What's Your Takeaways From the FTX Failure?
When you are in crypto, things can take a u-turn at any time. Before FTX collapsed, FTX CEO Sam Bankman-Fried was very popular. It is as if investors and institutions trust him blindly. What just happened in a week changed the whole thing.
A person who is well-connected with high-profile individuals, politicians, and regulators can draw people's attention. It feels like he is trustworthy. What you see outside can be totally different inside. And that can cause you to lose money if you fall into their trap.
You have to go back to the basics. You hold your private keys, you have ownership, control, and freedom. If you give it away, you may lose your ownership and control. Even though you know you don't own crypto if you leave them on exchanges, it seems okay to do so.
When you decide to create an account on any crypto exchange, you think the largest exchanges are safe and secure. You feel comfortable using the exchange. It seems there is no way anything can go wrong since it is so big.
Being the second largest crypto exchange, people put their trust in FTX. The thing is, you cannot trust centralized exchanges, no matter how big they are. There is no guarantee they will not follow the FTX's footsteps.
Many people transfer their crypto from centralized crypto exchanges to their own wallets. You can notice a huge outflow in a week. That's a good thing. FTX failure ensures once again, not your keys, not your crypto.
Now people use DeFi more to make transactions. The security and safety a decentralized platform can offer, no centralized platform can offer that. There will be more development in DeFi in the future.
Unfortunately, you may see some centralized authorities have more power over DeFi. For example, the venture firm Andressen Horowitz and crypto exchange Binance have a huge amount of governance power on Uniswap. Binance invested heavily in DeFi.
FTX failure shows there is no alternative to decentralization. You cannot trust any big player blindly and put your hard-earned money in their hands. Someone acting like a savior does not mean he does not do any shady things behind the scene.
You have to take responsibility and protect your crypto. Ask yourself whether you are comfortable losing your crypto. If not, think twice before transferring and keeping your crypto on centralized platforms.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. I'm glad to meet amazing people all over the world.
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Not your keys, not your crypto. There is risk everywhere and it's good to make sure you are safe over trying to earn a few percent here and there.
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Safety always comes first. Then you can think of earning!
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I don't think I can purchase crypto if not for these centralized exchanges. However, I can only think of using these centralized exchange for that purpose. Move your crypto to your wallet immediate after the purchase and don't plan on storing them in these exchanges. 😊
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After buying crypto, moving them from exchanges is the best idea. No one can tell what are they doing behind the back. Once that's revealed, maybe that will be too late.
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I'll tell you what I think and it may sound strong: Hackers are watching, well it's their job, many have been hacked, so why don't they put more security in place, I think it's the same owners who do their thefts and then they say they're the Hackers, I have a cold wallet, I even have a small safe in my house, there it is, I only trust myself, if I die I have already told two of my relatives that everything is there and the explanations are on the computer, no words, nothing , all there
Cool! We need to have arrangements like that. If anything happens to us, our family can know where to look for. Your crypto, you have to ensure security.
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