A popular crypto analyst thinks decentralized exchanges (DEXs) will take over crypto in the wake of the recent FTX collapse that spurred fears about centralized
Despite his own prediction, pseudonymous Coin Bureau host Guy warns his 2.17 million YouTube subscribers that it will take “some time” time before the DEX experience can rival that of centralized exchanges.
DEXs are more difficult for beginners and less flexible for experts, according to the analyst.
“These technologies are still very much in their infancy, but I could see an order-book-based, cross-chain DEX being built by the end of the next bull market.”
DEXs also don’t offer the easy on-and-off ramps of centralized exchanges, according to Guy – though he notes that could be changing soon.
“The good news is that it should become easier to get your money in and out of crypto once it becomes more widely held… In sum, I’m confident DEXs will displace CEXs in the coming years. I reckon this will be accelerated by crypto regulations, which will only be enforceable against centralized elements of the crypto industry.”
FTX CEO Sam Bankman-Fried is accused of mishandling billions of dollars of customer funds by loaning them out to Alameda Research, a trading firm he also founded. US federal regulators are reportedly probing the scandal. Turkey is also investigating FTX and Bankman-Fried for possible fraud crimes.
The U.S. House of Representatives Financial Services Committee also reportedly plans to hold a December hearing to investigate FTX’s collapse.