Until recently all crypto exchanges had to be scams. They can only profit by selling/loaning customer funds or by trading with a dishonest advantage by being th

Until recently all crypto exchanges had to be scams. They can only profit by selling/loaning customer funds or by trading with a dishonest advantage by being the house. If an exchange was profitable, and they all were, it was because it was a scam. This is the same analysis that shows that Tether is a fraud. If they took a dollar for every dollar token sold and then paid to store those dollars as collateral they'd be losing money, and would have no profit because they sell $1 for $1. They are wildly profitable though which proves that it's from crime because their base model has zero profit. Recently though, the last few years, you can loan crypto for zero time and with zero risk in a process called a flash loan. You structure a single transaction to borrow funds, spend those funds and profit, and return those funds with interest. This actually allows an exchange to use user funds without risking them. Hopefully we're done with centralized exchanges though, because even if they can be made possible they can never actually be made safe for the users.