Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
Yes.
It's still that there are many people that do keep their funds on exchanges. And they don't know until when an issue about them is going to pop just like what happened for FTX.
While there's no issue yet, they're just leaving it there as if there's really no problem at all. But it's true that, you never hold your keys there if you allow them to keep it for you.