Bitcoin Platform CEO Nov Waves cryptocurrency Binance Bitcoin

Cryptoverse: Let's talk about DEX, baby

Reading now: 779

As the crypto castle crumbles, some true believers say the answer is to double down on DEX. Decentralized exchanges, that is.The spectacular collapse of Sam Bankman-Fried's FTX, a major centralized crypto exchange, has unleashed a wave of calls for more regulation from mainstream bankers and investors.By contrast, some crypto players are channeling bitcoin creator Satoshi Nakamoto's original crypto vision by cutting out the financial middleman and taking to decentralized exchanges, where investors trade peer-to-peer on the blockchain.On Nov.

10, as FTX imploded, overall daily trading volumes on DEXs including the likes of Uniswap leapt as high as $12 billion, their highest level since May, according to data from market tracker DeFi Llama, though they have since pared gains.Four days later, November volumes had surpassed the whole of the month before, according to CryptoCompare.Meanwhile, weekly bitcoin flows from centralized exchanges, or CEXs, recorded their largest-ever net outflow, with 97,805 coin moved off platforms in the seven days to Nov.

13, CryptoCompare data shows."It is now clear that there can be risk associated with holding assets in a centralized entity," said Varun Kumar, CEO of decentralized crypto exchange Hashflow. "Data is showing that users are turning to decentralized trading solutions."Nonetheless, DEXs are not necessarily safer than their centralized rivals, with inexperienced investors potentially exposed to huge risks.Users trade tokens directly with each other using blockchain-based smart contracts instead of passing funds through an intermediary or central authority.Thus, as with other platforms in the world of decentralized finance (DeFi) or Web3, there is no central oversight and - for good

The website is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News