Contest / S6W2- Centralized Cryptocurrency Exchange Platforms and Its Risks.
Assalamualaikum,
How are you?? Hope all are fine. SteemitcryptoAcademy declared a contest. Contest name: Centralized Cryptocurrency Exchange Platforms and Its Risks. Thank to @Crypto-Academy for organising this kind of contest.
I love this theme. Now i join this contest and also invite @rumman @monnacox @ayeshasiddika18 to join this contest.
I agree with this saying, as it is important to remember that cryptocurrencies and funds deposited in accounts may not be considered the user's own property in a bankruptcy scenario. It is important to understand the legal and financial implications of using cryptocurrencies and funds deposited in accounts, and to be aware that these assets can be subject to bankruptcy proceedings.
From my point of view, the FTX platform went bankrupt due to a combination of factors, including inadequate capitalization, low liquidity, and a lack of regulatory oversight. The platform was not able to sustain its rapid growth without proper capitalization and liquidity. Furthermore, without proper oversight, the platform was exposed to various types of risk, such as fraud and market manipulation.
I found out about the bankruptcy of the FTX platform through news reports. The other consequences of this accident include the loss of investors' funds and the closure of the platform. Additionally, the incident has caused a great deal of reputational damage to the company, as well as to the wider cryptocurrency industry. This has resulted in increased scrutiny and regulation of the industry, as well as decreased public trust in the sector.
The worst thing that could happen to cryptocurrency after the FTX incident is if a significant number of people lose faith in the technology and decide to stop trading. This could lead to a steep drop in the price of Bitcoin and other cryptocurrencies, as investors lose confidence in the market. Furthermore, it could lead to tighter regulation of cryptocurrencies, as governments are likely to step in and try to protect consumers. This could have a negative impact on the growth of the industry, and could potentially lead to a decrease in the number of people investing in cryptocurrencies.
Yes, this incident could reinforce the view that cryptocurrencies are outdated and unstable due to the lack of collateral. It is important to remember, however, that the incident was an isolated case and not representative of the entire cryptocurrency market. Additionally, cryptocurrencies are only a few years old and are still evolving. While they may not have the same collateral as state currencies, there are still many advantages to using cryptocurrencies, such as their decentralization, low transaction fees, and fast transaction times.
Binance's decision to purchase FTX could potentially reassure previous investors of the platform, as it signals that Binance is committed to the success of FTX. However, it is difficult to predict the future of the FTT cryptocurrency. The success of the coin will depend on the continued success of the FTX platform, as well as the overall state of the cryptocurrency market.
Overall, users should be aware of the risks associated with centralized cryptocurrency exchange platforms before using them. It is important to be aware of the potential issues and take steps to protect yourself, such as using two-factor authentication and using a secure wallet. In the end, it is up to the user to decide if the benefits of using a centralized exchange outweigh the potential risks.
Thanks to all for reading.
Good effort from your side but I thought you come to know about FTX and FTT collapse too late, as the news reports took time to be published so if you have any FTT holding you haven't found to exit.
Centralized Exchanges are no doubt risky but most users choose them because they don't have proper knowledge of Crypto and they don't want to study and then they find decentralized Exchanges difficult to use.
Good luck brother in this contest please visit my post too
Dear @joynalabedin,
Your knowledge about the current situation of the market is very good. Your post is very informative. There is no doubt in saying that bankruptcy of the FTX exchange has made many challenges for the investors as they are now afraid of investing in them.
Centralized Exchanges are under the control of the respective country and there is no as such privacy of the private keys to make the funds secure and private. So, the decentralized exchanges are always best option for holding assets.
I wish many success for you in this week of the contest.
Thank you
You have presented a good post and your efforts in making this article are highly appreciated.
Bankruptcy of the FTX exchange platform is a very big question of trust on the cryptocurrency as most of the investors are now afraid of keeping their investment or investing more in this type of risky market.
Yes brother, this is one of the major problem that the cryptocurrencies have to face right after this incident. Although, we strongly believe that the market will make a positive turn very soon but the users losses cannot be easily regained.
Thanks a lot for sharing your understanding with us. Good luck bro. 🤞
The FTX incident was as a result of Centralized, given the fact that users were not having access to their funds. Instead, the funds are store on one place by the centralized authority.
I prefer decentralized exchanges, as it offer a number of advantages compared to centralized exchanges. As they are not controlled by a central entity, user funds are not held in a central repository and are instead stored on a distributed ledger, which is far more secure.
Thanks for sharing and goodluck in this contest.
@joynalabedin
You did well in explaining your topics well. They where really so interesting to hear you talk about a whole lot of things. But I was captured by this.
You basically, gave us a great reason for the bankruptcy and these where actually true as a slack on the path of company to stabilize instruments of capitalization, striking a balance on regulation mechanism and appropriate check on the liquidity pool as constituted to the bankruptcy of the FTX. keep up the good work. I would love to see your next publication in the cryptoacademy engagement challenge too #steem-on