Can we still safely buy coins on centralized exchanges?
Recently, the three major exchanges OKEx, Binance, and Huobi have all been questioned by the public and have attracted widespread attention. However, the first damaged OKEx has not yet opened the coin withdrawal function, which reminds me of two problems: centralization Is it safe to buy coins on exchanges? Can we still buy coins on centralized exchanges?
First, let us review the problems that have arisen in the three major centralized exchanges:
OKEx: At 11:00 on October 16, OKEx began to suspend coin withdrawals, and then it was revealed that the founder Xu Mingxing was taken away by the police at least a week ago because of money laundering.
At 20:00 on October 21st, fiat currency transactions will resume.
The BCH leveraged currency loan function will be stopped at 11:00 on November 8, currency and margin trading services will be suspended at 17:00 on November 14, and the recharge business will be suspended at 18:00 on the same day.
Binance: "Forbes" published an investigative manuscript titled "Leaked "Tai Chi" Documents Reveal Binance's Elaborate Plan to Evade Bitcoin Regulators", claiming that Binance had designed a series of decentralized U.S. regulations in 18 years Detailed strategies for agency attention to evade U.S. regulatory scrutiny.
Huobi: On the evening of November 2, data showed that Huobi transferred a total of 100 million USDT to Bitfinex in 10 transactions (10 million USDT each), and then HT began to plummet. The market reported that Huobi’s No. 2 figure and COO Zhu Jiawei was under investigation .
I won’t go into details about some small exchanges. These incidents all show that the national supervision is gradually improving, and the requirements for centralized exchanges are more stringent.
Seeing this, some people may ask, can centralized exchanges still be used? My answer is yes. Since the explosion of Uniswap, the coexistence of CEX and DEX has been a hot topic among bigwigs. Although DEX is easy to use, it cannot be concluded that it will replace CEX.
The high operating threshold of DEX prevents some users from entering directly, and even some veterans in the currency circle have paid the "registration fee" when they first tried uniswap, which makes DEX appear unfriendly when facing new users. This is one of them.
DEX is currently mainly used for applications on Ethereum. It does not support digital currencies established on non-Ethereum systems such as Bitcoin, TRON, and Polkadot. This is the second.
If the slippage of a new currency is too high when the DEX goes online, the transaction will fail, and the gas fee will be charged as usual. The mentality of investors has collapsed, which is the third.
Conversely, these shortcomings of DEX are also the advantages of CEX. They have their own advantages and disadvantages, and they can complement each other. This is exactly what the market needs, so they must coexist, and it is not one who replaces the other.
At present, the three major exchanges are facing regulatory issues one after another. As I mentioned before, it is safest to deposit in the wallet. It is recommended to use imtoken or metamask, which are more secure and practical.
However, there is an interesting piece of news that the FTX centralized exchange has launched the equity tokens of 6 well-known companies such as Apple, Tesla, Google, Amazon, and Facebook, which indicates that a new form has emerged in the market. It is to embrace the traditional equity institutions, combine the data on the traditional equity exchanges with the blockchain, and stop talking about inside and outside the circle.
However, this is just a way of thinking for us. At present, there are only 6 companies listed on FTX, and they can only pay in US dollars. There is no actual combination with stablecoins. How the future progress will be seen after the US election Market conditions, this is also a concern of many people.
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Welcome to pay attention to the public account [Xiao Zhang talks about blockchain], which will continue to bring you content updates in the blockchain field.
