Investor confidence in centralized cryptocurrency exchanges has been greatly impacted by the collapse of FTX. The cryptographic maxim “not your keys, not your coins” has once again gained traction in popular discourse in the wake of the recent financial turbulence and allegations about struggling crypto exchanges abusing user cash to place hazardous wagers.
Investor trust in centralized cryptocurrency exchanges has drastically declined as a result of the FTX collapse. The guiding principle of cryptocurrencies: “Your keys, not yours. ‘is not the coin’ is once again at the forefront of public discussion amid the accompanying financial crisis and tales of unstable cryptocurrency exchanges taking user funds to fund dangerous bets.
It has cost a lot to give up ownership of users’ currency. Massive withdrawals from exchanges have been recorded as a result. According to CryptoQuant, more than 80,000 BTC have left exchange wallets in the previous day. Data indicates that investors withdraw their Bitcoins and store them outside of exchanges.
According to sources, “The crypto business has been in complete upheaval over the previous few days. Binance might step in to assist FTX, which has gone insolvent and is looking for a bailout. Investors’ lack of faith in central exchanges is fully reflected in Exchange Reserves and Exchange Netflow in the interim.
obverse data Additionally, it implies that CryptoQuant has monitored far over 5 billion stablecoins that have been stolen from exchanges. As the volatility brought on by the FTX drama continues to rage, the numbers appear to be the highest since June 15th.
Over 57,900 transactions to withdraw stablecoins from exchanges were made, in contrast to just 7,016 transactions a week earlier. Ledger, a maker of hardware-based crypto wallets, says there were “Few scalability concerns” after the mass exodus from cryptocurrency exchanges.