Investment advisers should avoid trusting asset holdings on exchanges because the sourcing service cannot be fully trusted even though the exchange's rating is highly reputable. FTX has proven how badly created exchanges are as a sourcing and crypto asset sourcing service and many other scam exchange services, so avoid storing assets on exchanges and switch your investments to a personal wallet that you can fully manage.
FTX is a living example of how dark the game can get so many of us fall victim to their greed. trust in centralized exchanges is now decreasing and all investors are competing to withdraw their assets to make them safer. At first they look good and become the most trusted, in the end they will betray customers with greed and misuse of customer assets. FTX is a small part of the ugliness of centralized exchanges and this makes customers even more careful.
How about Binance? Are people quitting the use of this reputable exchange already?
I understand that people have a bad view of CEX now but still see people using CEX till now. However, their way of understanding is different, and be careful about depositing and keeping their money in them. I'd see Binance having no excuse about it and traders being also doubtful about the safety of their funds, quite it changing a lot after the FTX issue. Perhaps, it gives learnings to all of us and it badly affects the entire market.
Binance is heavily involved in all the crisis and the exchange have also received a legal invitation and investigation on money laundering, and if care is not taken CZ and his team may be heavily investigated and a possible charges may follow.
This whole event in the cryptocurrency industry has been triggered by centralized exchanges and projects that have failed their investors, and also betrayed the trust and their reputation. Except there is a high presence of corruption in the legal processes if not, no e of the CEOs will escape the law in the long run.