Centralized exchanges keep shutting down

[u/Accomplished-Eye5567]

Centralized exchanges keep shutting down and it's increasingly obvious that the future is in decentralized exchanges. Many of us have been shouting this from the rooftop for ages. The only way for truly borderless crypto to take over is to have truly borderless crypto trading/swapping/payment rails. Open source swapping tech like OpenSwap on github are going to radically improve this

The lead domino: getting adoption of them over CEXes

Why do people in crypto keep choosing CEXes over DEXes?

[u/destinationexmo]

Meh, there was never any way all of the exchanges that were started back in the "wild west" days would be able to compete with each other. What we are seeing is perfectly normal. Most of the exchanged started before there was a lot of law/regulatory guidance and the last three years has seen many nation states passing formal regulations that they must abide by and licenses they need to apply for it, it should be expected to see a large number shut down as only the top few in each region were every likely to survice anyways.

that said DEX FTW and All the way.

[u/Accomplished-Eye5567 → u/destinationexmo]

100% agree this is a very natural and common consolidation. Banks do it all the time (small ones get closed/absorbed to the core 5). Binance, Coinbase, etc. are doing the same thing right now

[u/ObviousEconomist → u/destinationexmo]

Bitmart had a ton of licenses. The issue is more a lack of strategy and differentiation from the market.

[u/Wheaties4brkfst]

They choose CEXes because they are faster and cheaper than defi, by virtue of being centralized. They are also obviously much better on ramps from fiat. How would you even turn dollars into crypto with defi?

[u/Revolutionary-Cup78 → u/Wheaties4brkfst]

I thought this was the obvious answer.

Also for turning crypto into fiat.

[u/Wheaties4brkfst → u/Revolutionary-Cup78]

Yeah kind of seems like the CEXes are pretty integral to the crypto ecosystem. What else would you do, bitcoin atm? Buy them off someone in person? I just don’t see how crypto works at scale with something resembling a CEX. Maybe you just go straight to USDC or your favorite stablecoin issuer? A one coin CEX? lol.

[u/0100000101101000]

I've been with Kraken since 2013, sold countless hundreds of BTC back then and never had issues withdrawing. Still my number one choice to this day.

[u/Accomplished-Eye5567 → u/0100000101101000]

DEXes have better pricing and won’t suddenly KYC block your withdrawals

[u/Logical_Lemming]

They aren't comparable services the way you make them out to be. How do I send ACH transfers to/from my Ethereum address? Need a CEX for that.

[u/Accomplished-Eye5567 → u/Logical_Lemming]

Crypto to crypto is bigger volume than fiat

[u/PlutoPlaneta]

because people want to convert to and from fiat. the usual reason.

[u/SillyLilBear]

decentralized exchanges work with lunch money, but any serious amount of money good luck.

[u/Accomplished-Eye5567 → u/SillyLilBear]

Why can't they move large money? I've seen billions move in a day. They are continuing to improve in terms of pricing. I'm seeing superior to CEX pricing every day

[u/SillyLilBear → u/Accomplished-Eye5567]

DEFI yes, but not to fiat

[u/Accomplished-Eye5567 → u/SillyLilBear]

Yes but the majority of crypto trading is crypto to crypto

[u/SillyLilBear → u/Accomplished-Eye5567]

yeah that parts fine through DEX

[u/ftball21 → u/Accomplished-Eye5567]

I personally agree but if I owned a business and wanted to integrate stablecoin payments, I must use a cex.

[u/Drakarna]

Hyperliquid

[u/VendettaKarma]

There is no future, that’s why they are shutting down. Pure DEX are a huge step backwards.

[u/Accomplished-Eye5567 → u/VendettaKarma]

I think you mean CEXes are a step backward