Crypto Exchanges That Will Conquer The Next Crypto Uprise!

The spectacular implosion of FTX has highlighted the terrible way in which the $30 billion company was run, and has seen many, both inside and outside the space, question the future of the entire sector.

Despite only being days into the investigation over the fall of FTX, it is clear that the team made some astonishingly bad decisions when it came to operating the platform, all of which played a part in the exchange’s downfall.

In this piece we look at what FTX got wrong and how other exchanges eliminate these issues at source.

FTX Operated Like a Casino Rather than an Exchange

The first report into the collapse of FTX, written by the new CEO John J. Ray III, revealed several serious errors in the running of the exchange, the worst of which included:

● Overarching control of funds, both digital and cash, by Sam Bankman-Fried

● No list of bank accounts and account signatories

● Insufficient attention to the creditworthiness of banking partners

● “Substantial concerns” over the auditing company

● Inappropriate recording of digital assets and security protocols surrounding them

● Use of an unsecured group email account for storing of private keys

● Use of software to conceal the misuse of customer funds

● “Secret” exemption of Alameda from being automatically liquidated on FTX

This list, which is by no means exhaustive, makes one wonder how on Earth FTX wasn’t hacked or otherwise brought to the ground earlier.

While the FTX story is undoubtedly bad for the image of the crypto space, it isn’t reflective of the industry as a whole, and ignores the good actors out there that are actually operating in a legal, sound and prudent manner. These companies are not exposing themselves to the kinds of poor management and risky practices that FTX was engaged in, and they deserve to be recognised for this.

Dex-Trade Does Things the Right Way

A great example of an exchange doing things the right way is Dex-Trade, which formed back in 2017 and is still going strong, with ever-increasing community numbers. In many ways,

Dex-Trade is the exact opposite of the likes of FTX, with much safer business practices to ensure that your crypto is protected and not being used in illegal, or at least immoral, ways.

Firstly, Dex-Trade has a very strict policy of keeping all crypto not required for trading liquidity in multi-signature cold storage. This means that it is of no risk of being hacked by external sources, and moving any funds out requires the digital signature of multiple people at the company.

Moving them to hybrid storage is the only thing that Dex-Trade will ever do with your funds. It does not trade with them or lend them out for yields – it knows that customers have the right to ask for their holdings at any moment, and always ensures that, at minimum, the funds

held in storage and on the platform equal what customers have deposited. Such knowledge fosters user trust, a critical issue now facing the space in the wake of the FTX collapse.

Safe and Enjoyable

Not only does Dex-Trade protect your funds in this way, it has other security benefits that other exchanges don’t. These include an ongoing bug bounty to help identify and tackle any code issues on the platform, as well as undergoing regular security audits by Hacken. These

audits are published at the time of their completion in order to encourage transparency and trust.

As well as being a safer option, Dex-Trade has a number of added features that make using it enjoyable. This includes demo trading, and automated airdrops for anyone who qualifies and the ability to quickly roll out breakthrough functionality, such as new features and

protocol improvements.

The collapse of FTX has resulted in crypto users quite rightly asking questions of the tools and platforms they use to look after their crypto, tools and platforms that are supposed to have protection of user funds as their bedrock. Dex-Trade has years of experience in offering users a safe, trusted platform on which to trade cryptocurrencies, and it looks like it plans to be here for years to come, while other more risky platforms come and go.

Future Proof Crypto Exchanges

The crypto market never ceases to amaze with the number of ways large industry participants make mistakes. It is now apparent that size is not the definition of safety and even the largest platforms that hug regulators every night before bed, are fully prone to failure.

This is why smaller and more agile exchanges not only rise, but flourish with support of their incredibly close knit communities. Take Dex-Trade as an example. Having concentrated on giving to the community with airdrops, games and an incredibly straight forward trading UI, the platform has managed to attract both large trading desks and individuals. Since then, it never stopped growing, which proves that being small and flexible is much larger than just being large.