- Investors turned to non-custodial platforms after FTX collapsed.
- On November 11, the day FTX filed for bankruptcy, Uniswap, a major DEX, saw a large surge in trading volume.
Following the FTX collapse, a wave of crypto exchanges failed or filed for bankruptcy, driving investors towards non-custodial platforms.
The Benefits of FTX Faisco
The age-old story of managerial haughtiness, excessive risk-taking, poor regulation, and risk management can be used to explain the startling demise of FTX. The catastrophe has, however, also given us more information on which to think regarding the value of risk management leadership and culture.
DeFi Use Is Growing
More than 350,000 Bitcoins have been withheld from cryptocurrency exchanges since November 2022, while 260,00 BTC have been removed from same markets, according to data collected from Santiment, a behaviour analysis platform.
Many users have taken their cryptocurrency holdings out of exchanges and are now trading their money using non-custodial options. One of the biggest decentralised exchanges (DEX) in the ecosystem, Uniswap, had a significant increase in trading volume on November 11, the day that FTX filed for bankruptcy.
Although the developing ecosystem of DEX platforms may be subject to its own distinct set of dangers and vulnerabilities, watchers of the market feel that with sufficient due diligence and the elimination of human error, DEX platforms may soon be preferred over CEX platforms.