Why DEX? Which DEX?
I’ve been withholding on you guys, all of you… DEX’s (decentralised exchanges) for those who don’t know are here to stay! But they are not all the same. Lets start by distinguishing from CEX’s (centralised exchanges Binance, Bittrex, Bifinex, Mt. Gox, Huobi, Okex, etc, etc). I apologise if I didn't list your crappy exchange and I say this because there are some facts most people don’t know and CEX’s sure didn't care for a long time. The motto was you pay you get listed (I really don’t care what happens next)! And on top of that the community will talk crap about the team which sometimes isn't that bad but seeing projects pay like 1/10 of their budget to get a listing… no comment!
There were a lot of attacks during this time and most of them (I’d say all but there are many ways to attack) were on CEX’s. By now pretty much everyone heard about Mt. Gox were 850000 BTC were stolen (in 2014) or the latest Zaif were some measly 6000 BTC were also stolen from the wallets from the exchange. So why do people keep using CEX’s? And lets face it, of those named not ONE wasn't HACKED they all lost funds from their clients and if 2 years ago I would say that it would be the users fault for not using 2FA… Sorry it’s not the case they all lack the security and not a single one of stepped up and said as much as “We are sorry!” Well if they don’t say it they mustn't mean it and as such they’re NOT sorry! Hell as far as I know could have been an inside job.
Now lets go for DEX attacks… yes they have those as well. EtherDelta someone managed to replicate the site and once one would input the private keys the hacker would grab them and well I guess you know the rest! All in all the result was not that profitable for the hacker (considering all the work) 305 ETH and some ERC-20 tokens and not for that many people because guess what? Unlike CEX’s EtherDelta posted a tweet warning people not to use the DEX! After a while they took out the DNS to prevent people to give the keys to the hacker. So just for a minute imagine if this same hacker decided to go after a top trading CEX where all the funds are together and ripe for the picking. Specially when you consider that most people don’t use 2FA to secure their accounts let alone a Ledger.
So lets do a brief exercise, take the money from the CEX hacks add the what was stolen from the DEX where would you put it if it were your money? Back in the CEX or move to one DEX?
Now for the reason I’m really talking about this
So Binance a CEX came out with a video (a second video) saying yet again that they’re going to launch a DEX! Well that should be good news, right?
It’s good news for me for I own BNB for a long time, almost from the start I believe, even some Ardor which was the building platform. But some question have to be raised! Like governance model? I have heard rumours about PoS BNB + PoS BTC/ETH, also if the CEX will keep on then this takes serious proportions! So what are you CEX or DEX and don’t say both because that would be the utmost disrespect for the entire crypto community but even more to everyone’s intelligence.
Switching to a working DEX
Most probably were hoping I say NEX! Sorry, not up yet! So Switcheo!
That’s right they've been running smooth for a while now and were the 1st NEO based DEX. They also have a partnership with trust wallet (somethings are too much of a coincidence) and they have been trading really nice. One could say that they’d lack the volume but if we consider the drop in the price of NEO that’s not really true because they trade almost 40% of all NEO (not even counting the NEP5's), and the volume is real unlike the volume of the CEX’s! They just had a security audit performed by ChainSecurity. They’re also the 1st Cross-chain DEX trading both NEO and ETH and they are planning fiat gateways on Q1 2019 yet as the others present a testnet and people go crazy I was like… Whoa… ok almost makes sense one works the other doesn't. And then I got thinking… maybe its the user interface… nahhh just check the pics…. one runs faster than the other… not so much. Then maybe it’s the model? Ok, one is centralised but both will use off chain contracts to secure the assets and so will NEX… The staking model? They both use a burn mechanism! And then it hit me… but it hit me like a rock… People want to get rich today! Hence they use CEX’s even if it means going broke and c’mon never mind ledgers, 2FA or any other security measure. It’s get billionaire or die trying?! And then we read those lovely posts “oh it doesn't have margin trading!” (really?!?) “I hate bitcoin its a scam”. Everyone crypto means your money, your decisions, your profit/loss. So always do your own research, don’t follow the herd because if you do… hello you’re name is… lunch!
So I’ll leave it up to you to be the better judge. The only thing I’m stating are the facts here. CEX’s = HACKED! DEX’s not even close! CEX’s Lots of volume some faked assumed by CEX’s. In a DEX they won’t be able to do that. Further more and the thing that seems more worrying here is that this Binance DEX seems almost a Non Profit. Yet the fees are higher you are thinking now… not to worry they just 100%. Because they’re still in testnet day 2… I wonder how much when they get to the end, which despite CZ saying is near lets rewind and remember that it was also near in March… Which leads up to the point where he says that both the CEX and DEX will stay open! Well, why would you do that? If you have a better solution as he claims to have, more profitable (both for BNB holders) as for him (via fees to Binance Chain) then why not implement it? Well… I guess you’ll have to ask him (good luck there)!
Ask me anything if I can help you! Be sure to stay follow the security steps necessary. And remember always DYOR!