The collapse of FTX brought a negative impression on CEX and have made several investors opt for DEX. Not without its own cons, investors feel that it's more security assured. Looking at things from a broader perspective, I think the collapse brought some preventive measures as some top CEX has since introduced user protection fund. A measure that give investors a level of confidence that their funds are safe on the platform.
Some top exchanges like Binance and Bitget have incredibly raised this funds to significant amount that can be verified by users and they are been published on a monthly basis. Other exchanges have also followed suite in ensuring they follow this practice to enhance the confidence of users.
Do you think this measures from centralized exchanges can restore the confidence of investors.
Indeed, user protection funds represent a positive innovation and a move in the correct direction. They have the potential to rebuild investor confidence in centralized exchanges by offering a safety buffer against unexpected occurrences, such as exchange collapses or hacks, thereby bolstering trust in the dependability and security of these platforms.
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