Users swap to DEX platforms as Centralized Exchange FTX meets demise
FTX collapsed recently this November 2022 and with it a couple of billions of dollars along with buyer confidence for the crypto market at large. Experts believe that the effects of this FTX collapse is not yet finished and more and more companies will cry foul before this is over.
In fact, there was already allegedly a hacking incident involving $400 million worth of tokens and a token dump after that taking whatever recovery the market had after FTX collapsed with it, sinking ETH Ethereum to lower levels than cryptanalysts projected for November and December 2022.
What is FTX?
FTX is a centralized exchange where users deposit their money in order to trade.
FTX has been around for a few years and has its share of ups and downs but all of those meant nothing to the $16 billion collapse that happened November 2022 with CEO Sam Bankman-Fried even going to CZ of Binance, a direct competitor, to ask for help with its liquidity issues.
First CZ said he would help in a tweet he made. Hours later he tweeted the company was beyond CZ’s repair. Ouch, this caused the price of FTX to drop over 80% in value within moments.
Since Bankman-Fried was turned down by CZ of Binance and had to file for case 11 bankruptcy noone has seen the LP since. So where are the funds Sam?
Until today (December 2022), users of FTX still haven’t been able to withdraw their deposited funds and likely, they will never be able to do so, while former CEO of FTX, Sam Bankman-Fried, is still free.
This is the problem with centralized exchanges or CEXs, they take a custodial role and effectively take away your money so you can use their services.
As much as centralized exchanges want to act like banks, they are not.
Centralized exchanges like Binance, FTX, KuCoin, CoinBase, and Kraken are not as heavily regulated as banks and do not invite the backing of government agencies. This is why crypto was created as an alternative to banks and for those who wish to remain anonymous. Centralized crypto exchanges beat the purpose of anonymity.
What is a centralized exchange?
A centralized exchange is a place where traders (or account holders) can deposit their money in order to trade token pairs.
Centralized exchanges rely on this deposit as they need a lot of liquidity in order to facilitate trade, they take what’s called a custodial role or act as custodian for your money. This is nearly the same with all types of centralized exchanges, whether stocks or otherwise.
The humongous difference is that most other types of centralized exchanges are both backed and regulated by governments, governments that can either compensate users or prevent a collapse from happening in the first place.
Centralized cryptocurrency exchanges have the power of banks when it comes to user deposited funds but not the red tape that banks have. This means that centralized exchanges like Binance can literally run and take your money, prevent a collapse and all you can say is goodbye.
What is a decentralized exchange?
A decentralized exchange like Uniswap, Pancake Swap, and Toon Swap are also exchanges or a place for the users to trade token pairs. The big difference is that there is no need to deposit money on a decentralized exchange platform like Toon Swap.
Toon Swap does not take a custodial role, it facilitates a “trustless” and “permissionless” type of trading. This means that trades happen without the requirement of trust or permissions. Trades are executed by smart contracts and there are no intermediaries involved.
This is why trading on a decentralized exchange or DEX is ultimately more secure and private. It also usually means that there are lesser and cheaper fees since it doesn’t have the overhead that centralized exchanges or CEX have.
What is Pancake Swap?
Pancake Swap is a decentralized exchange (DEX) based on the Binance Smart Chain. It allows users to trade between different cryptocurrencies and tokens without having to trust a third-party exchange or custodian.
Pancake Swap offers unique features such as staking, farming, and yield generation. It also has its own native token, CAKE, which can be used for rewards and discounts on fees when trading on the platform. Furthermore, Pancake Swap offers liquidity pools that enable users to provide their assets in exchange for additional rewards.
Its user-friendly interface makes it easy for newbies to get started with cryptocurrency trading. Additionally, its low gas fees make it more attractive than other platforms that may have higher costs associated with transactions such as Binance and other centralized exchanges.
Pancake Swap started as a fork of the popular decentralized exchange, Uniswap. It has since grown to become one of the most popular DEXs in the space and is currently among the top 10 largest DeFi protocols by 24-hour trading volume. The platform is constantly innovating, introducing new features such as flash loans, automated market makers (AMM), and more. With its high liquidity and ease of use, Pancake Swap is becoming an increasingly attractive option for cryptocurrency traders looking for a secure and convenient way to trade digital assets.
Overall, Pancake Swap is a powerful decentralized exchange that offers users an easy-to-use interface along with unique features like staking, farming, yield generation, liquidity pools and more.
What is Uniswap?
Uniswap is a decentralized automated liquidity protocol that enables users to swap between Ethereum-based tokens, such as ERC20s and ERC777s, quickly and securely.
It provides an open source, trustless platform for token exchange without the need for traditional intermediaries like centralized exchanges. Uniswap utilizes smart contracts on the Ethereum blockchain to facilitate trades between two different tokens at predetermined prices.
This eliminates the need for custodians or middlemen when trading tokens, making it a more secure, efficient and cost-effective way of exchanging digital assets. Furthermore, Uniswap’s platform allows developers to launch their own token pairs with minimal effort, allowing them greater flexibility in launching new products.
What is Toon Swap?
Toon Swap is one of the biggest DEX or decentralized exchange projects for 2022. It offers a clean UI and a solid trading experience. Multiple experts and analysts believe that it will have a similar trajectory to Pancake Swap with its token, Toon Finance Token, which is quite cheap and currently on sale today, and crypto market experts say the token will have the value of at least $35 in the near future. At the moment the token remains under $1.
This is huge for all of those meme coin lovers out there. A meme coin DEX, this is the future of Defi. Pancake swap has been a huge success and users have been saying that the Ethereum network needs to have access to something similar. Toon Finance is it.
The token plans to add play to earn features and more. They have already added a swap to their platform so that users can exchange Eth for other tokens and more. This is more than any ICO project has accomplished prior to launch in a very long time.
This guarantees that the Toon Finance project is here to stay and they are going to have a great future. Anyone who gets in early has a really good chance of reaching 1000x gains similar to Dogecoin or Safemoon. Safemoon reached over 80,000x within 3 months. That is an enormous gain.
We cannot tell if this prediction holds water but Toon Swap will have features that simply separates it from its peers, making it better in a number of aspects compared to Pancake Swap and Uniswap. For example, it has similar features to Pancake Swap and Uniswap but it also has features of its own that so far, only it offers.
What makes Toon Swap a good investment?
Toon Finance’s Toon Swap is a decentralized finance project that is classified as a decentralized exchange. It allows users of its platform to trade multiple token pairs with lower transaction fees than centralized exchanges such as Binance.
Toon Swap has Space Farming that is a form of staking program similar to the best decentralized exchanges like Uniswap, Biswap, and Pancake Swap. But it also has a Space Bridge that will allow it to have multi-chain functionality, opening a lot of doors for both trading tokens and NFTs.
Toon Swap also has a P2E aspect that allows users to play and earn tokens by betting on game results. This aspect is incredibly revolutionary as it not only allows users to earn while they play, it also encourages massive amounts of token to move on the exchange. This makes it even more desirable for traders which make it more desirable for investors. Any token with a use case is an immediate watch-out-for, for a serious investor.
Now we see that centralized exchanges like FTX collapsing isn’t really a rare case, and truly, it is usually centralized establishments like FTX that cause a lot of the problems in the world of cryptocurrency. Former CEO of the bankrupt centralized exchange FTX, Sam Bankman-Fried, is still at large since it is easy for centralized exchanges like Binance to simply use their users’ funds how they like.
But there are decentralized exchanges like Toon Swap that make for a more secure way of trading, they do not require deposits as all trades are done via smart contracts. While there are a lot of decentralized exchanges, it is a good idea to take a look at Toon Finance, the maker of Toon Swap, since this project still has a lot of room to grow making an investment have higher returns.
Toon Finance Website and Presale links below :
Website: https://toon.finance/
Presale: https://buy.toon.finance/
Twitter: https://twitter.com/ToonSwapFinance
Telegram: https://t.me/ToonSwapFinance
CoinMarketCap: https://coinmarketcap.com/currencies/toon-finance/
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