4 ms·
It's funny you mention FTX, because FTX was exactly the opposite of a decentralized exchange. It was a centralized exchange that was unambiguously under the ju
by Kranar 4y ago
It's funny you mention FTX, because FTX was exactly the opposite of a decentralized exchange. It was a centralized exchange that was unambiguously under the jurisdiction of the SEC.
One of the major advantages of using a decentralized exchange is to avoid the risk that centralized exchanges like FTX expose you to, namely that it's a single point of failure that when collapses ends up taking a lot of people down with it.
With a decentralized exchange, your transactions happen within a matter of minutes and your only exposure to any potential failure is during those minutes.
- anonymouskimmer 4y ago> With a decentralized exchange, your transactions happen within a matter of minutes and your only exposure to any potential failure is during those minutes. I thought many DXes operated by people effectively parking tokens in them for long periods of time so that others can come by and trade for those tokens (otherwise you'd need a way to sync up people who want to trade). The credits received for parked tokens can be redeemed for any token at the exchange, but during the possibly extended period of time you're holding a credit instead of holding a token, you can lose it all if the DX is compromised.
- Kranar 4y agoYou are correct, but as I mentioned in my post, transactions happen within a matter of minutes on decentralized exchanges.