Investors are turning to noncustodial platforms as a result of FTX and other centered services collapses in 2022. Investors are beginning to wonder if there is a way to secure their assets while they are present on crypto-trading platforms.
They have also expressed serious worries about the decisions that are made by the company’s management without enough basis or checking procedures.
The statistics before the FTX collapse
The crypto assets that a customer had deposited into FTX’s account, which held $1 billion, were discovered to be used by the exchange to lessen its own financial losses.
In addition, a late report claims that almost one and a half Bitcoin tokens have been permanently lost as a result of the failure of many cryptocurrency trading services in the course of the past ten years.
BTC investors, who were already losing faith in the centralized exchange companies, were thrown into a panic when FTX’s bankruptcy filing revealed unethical practices.
In the light of the scandal, trader’s leakages reached all-time highest levels of more than one hundred thousand BTC a month, and investors are now gravitating to the self-regulating and redistributed financial management services due to their lack of confidence in centralized exchanges (CEXs).
The new way to trade
Clients have taken financial deposits out of cryptocurrency traders and used a new way to trade, that is more stable and secure. Among the biggest trading services, Uniswap, saw an important increase in exchanging levels on November 1. 11.
This was the moment FTX declared bankruptcy. DEX service has experienced a noticeable rise in trading activities as a result of FTX’s breakdown working as a stimulant.
Merely seven day ago, Uniswap recorded a full day trading level of over $1 billion, outpacing lots of centered traders during that time period.
The trading volumes on the different trading platforms has increased significantly, according to Palmswap’s main production development leader and co-creator Bernd Stöckl. Due to the failure of FTX, DeFi usage will undoubtedly increase.
In the future, even more investors might choose using the De-Fi services as they are considered to be more stable and secure.