It is a wonder if any one can trust centralized exchanges again after the FTX drama. There's been a suspicious move by the second largest exchange to save it's neck but then would it be enough? They've allowed people withdraw their assets but at a loss ranging from 70% to 80% and it is a case of running for dear life. No one really deserves to have their hard earn investments to be toyed with like that.
Can centralized exchanges be trusted?
This is a question in the mouths of a lot of people. Can they trust these exchanges to safeguard their assets and give them the best crypto experience necessary. A lot of people are skeptical and are pulling out their assets and storing them in different places. Some few days ago it was discovered that a lot lot of Bitcoin users have withdrawn their coins from exchanges.
More than 80.000 BTC left exchanges wallets in the last 24 hours. Investors are withdrawing their Bitcoin to store them in places other than an exchange,” Maartun wrote.
I really don't blame them, no one wants to be a witness to what happened with second largest CEX and no one wants to suffer loss. Binance on the other hand are capitalizing on the mistakes of their formal rivals. The Exchange Owner CZ has tried to assure users that their assets are safe with them. Yesterday he took to twitter to announce that they are waiting for a new vendor for their proof of reserves. According to him, Binance would be working on full transparency from now on.
Binance also published cold wallet addresses and balances of six coins in their reserves. The Exchange is looking to capitalize on the former rivals mistakes and learn from them. But the question remains, can we trust CEX or is true decentralization the answer.
Left to me, Hive and decentralization is the only way to assured security. What do you think? Where do you store your assets?
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