Over $8 Billion exits exchanges - haven't seen better news since


There's a saying that all things work together for good and right now it feels like the FTX collapse could become a catalyst for DeFi adoption and also birth new long term investors?

The thing is, having your crypto assets on exchanges triggers the need to leverage it for one thing or the other, maybe you suddenly wish to short or long the market following news reports and so on, this further exposes one's assets, that said, not having it there reduces this.

Over $8 Billion Withdrawn From Exchanges Following FTX Collapse

It's rather fun to watch people fear the right things, I mean, it the past we've seen cryptocurrency investors or maybe just speculative buyers fear that the government will ban crypto or really just put an end to it, when in reality, the chances are slim as it not only creates an avenue to losing potential economic growth as a country but it also puts the finances of citizens already involved at risk.

But all of a sudden, FTX drama and boom, everybody knows the evil centralized cryptocurrency exchanges can do. It's sad though, centralized exchanges have played a major role in crypto adoption, that's an undeniable fact, but then, being a centralized entity creates room for bad actions that can affect the users as we've seen in the case of FTX.

Fear is a good thing sometimes

To be Frank, I've never once not had a certain level of fear of moving any asset to an exchange, and now that this fear is felt by many, I can say we may be onto adopting what doesn't attempt to earn off the value we move - decentralized exchanges.

Approximately $3.7 billion worth of Bitcoin, $2.5 worth of Ethereum and $2 Billion in stablecoins have left exchangers since FTX drama began, and while I want this number to be significantly higher, it is good to witness a potential eye opener to what actions the industry has to take against these centralized parties, in fact, this makes it less easier for the government to regulate cryptocurrency, with less centralized companies having access to our assets, the harder it becomes for the authorities to freeze them unlawfully as it may be attempted or should I say has been done many times?

Mass Layoffs

In coming things, we may see more layoffs of staff following liquidity shortage which significantly affects income and revenue. Lots of these exchanges will be forced to fire a handful of staff and this could affect their ability to build and scale.

Things of this nature make us value products and projects in crypto that are built by community efforts and support. No company can be compared to this, market turbulence has very little effect on decentralized building ecosystems.

Spotlight for builders

The time has come for projects under the desk to earn popularity, with more and more badly managed projects and companies falling out of sight, true industry builders will have the spotlight to manifest.

We will see a handful of projects and products in coming times, so much is in the works regardless of all that is happening and the next wave of a bull market will most likely beat anyone's expectations. It's safe to speculate riches, but I also fear many are not ready for what's to come, thus, more bad management of value could fall through, of course, as humans, we hardly learn from the past.

Thank you and please leave a comment, your thoughts matter to me

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Well, this is highly expected and I'm still trying to wrap my head around why people stack loads of their asset in these exchanges.

So many people have had series of cruel experience due to Exchanges. It's high time these people open their eyes and pull out their fund from those places.