The community negatively views centralized exchanges due to the recent FTX saga, as Exchanges try to prevent FUD amidst fears of contagion.
It is a challenging phase for centralized exchanges as they try to reassure their users that the funds are safe with them. However, amidst the recent events, the community finds Decentralized exchanges as a safe haven.
Crypto.com released its Proof of Reserves that revealed the exchange holds nearly 20% of its reserves in Shiba Inu. From the on-chain data, the community discovered many unusual activities by the exchange that plummeted the price of its native token CRO. There is speculation that Crypto.com might turn out to be the next FTX. The YouTuber and crypto influencer Ben Armstrong has withdrawn all his funds from Crypto.com
Investors are taking their cryptos off exchanges
There is a fear amongst crypto investors that their preferred exchange might go down the path of FTX. Influencers are suggesting their audience withdraw from exchanges.
People are withdrawing their crypto from centralized exchanges and storing it either on software wallets like MetaMask and Trust Wallet or on their hardware wallets. The Google search for the term ‘hardware wallet’ is at a 90-day high.
Exchanges assure users that the funds are safe.
During this challenging phase, exchanges do various activities, such as releasing Proof of Reserve (PoR), audit reports, etc., to assure transparency. Gemini has sent a letter assuring that it had no exposure to FTT tokens or Alameda. Coinsquare has sent a similar letter assuring its Canadian users that their assets and liabilities are met 1:1 and that it conducts an annual financial audit to confirm the same.
Bittrex clarified in a Twitter thread that it does not lend or lock up customers’ assets. ByBit also explained that it does not have a trading desk; the revenue comes only from the trading fees. It announced signing a contract with a reputable auditor for PoR.
Phemex also commented on the situation, announcing plans to release a Merkle tree PoR by next month.
Got something to say about centralized exchanges or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on Tik Tok, Facebookor Twitter.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
Source link .