Place/Date: - January 10th, 2023 at 9:54 am UTC · 3 min read
Source: Snowfall Protocol
Following the industry-defining collapse of FTX and instability at another cryptocurrency exchange, Kraken, cryptocurrency users are looking for alternatives. These unimaginable events have created a new opportunity for DEXs like Snowfall Protocol (SNW) and Uniswap. What is unique? Opportunity, and are these DEXs competent enough to take control? Let’s find out.
After the fall of FTX, there was a school of thought that unregulated and decentralized finance will continue to deal with fraud and money laundering issues. However, it is important to realize that what happened to cryptocurrency exchanges was not a fundamental flaw in the technology, but in how they were managed. Like all exchanges, FTX was run by a small administration at the top. In fact, it was a one-person show. Once power is concentrated, the likelihood of its abuse becomes high.
A misjudgment by the person in control can bring down the entire market. Even when exchanges appear to be in trouble, DEXs like Snowfall Protocol (SNW) and Uniswap, which operate on the same decentralized finance principles, still function just fine.
In a DEX like Snowfall Protocol (SNW) or Uniswap, it is impossible to launder funds without the knowledge of the blockchain participants. In the case of FTX, billions of dollars were moved without the knowledge of investors. However, with a DEX, every single transaction can be tracked on the blockchain. DEXs like Snowfall Protocol (SNW) and Uniswap offer a suitable solution to correct the current confidence deficit in the crypto market.Snowfall Protocol (SNW) has already earned the trust of the general public with its clear communication and transparent operation.
This is why there is so much interest in a cryptocurrency yet to be launched.
While moves like mandatory KYC are being taken in the name of user protection, the collapse of FTX shows that they cannot protect users from such scams. Anonymity is also one of the main reasons why some people invest in crypto. For them, the regulations requiring KYC documents from users defeat the purpose of owning crypto. This could also be a reason for the recent surge in popularity of DEXs.
Crypto users have repeatedly been let down by centralized exchanges. DEXs like Uniswap and Snowfall Protocol (SNW) allow them to get back to basics. You interact directly with traders, transactions are carried out quickly and omnipotent administration is not required. up.
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