FTX never made their cold wallets public, which raised concerns about the safety of user funds. On the other hand, exchanges like Binance are known for their transparency, which builds trust with users.

The FTX case will disappear because there is no clarity, investors' money will disappear, and this of course has happened many times, I have also lost money from several bankrupt exchanges such as livecoin, coinexchange, ooobtc and so on, the position of crypto consumers is very weak and since that moment then we have to store assets in a private wallet so we don't worry about surprises and bad news.

There are plenty of advantages to centralized exchanges. Both DEX and CEX have their place in the crypto world. Neither one will die out. They both have their uses and they both have their flaws.

I would say centralized exchanges are far superior for traders. But DEXes are good to pick up random alts if you want to invest in them, or swap out coins every once in a while when you want to change your investments, but I would never actively trade on a DEX.

No matter how cryptocurrency enthusiasts like DEX, and also secure crypto investment holding through non-custodial wallets the reign of the use of CEX cannot be excluded from the crypto market. That's if we want cryptocurrency to achieve its purpose in the reign of payment and money aspect.

CEX cannot go whether you like it or not unless DEX will go because CEX is somehow working with the government and I read that the government is planning for crypto regulation.
10% of all crypto enthusiast care about privacy this is the reason why CEX gaining more use than DEX.

You are definitely right on this one and come to think that if DEX does only exist then how we would gonna make out conversions from our crypto to fiat? For sure we would really be finding up some mediums which i coudl say that it is a bit hassle unlike when we do have exchangers as of today that we could really make out some conversion in a snap or something that would really be that easy and this is where people would really be sticking into without minding that much about the risk.Even we are aware but we dont have any choice because this is the only method that we could really be able to make use
to make those conversions in most convenient way which it is really hard to ignore out.

The reason is that as long as crptocurrency exists,these exchanges must also exists because we need them to trade easily and because of this,so many people prefer leaving their coins in them for easy access,even when they know the consequence of their actions.

If one exchange crashes,there will be another exchange to take over the market. The problem with human is that when something drastic happens,they only take caution at that moment,after sometimes they become ignorant of what happened. Maybe because they were not the victims of circumstance,they only learn when they become the victims.

Decentralized exchanges have no peer-to-peer payment, there is no way one can buy crypto using Fiat on dex, this is one of the very few reasons why people won't ever leave centralized exchanges and go DEX.

Centralized exchanges make things easier with FIAT currency straight from the banks worldwide, the day that Dex will be capable of these, it will make a very big difference, I know that CeX is better in many ways but Dex is more secure and there is no way a Dex will allow connections with banks without breaking the Decentralise meaning.

Long-term, that's inevitable. Big banks aren't going to give up on power and influence, so in order to keep things under control, they need, they have to either acquire or merge with CEXs.
Also, in a world where user experience is becoming smooth, things are getting fast & easier, while people are getting dumber, it becomes impossible to make people interested in more complex tasks. They prefer to use 3rd parties and give up on control in exchange of smooth and easy experience.
World is moving this way. For instance, gaming industries actively implement cloud gaming where you just subscribe the service of Xbox Live, PS Now, Ubisoft Origins and play this way. I mean, by doing so, you own nothing. You are renting games and equipment together. One may say that my example sounds funny but if you look deep enough, this means that in future, people will just rent product and equipment online, giving them false sense of ownership while in reality they'll own nothing. Preparation for this kind of future starts today, in niches where you don't even think about this. Then you become familiar day to day and the lit of protest is fading away.

That could be, though I think a big bank might start their own or perhaps buy an established and regulated exchange like Coinbase--and though I think that would be bad for the crypto economy, I can't stand Coinbase or banks so let 'em have it.

Most people aren't technically savvy, and I think it's a lot easier for the majority of them to use exchanges like Binance or, before they went belly-up, FTX.  They probably saw all the advertisements and thought that an exchange like FTX couldn't be a scam, and at the same time those same people might not even know what a DEX is or what the advantage is over a CEX.  I don't necessarily fault anyone for that, because if you want to get into the crypto game fast there's just too much research to be done if you're starting with very little knowledge.

Yeah, but FTX wasn't a one-time event (if you're talking about an exchange going bust because it's a scam).  After all the exchanges I've seen go under over the years, people still use centralized exchanges as if nothing ever happened--and that would be fine if people didn't leave large amounts of crypto on them, but apparently they do.  So yeah, I don't think people are going to give up the CEXes anytime soon.

Until they blow the huge scandal up , they won't leave.

You can never say the biggest centralized exchange like binance could be forever run smoothly without a problem , unexpected things could always happened included to exit scam people in the future due its centralized nature that has zero protection for its customer. We do go for them because yeah we have not much option to choose.

No one will leave the major exchanges, we already understand all this.Firstly, it is convenient.Many newcomers immediately go there and do not want to look for an alternative, because more knowledge and new skills are needed there.Most often, beginners want to press two buttons and buy what they are interested in.Many people do not understand how these or those exchanges are arranged and according to what principle they work,so most go to where there are more reviews and acquaintances.

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.

Then this is the problem, why can't decentralised platforms work on their trading features to meet the standard of centralised exchanges? What are the developers doing? Why is this hard to built? I can see that your point is very valid because I haven't seen any dex that operates so well like binance, huobi, okex, kraken, I think the problem of DEX is the trading features only, other features are working perfectly.

Centralized exchanges have their own target market, and it won't go down just because obscure companies are having an issue. I know that FTX is widely popular and its downfall becomes a contagion, but do note that it is only because of lack of transparency and regulation, that is why I said them as obscure.

The convenience that centralized exchanges have given won't make regular joe migrate to the current imperfect decentralized exchange. The barrier to entry for mainstream or simply because of reasons, won't make a majority of them use DEX. Instead of hating it until you hope CEX is obliterated, we should know that people have their own choice in regard to crypto usage.

You aren't that wrong, you took a right step rather in taking heed which others have failed from realising, there's nothing that can be changed from what centralized exchanges are.


Don't get it wrong mate, people were not moving out because of FTX collapse, they just used that avenue to realize the mistake they have been through while using a centralized exchange all these while, there's this one thing you need to know about centralized exchanges, you can use them to buy your cryptos but avoid using them to store those asset, buy and move to your own wallet.

Centralized exchange will indeed be a problem and it will happen often, it's time we switch to DEX exchange so all the assets we keep are independent from exchanges, I've had problems with kucoin, after more than 3 years not logging in then they moved all assets, when the login system refuses and when asking for help it turns out I'm like registering a new account so the assets I once saved are gone, I check at the address that all assets have been transferred.

Problem is that many people generalized the incident even if there are many other exchangers which are trustworthy. Not because such case occured, same thing will happen with other options. Remember how many times cases of such occured; just a few right? Simply because their negligence will never represent this industry. Many exchangers are still there which has a better support, and reputation than with FTX. You just need to find the right one.
That's just how panicking works I guess. The industry have been dragged by the incident which is a consequent effect of it. There's more in this industr; an investor could engage with reputable decentralized exchange or simply move to other centralized. This would simply be unending if people of such won't stop relating it to every scenario we would see from this industry.

If you become eviler than that, you don't need to worry too much because no one will care what you think. Give me a reason to leave CEX, I have been using coinbase since 2013 till now, and I have not had any problem with it. You can't say I should leave Coinbase because FTX has collapsed.

Honestly, I don't have a grudge against centralized exchanges either and I've never had a problem with them in my years of use. I disagree with some of the comments that just because of the demise of FTX we say they should all be scrapped or ostracized. FTX's demise is like a shitcoin project disappearing, and just because a project dies doesn't mean the crypto industry is a scam. Centralized exchange is where we exchange coins with each other, P2P...not where you hold your assets for long. If you lose money because of that then it's your fault, don't try to blame them.

I personally I never expect decentralized exchange will take over centralized exchange sooner or later because most people already enjoy about the centralization, it's started from their local government who have a rules and regulations where many people need to obey. If most countries are less centralized and let their citizens to choose what they want for their freedom, decentralized exchange would take over centralized exchange.

You're not evil for wanting decentralized exchanges over centralized exchanges. The former is generally better. But if you secretly wished for these centralized exchanges to suffer the same fate as FTX, you must be evil. The collapse of FTX also means people's money is gone. That's sad.

But with the details you shared here, it seems you are a bit evil. It seems you didn't simply want decentralization over centralization. You had ulterior motives. It seems you simply wanted to make money. You must have thought the fall of FTX and the FUD against the rest of the centralized exchanges are a cue to buy DEx tokens and make money. You must have thought it's the perfect time for DExes to shine. And when you saw the CExes continue to thrive, you were disappointed not because centralization prevailed over decentralization but because you didn't make the money you imagined. I hope my interpretation is wrong, though.

Lastly, if it's a DEx and it issues tradeable tokens, it's something I don't really like. DExes don't have to make their own tokens to function as such.

FTX is not so big that its downfall will make the centralized exchange incapacitated.  FTX is just one of the many exchanges that are operating in the cryptocurrency sphere.  I agree that it is one of the big exchanges out there but there are more centralized exchanges that are bigger than FTX and will certainly operate and gain users' trust.


People will never leave centralized exchanges for the mere reason of convenience.  With centralized exchanges, people can buy and sell different cryptocurrencies without moving from one wallet to another due to network differences.


It's fine, I think.  Everyone has their own belief, you can express your thought and feelings and try to convince others to accept your belief as long as you don't force it and create misunderstanding and hate between users that believe in centralized exchanges and decentralized exchanges, i think it is not evil at all.

Everyone who is a victim of FTX would never have thought that the FTX case could turn out to be this big and make them all suffer huge losses too. This will be another lesson for us: we must be very careful in using centralized or decentralized exchanges because we don't know how it will turn out in the future. Maybe after the FTX incident, many people will move to decentralized exchanges, but centralized exchanges will exist with other traders.

OP, why are you even doing this? So be it. Bitcoin is meant to be its own bank. What do you care about other people? You can't save the whole world from stupidity; you always have to start with yourself. When an airplane crashes, you must fasten your seat belts first, and only then the seat belts of your children and others. If people want to be deceived, they will get it anyway, one way or another.
Your own awareness is enough; don't do it yourself. Not everyone learns from the mistakes of others; let people make their own mistakes to gain their own experience.

The centralized exchanges are never going to go away, because people are attracted to the comfort and also the profits that can be made from the trades that they are doing on these Exchanges. 

I hope the people who came back to the remaining exchanges, learnt a lesson...namely not to store your coins on these centralized exchanges. If you do not trade on a regular basis, you only need to buy tokens.... withdraw it from the exchange and store it on external media. This way ..you are in control of your own private keys and you reduce the risk of those centralized exchanges getting hacked  and you losing all your tokens.

Nope, we all have our own preferences, but I think most people especially the new ones are more inclined in using convenience rather than having full control over your asset but are complex to use. Volume and liquidity speaks more about this reality.
Therefore, CEX will never gonna go nowhere, especially when we see a lot of users patronising it.

Centralized exchanges are not going anyway just like the banks. People need these entities so they will continue to exist. I don't want to burst your bubble but bitcoin also won't replace USD. USD is here to stay. USD might get replaced by something else but it is just going to be another FIAT probably. The gene is out of the bottle. The moment Nixon removed the gold/USD peg in 1971, the era of limited supply FIAT was over. The US went bankrupt in 1971. You won't read this in the history books but that's what happened. The US got rekt by the financial system they invented and then they changed the rules without admitting defeat. Now every country can freely print FIAT and I can't see how Bitcoin can change this behavior.

Additional note: The US actually goes bankrupt almost every year since 1971. (I said almost but is there a year that they didn't the raise the ceiling?)  We can say that because every year the US government raises the debt ceiling. They raise the ceiling because they are financing their debt with more debt. Which means without raising the ceiling they are not able to pay their debts = bankruptcy.

I have used cexes in past, and I continue to use it for coins that aren't found anywhere else or ones that have better liquidity on cex. I don't trade actively, once purchase/sell is done I just withdraw them to personal wallet.

Whether you are evil or not, it doesn't matter because you will not be able to change the fact that CEX will never go away and will always be an important part of the market. FTX is just an exchange in the ecosystem of CEX, FTX does not represent the entire CEX, so just because it collapses does not mean all other CEXs will collapse.

I don't store my assets on CEX, but I still use it and I believe that without the existence of CEX, the market would never have developed as it is today.

People will still use centralized exchanges to trade because they have found a suitable place and centralized exchanges will still operate normally.

The FTX case is a case that has been going on for a long time but uses a different motive, even though the essence is the same. So in the future, we will also see the same cases again because the pattern is always repeated and some people will get scammed again.

You can only ensure that your assets are safe and avoid fraud cases like with FTX. You must have another wallet to store all your assets.

I don't think they ever will. They can be considered as a sort of marketplace at this point really, so at that part they won't leave, I do hope that people will stop using exchanges as their wallet permanently, and hope the FTX scare isn't a temporary thing. CEXs are just too convenient for the average person and to any new traders really, and once they grow they'd simply stick to what they learned first rather.
Not really no. But it definitely won't go away, it may become less relevant possibly (but I doubt it), but it'll never disappear.

Basically we will always need centralized exchanges. If you want to buy crypto from fiat or vice versa you got no choice but to use a centralized exchange. The goal is to keep a small amount on the exchange at a time so if something does happen you are not fully exposed.

Most traders on FTX traded with 10x leverage and just kept 10% of their trading capital on the exchange. This was to reduce counterparty risk. So your position is pretty much the same, if you run the risk of liquidation you just send more margin.

Advertising and promotion of CEXs always move faster in all public media and on various occasions, as long as they have large capital to finance it. On the other hand, what we can rely on to voice our understanding of the decentralized financial system are only selfless and profitless initiatives of people or organizations. I think we will always lose in getting more people's awareness with the reasons above.

Nope, you are entitled to your opinion. We all have good and bad thoughts until we realize what is as is. These exchanges are also the same as the market, they're also volatile in nature and with what I mean. Look at the early popular exchanges such as CEX and Bittrex. They've been flying at their industry before but look where they are right now. I think all of these establishments are just learning from each other and with what the market demands. We say see more of them dominate the market soon but there will be at some point of time that they'll be at their lowest and if they survive, that will be the test of time for their business to thrive.

Its because most of the newbie wants a simple life, like imagine they just need their most commonly used email and password to log in and now have access to their bitcoin. I also noticed that when the FTX news came in a lot of people now panicking to get their bitcoin in the exchanges but now a lot of them getting back because those kinds of news died and they are not scared anymore. It is like after getting vaccinated in Covid people are now starting to party.

Centralized exchanges and custodial wallets are simply too convenient to use for it to lose market share. It's as simple as that.

As for buying DEX tokens, most of them are crap(at least the spot exchange DEXs). The ones that have been great investments are tokens of futures/options DEXs.

First thing isn’t taking centralized exchanges away just yet is the more features they offer than the DEX. no matter how we talk about security and privacy on decentralized platforms, many investors prioritizes profits and could swap there privacy to get that. And with features like spot and margin trading people easily ditch CEX for DEX. Another reason why centralized exchanges will be hard to get people off it is the fact that the government easily leans towards them since they could easily be regulated and this helps spreads its popularity in such a way that this is probably one of first things new investors know a thing about. Take Binance for instance, we could see or read about them offering scholarships in some countries in blockchain and this helps them to create the popularity they need. Liquidity which is more in CEX than DEX is also another reason to why people still use them.


Definitely the only advice to be given on centralized exchanges. Just take out your funds after trading and store them on wallets. Sadly if this big exchanges should fall or anything of such it might have an impact on bitcoin price and quicker adoption process even it is for a short time.

Nope, it won't change anytime soon. An average joe would always prefer centralized exchange over decentralized exchange. Even though using DEX might seem easy and simple to us, for most that are new to crypto currencies, and those that aren't interested in the technology, but only in making profit, they will always prefer using a centralized exchange. All they have to do is send money, buy crypto and hold. The FTX incident won't also change anything. Perhaps more people will be cautious, but like you said, after things cooled down, most people are back and using CEX again.

CEX vs DEX is the same competition as Bitcoin vs fiat/banks. Most people are using whichever is all-around best for them. Which is CEX and fiat/banks. Some people have different priorities so DEX and Bitcoin works for them.

Traders want to be able to do many trades per day instantly and with low fees. If DEX requires onchain + bank transaction for each trade, it's going to take a lot of time and have high fees. Most people who are into crypto are only interested in making profits, not getting off the grid.

One of the things that we do really want is to have that security because not all transactions we are dealing on would be perfect on which there would really be errors which we do need up some support and this is where people do really find out themselves to be comfortable with centralized exchangers on which they do know that they could reach up someone if ever there are really some problems that arise up in regarding into their transactions.Decentralization is best but we know that not all people would really be that tech savy or likes complicated things specially in cross chain transactions.
I could honestly say that it is really that hassle and complicated.

You're not the only one, between the two, I prefer the decentralized exchange, but not all investors are fully educated on how to do cross-chain trading, a centralized exchange is too easy and there are no complications just deposit your coin whatever chain it is being hosted and you can trade it from one chain to the other, and if you run on issues you have the support to rely upon to help you weed out any issues that you encounter, it's different on Decentralized exchange you are on your own, majority of us here are comfortable on platforms with support instead of doing things all by themselves.

I can say that you are evil for wanting another person's business to crash and end. What will be the percentage of your joy if you hear the CZ's Binance is down and CZ who is worth billions of dollars is now struggling.
What will be the percentage of your joy if you understand that 5 out of 10 of your friends lost their fund in Binance, Crypto.com etc?

I don't have any problems with exchanges. I only advice that exchanges should be used as exchanges and not as wallets. Live and let live

Lets just face up the reality on which no matter how issues of CEX do pop out in the market, they would be still mainly be supported by the community or lots of users.Why? The main reason is that this is the

platform on which you could trade up your crypto into stablecoins or simply make out conversions to fiat which is something that you cant be able to do on DEX.Yes, it does really sacrifice when it comes to overall

anonymity or totally opposing up its real essence but we dont have any choice unless if you do hold for long term and dont make out some active trading then this wont really be that much of an issue.
Thing here is that we should not put up all of our assets on these centralized platforms which we do know that risk is always there.It would be an endless cycle i would say.

It's not going to change because most people look for the easiest way to deal with bitcoin. They simply want to access their devices, login into their accounts (which already have the password and email memorized), so they can buy, sell or transact their bitcoins.

If they have to download or buy a wallet, store keys safely, and do every further procedure needed for self-custody, they lose interest, because it becomes too complicated on their views. And if it wasn't for the services offered by exchanges, many adopters wouldn't ever have invested in bitcoin.

Almost anyone who knew about MtGox also knew FTX won't stop users from using CEXs.


I'm tempted to bet that if ever FTX comes back online as rumors say there will still be users depositing and trading there, but I also think that there won't be anyone to bet against as we all know this will definitely happen. A bit of promo, a FTX 2.0 token, a giveaway and they are back in business.


I have a feeling that they are not going to be replaced by banks and more likely become banks if they haven't already
- you need an ID to open an account, you need to go through KYC, and even Proof of Funds
- you have your wallet's addresses, like an IBAN
- you can get a card in your name from them, linked to your account, and you can do internal payments between users, completely off-chain
- you have "Earn" accounts just like some banks do
- you get your account frozen even easier than with a bank with nobody to talk about, this is a bonus

So, what really are the differences, other than one is using BTC and the other $ ?

I don't understand what that has to do with being evil. Even CZ himself has said that ee should live towards Dexes. I perfectly understand need for both. Maybe at some point there would be a dex with soulbound identity or something like that. But for now i see that free dexes in their current form could even die away at some point. This i don't see happening to regulated cexes

A good example why CEX won't be leaving anytime soon in this market.
Binance is one of the top trusted CEXs among crypto community, so even if we had FTX fallout, it won't affect customers.
Maybe the thought of pulling out their funds from CEXs and transferring it to their own wallets,
but still people will use the services offered by centralized exchanges.
Just an example is that you can't get a lot of trading pairs from DEXs. Most top alts are still available from CEX trading platforms.

But even though it's like that, I think now it will make a lot of people rethink when they still exist.
It is true that centralized exchanges will always be of interest to many people but with what has happened to them and with such a reputation is it possible that many people still believe? Some may still be able to do it but for me, I will never touch it again even if there are some changes later still in the end the owner is the closest person or has a relationship with the previous owner.

Binance leaving the market? Can you imagine this it will be a big panic and of course people will be more hesitant to start their crypto journey because big exchanges are leaving the market.

You’re not that evil but you’re just over thinking, CEX will stay and will continue to compete with DEX like it or not. What happened to FTX can still happen though and this is a reminder that we should not store any crypto for long term on ang exchanges.

Unfortunately, there are no alternatives to these platforms. Trading services in digital currencies are provided by private companies, and governments have not yet organized an attempt to fully supervise one of these platforms, even as an experiment. Apart from governments, I do not see a more reliable broker to make the process of change in the current market situation after the collapse of ftx.
There are those who advocate the use of decentralized platforms, but these platforms also have their drawbacks. Centralized platforms are not within the reach of all users' capabilities. The current decentralized platforms cannot meet the global demand for trading.

OP, you are not evil in any way. When people have faith in a platform or someone, they will never doubt that person or platform, even if others pose a significant risk to them. People's attention has been drawn to those exchanges, and they are completely comfortable using it. Some people are too lazy to keep their keys safe with them, so they entrust their keys to someone or a platform they trust based on their first impression and how far they’ve built themselves. I'm also confident that if FTX resumes full operations, people will continue to save their money with them. They've invented a trademark that can't be changed or broken.

You're not evil mate just as the first poster said and I really don't see CEX going anytime soon but rather it might be bought by banks and this also shows a very high rate of greed which isn't supposed to be so.
People are truly still using private exchanges and to be frank, I'm also a victim of this and I try as much as possible to be smart enough to pull out my coins rather than just letting it sit over there in my wallet. I also understand that we humans at some points are the majors reasons to our problems and despite all the warning and recent happenings with the FTX, people are still using centralized exchanges and this is because the centralized exchanges are been simplified for easy usuage I guess and people want things easier at all cost.

You are not evil. But unfortunately I don't think that this will (ever!) happen. I have a feeling that sooner or later the CEX will be bought or replaced by our "beloved friends", the banks themselves.
Most people are driven by greed, not by the desire to get free from the system...

When the FTX scandal got exposed I am one of those saying it's over for centralized exchanges, now people will have no choice but to stay away from centralised exchanges because of this, I went to get a few DEX tokens for long term hold but I was damn wrong.

I don't see people leaving centralised exchange because of what happened with FTX, some moved their funds out of exchanges but after all the bad news cool off they go back, it seems centralised exchanges will always be people's favorite, they are doing very well. Look at Binance, after the FUD cleared deposits start coming in, look at Crypto.com, the FUD is no more and people are screaming the name.

Am I evil for wanting to see CEX go or at least become less important?