Downfall of FTX Exchange and What exactly is it?

1. Cascading effect – One thing is that the worse is not behind us. There will be a cascading effect just months after Luna’s crash. We heard the news about Celsius and Voyager’s platforms falling apart.

2. The advocacy for proof of funds – The entire crypto industry is not rooting for centralized exchanges to share the proof of funds.

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3. More exchanges could fall – I would not be surprised if we see more crypto exchanges fall because of this scenario. The best thing you can do is to move your funds to your private wallet.

4. Rise of DEX’s – This new scenario will lead to the rise of decentralized exchanges, and we will see an uptick in the growth of user activities.

5. More regulations – Well, FTX downfall not only impacted big money, but it also impacted retail users like you and me. And this will call for tighter regulations to save innocent users from burning their hands.

The FTX downfall was unexpected, and news of many VC funds and investors losing their deposits on FTX exchanges is still coming out.

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For the funds you will be hodling for an extended period (ex: BTC, ETH), move those to a hardware wallet like Ledger Nano X or Trezor.

Pay special attention to the DeFi projects tokens, which might capture the benefits of the new influx of users.

Well, FTX downfall not only impacted big money, but it also impacted retail users like you and me.

If you don’t have a hardware wallet and have an iPhone, you can use the Trust wallet (less secure than a hardware wallet).

Why should you withdraw funds from all centralized exchanges? The FTX downfall was unexpected, and news of many VC funds and investors losing their deposits on FTX exchanges is still coming out.

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