Centralized crypto exchanges have always been criticized for having an unquestioned dominance over the crypto markets, which wasn’t far from the truth. Exchanges like Binance, Huobi, Coinbase, etc., command the major share of entire crypto trade, and that can be a bit scary considering how vulnerable the market is to these giant players. So, in a world boasting decentralization and distributed economics, the dominance of centralized exchanges is an absolute contrast, and recent history shows how this can be a serious bane for the general crypto users at large.
For instance, not long ago, Binance delisted Bitcoin SV the antiques of its founder Craig Wright, the self-proclaimed Satoshi Nakamoto. While some might argue that the move was legit, those held BSV were at the receiving end, as the token lost considerable value. Also, following Binance’s lead, other major exchanges repeated the move, which further dented the price of BSV. Therefore, the market rationally needs something as decentralized as crypto itself, which can deliver all good, but inflict no harm, something, in fact, like decentralized exchanges.
Decentralized exchanges are the perfect alternates to the dominance of centralized exchanges and are often regarded as the future of crypto trade. While the likes of Binance DEX, the decentralized arm of Binance, have proved that they can be faster, and more secure, there’s still a long way to go in terms of mass adoption. In a video posted of Twitter, computer scientist and crypto advocate, John McAfee highlighted the issue and sarcastically criticized centralized exchanges. He said,
Centralized exchanges, the Gods of crypto! They take your information, whether they qualify your or not. They take your money, hold your money, and use it as they see fit most of the time, till you won’t use it. Then they control the markets you’re buying into or selling into. And then, when you want your money back, they don’t always do it right away. So, it takes couple of days, like (it is) in my interest, or whatever. They are the Gods of crypto, and they have controlled the entire market, using your money.
Time to talk Crypto. pic.twitter.com/X6ZxE4Aazk
— John McAfee (@officialmcafee) September 15, 2019
McAfee further added that distributed exchanges, which are already here in the market, are exactly what the crypto industry needs. Distributed or decentralized crypto exchanges don’t hold money, or information, and offer utmost privacy. In fact, they exactly represent what the Bitcoin pioneers would have expected, as they least interfere with your daily transactions, and let the users take total control.
Why are decentralized exchanges important? Well, the answer is that they let decentralized currencies be decentralized, as they don’t control the market the way they’re centralized counterparts do. They simply facilitate trade and nothing else. They let you pour in money when you want, and let you take it out when you want to, without any restrictions. Therefore, this makes them extremely important to end the dominance of centralized exchanges. It’s not that the latter was evil. However, the future looks inclined towards the former, which are more liberal in nature.