The entire situation with centralized crypto exchanges can be summarized in one sentence.
"We can't live with them, we can't live without them."
We can absolutely live without them. I have never once used a centralized exchange in my entire life, and yet I would wager that I am more involved in the bitcoin ecosystem than 99% of other bitcoin users given that I use and spend bitcoin as a currency almost daily. Yes, we might not see the same fiat denominated prices without centralized exchanges, but bitcoin itself does just fine (better, in fact) without them.
But I don't see a reason why anyone would move to another wallet from Coinbase since they are better regulated.
It means nothing. Every exchange is as risky as every other exchange. The only safe place for your coins is your own wallet.
With the happenings around the world on Crypto exchanges, one would ask if truely blockchain is decentralized?
"Blockchain" isn't a single entity. Bitcoin is decentralized. Centralized exchanges are not. Most altcoins are not. If your money is in altcoins or on centralized exchanges, then you are liable for large losses. If your money is in bitcoin and in your own wallet, then you are quite safe.
Well at that time there were only investigations on Tether and Tether never collapsed.
I still find this highly surprising, given that it was 100% proven in court documents and filings that Tether is fractional reserve and do not hold nearly enough assets to cover all outstanding USDT. And yet for some reason they continue to attract new users.