Be alert to the risk of "thunderstorm and bankruptcy" of centralized exchanges
Two days ago, Biter Exchange was defended and the photos of being investigated by the police were circulated on the Internet. Biter is a relatively old exchange in the industry.
The reason why this exchange fell into this turmoil was that the exchange launched a DeFi token called Kimchi. After participating in the kimchi transaction, many users not only failed to make money but suffered losses. Therefore, many users suspected that the exchange had done something ulterior, and then called the police. The news triggered a wave of withdrawals by a large number of users. It reflects that the coin cannot be withdrawn normally.
In my previous articles, I have written that the first of this DeFi wave is to revolutionize the life of centralized exchanges. In the DeFi ecosystem, whether it is buying popular project tokens or participating in various types of mining, it can be done on decentralized exchanges. Users no longer rely on centralized exchanges as strongly as before, so centralized transactions The traffic flow of the institute has been greatly reduced, and the operation has experienced a serious situation.
Although decentralized exchanges are still unable to attract a wider user base due to user experience and other reasons, if this trend continues, it will definitely take away a large part of the traffic and transactions of centralized exchanges.
The entire centralized exchange occupies only so much market, and now it is facing the threat of being robbed of a considerable part of traffic by decentralized exchanges. This will first affect the second- and third-tier exchanges that are already in a weak position. So can't stay out of it.
As a result, various exchanges have launched self-rescue activities. On the one hand, it is to trade various DeFi tokens as soon as possible, and on the other hand, it is simply to launch mining activities by itself.
but
butAre these DeFi tokens listed on centralized exchanges all high-quality projects? I'm afraid not necessarily. Especially as other public chains start to join in the fun and issue DeFi projects in their own ecology, we will see more and more tokens appear. More than 90% of these tokens have almost no innovation in my opinion. They are completely imitated by Ethereum, and many of them have not even been audited. The possibility of thunderstorms is extremely high.
It is worth noting that in this incident, many users reported that the exchange has been unable to withdraw coins normally. The incident that Biteer broke out this time is that there was a problem in the currency trading. Such incidents will definitely happen in the future, and in this round of centralized exchanges to grab traffic, there will definitely be quite a few secondary exchanges. Third-tier exchanges closed down.
In addition, before trading tokens, investors can go to several large decentralized exchanges such as uniswap, balancer, etc. to see if there are related transactions on them. If these decentralized exchanges have the tokens you want to buy, you can just buy and sell them directly, and there is no need for decentralized exchanges.
