Post
Topic
Board Altcoin Discussion
Re: After FTX collapse, some call for a return to decentralized roots
by
Sayeds56
on 30/11/2022, 18:24:53 UTC
Neither we should trust DEX smart contracts to store them for too long time. As at least when we trust CEXes, they get sued after messing up, You can't sue a faulty hacked smart contract. And what comes to praising decentralization in general, it almost always has centralized elements. Like wrapped btc that just got depegged supposedly because of Almada Research minted it a lot.
DEX also cannot be fully trusted, because some DEXs are managed by scammers who will easily take our assets. As you said, no one can sue Smart Contracts if they commit fraud and take the assets of the users, they will just disappear. In contrast to CEX which will be demanded by its users directly. The main security is actually in its own use. they must be aware that crypto is very risky, and must be really good at keeping their own assets safe. A personal wallet is a safe place that can be managed alone.

You are absolutely right, CEX or DEx, none of them is prone to risk, either DEX or non-custodial wallets are not 100% secure, so many incidents have been reported in media about hacking of investors' money was stolen by DEFIs as well online wallets were hacked. Big exchanges like Binance and Coinbase have reliable security system as well as funds are protected by insurance cover.