First of all, I’d like to preface that CeFi isn’t the same as TradFi. CeFi has no bailouts, no funds for investing clients, and who knows how they control withdrawals.
In light of the FTX scandal, we’ve discovered that there is no fair play in CeFi. FTX has given all of us a masterclass in Money laundering, corruption, and the whole nine yards. Don’t get me wrong, with DeFi, we do get scams too. The difference is, however, that people can independently check these protocols and make sure that everything is operating as honestly as the devs claim. FTX screwed over a ton of users and now that fact cannot be disputed, but I always knew that CeFi does not equal safety, far from it, in fact.
With decentralization, we get high staking APYs and high farming APRs, assuming that you’re using a trustworthy project, heck, we even have stablecoin farming with decentralized solutions.
I’m personally part of the “DeFi can be audited by anyone, so assuming you know what you’re looking at, it’s a better option than CeFi”.
This brings me to my question: has this news changed the way you view the CeFi vs DeFi debate? Or are you still of the mindset that CeFi is a relatively safe option?
I’m team DeFi all the way. New protocols are created every day and innovation will never come from CeFi. My latest toy is a farming hub called FlatQube, I believe in stablecoins the most and it supports the highest stablecoin APR. I get to safely store my stablecoins and I get profit along the way. Always DYOR when picking projects. This is just my personal opinion, no investment advice here.
CeFi crashes have opened my mind about getting full access to my assets by moving it into DEX wallets like Trust Wallet. Right now, I’m also looking at permisionless and no gateway launchpads like Polygen to host more innovative projects to do their token offering.
Abstainfromcex.com
Neither is relatively safe as they both have risks, but Binance is pretty strong despite the FUD and withdrawal spree that the platform is experiencing. Still, I’d rather move my assets into a cold storage and maybe keep some to buy BTC at low prices, while I read more about DEX platforms like AshSwap.
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