2022 was a tough year for crypto, and November was especially hard on investors and traders alike.
What people learned, albeit in the hardest way possible, is that exchanges were running fractional reserve-like banks to fund their own speculative, leveraged investments in exchange for providing users with a “guaranteed” yield.
If the number of insolvencies and “temporarily pausing of deposits and withdrawals” messages continue to pop up over the next few weeks, it seems likely that this trend of coins leaving exchanges and popping into hardware wallets will continue.
After the events of the past two weeks, trust in centralized exchanges and crypto companies could be broken, and the current and next wave of crypto investors could embrace the more Web3-focused DEX and DeFi protocols.
Source: Cointelegraph
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