EDUSELL
Financial Market Examiner
Midas Crypto Vault
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
Financial Market Examiner
No Result
View All Result
Home Crypto News

Centralized Crypto Exchanges Will Remain Dominant Despite FTX Collapse

Admin by Admin
November 29, 2022
in Crypto News
0
CFTC Commissioner Says Congress Must Order Crypto Regulators To Cooperate
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter
Webinar Webinar

Centralized exchanges will continue to control the majority of global digital-asset trading volumes, JPMorgan said, contradicting some crypto-native experts who expect a shift toward decentralized platforms in the wake of FTX’s collapse.

Decentralized exchanges (DEX) have slower transaction speeds, pooling of assets, and order-traceability features that are likely to limit institutional participation.

The analysts also cited the absence of a limit order/stop loss feature on DEXs, their dependency on price oracles that source data from centralized exchanges, vulnerability to hacks, exploits, the need for over-collateralization and systemic risks from the cascade of automated liquidations as hindrances to widespread adoption.

Risk/return trade-off is more difficult to assess in Defi (decentralized finance) given the use of different tokens in terms of assets borrowed or lent/collateral posted/received interest payments and given the general absence of limit order/stop loss functionality.

The management, governance, and auditing of Defi protocols without compromising too much on security and centralization is a big challenge.”

Since Sam Bankman-Fried’s centralized exchange FTX went bust, activity on decentralized exchanges has picked up, with DefiLlama data showing trading volumes on decentralized platforms up 68% to $97.22 billion this month from October, the highest since May.
Many observers read that as a sign of waning confidence in centralized exchanges and the beginning of a long-lasting shift to democratized finance.

With users’ confidence in [centralized exchanges] shaken following the collapse of FTX, and the resilience DEXs have shown to the contagion in the market, we expect increased adoption of DEXs in the coming months among market participants.

While acknowledging the recent uptick in DEX trading volume, JPMorgan doesn’t think it’s the start of any kind of sizable long-term trend.

While there has been some increase in the share of DEX in overall crypto trading activity in recent weeks, this is more likely to reflect the collapse in crypto prices and the deleveraging/automatic liquidations that followed the FTX collapse,” the bank’s analyst team said.

Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share
Tags: CryptoFTX
Institutional Trading Concept Institutional Trading Concept Institutional Trading Concept
ADVERTISEMENT
Previous Post

EUR/USD Clings to Recovery Gains Below 1.0400

Next Post

U.S Crypto Exchange Kraken Settles With Treasury Department

Admin

Admin

Next Post
Kraken Starts Withdrawing All Staked Ethereum (ETH) Amid US SEC Pressure

U.S Crypto Exchange Kraken Settles With Treasury Department

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • 99 Subscribers
  • Trending
  • Comments
  • Latest
yen and dollar

FOREX-Yen Flirts With Intervention Level As Dollar See Gains

October 11, 2022
AUD USD pair

Forex: AUD/USD Point To More Downside For The Aussie

October 20, 2022
Mayowa Owolabi on battles traders need to fight

Battle Every Trader Must Fight (Part 1)- Mayowa Owolabi

August 31, 2022
Meta (Ex-Facebook) Fined €1.2 Billion In Landmark EU Ruling

Meta Verified Shows A Company Running Out of Ideas

February 22, 2023
XAGUSD pair

XAG/USD Climbs to Mid-$19.00s

4
Premier League Considering Partnership With NFT Crypto Platform

Premier League considering partnership with NFT crypto platform

2
EUR/USD pair

EUR/USD Recovers from 20-year Lows

2
Binance CEO Supports Terra Classic Raising LUNC Burn Tax To 0.5%

Binance Proof-Of-Reserve Pledge Earns Support Following FTX Crisis

2
Crypto withdrawal by Nigerians CBN

Why The CBN Will Not Allow Nigerians Withdraw Crypto From Commercial Banks

June 2, 2023
Mercedes Benz To Release NFT Collection With Fingerprints DAO

Mercedes Benz To Release NFT Collection With Fingerprints DAO

June 2, 2023
Gate.io Sees $150 Million Net Outflow Amid Police Investigation Rumors

Gate.io Sees $150 Million Net Outflow Amid Police Investigation Rumors

June 2, 2023
Hackers Steal 13 NFTs On Blur As Global Sales Rise

Hackers Steal 13 NFTs On Blur As Global Sales Rise

June 2, 2023

Recent News

Crypto withdrawal by Nigerians CBN

Why The CBN Will Not Allow Nigerians Withdraw Crypto From Commercial Banks

June 2, 2023
Mercedes Benz To Release NFT Collection With Fingerprints DAO

Mercedes Benz To Release NFT Collection With Fingerprints DAO

June 2, 2023
Gate.io Sees $150 Million Net Outflow Amid Police Investigation Rumors

Gate.io Sees $150 Million Net Outflow Amid Police Investigation Rumors

June 2, 2023
Hackers Steal 13 NFTs On Blur As Global Sales Rise

Hackers Steal 13 NFTs On Blur As Global Sales Rise

June 2, 2023
Financial Market Examiner

Get all the latest Financial Market (Crypto & Forex) news, updates and other relevant resources here.

Follow Us

Browse by Category

  • Crypto News
  • Education
  • Entertainment
  • Forex News
  • Gaming
  • Review
  • Reviews
  • Stocks
  • Uncategorized

Recent News

Crypto withdrawal by Nigerians CBN

Why The CBN Will Not Allow Nigerians Withdraw Crypto From Commercial Banks

June 2, 2023
Mercedes Benz To Release NFT Collection With Fingerprints DAO

Mercedes Benz To Release NFT Collection With Fingerprints DAO

June 2, 2023

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

?>