Users are moving to DEX platforms while Centralized Exchange FTX is in decline
FTX recently collapsed in November 2022 taking with it a few billion dollars along with buyer confidence for the crypto market as a whole. Experts believe the fallout from this FTX collapse is ongoing and more and more companies will be screaming foul before this is over.
In fact, there has allegedly already been a hacking incident involving $400 million worth of tokens and a token dump afterwards, which took the market’s recovery after the FTX collapse and took ETH Ethereum to lower levels than crypto analysts predicted for November and December 2022 forecast.
What is FTX?
FTX is a centralized exchange where users deposit their funds to trade.
FTX has been around for a few years and has had its share of ups and downs, but all of this has nothing to do with the $16 billion collapse that took place in November 2022 when CEO Sam Bankman-Fried even joined Binance’s CZ, a direct competitors, went to ask for help with liquidity problems.
First, CZ said he would help in a tweet he created. Hours later, he tweeted that the company was beyond repair for CZ. Ouch, this caused the price of FTX to drop over 80% in value in moments.
Since CZ’s Bankman-Fried was rejected by Binance and filed for bankruptcy in Case 11, no one has seen the LP since. So where’s the funds, Sam?
As of today (December 2022) users of FTX have still not been able to withdraw their deposited funds and probably never will be able to while the former CEO of FTX Sam Bankman-Fried is still at liberty.
That’s the problem with centralized exchanges or CEXs, they take on a custodial role and effectively take your money away from you so you can use their services.
As much as centralized exchanges want to behave like banks, they are not.
Centralized exchanges like Binance, FTX, KuCoin, CoinBase, and Kraken are not as heavily regulated as banks and do not invite support from government agencies. For this reason, crypto was created as an alternative to banks and for those who wish to remain anonymous. Centralized crypto exchanges transcend the purpose of anonymity.
What is a centralized exchange?
A central exchange is a place where traders (or account holders) can deposit their funds to trade token pairs.
Centralized exchanges rely on this deposit as they require a lot of liquidity to facilitate trading, they take what is called a custodial role or act as a custodian for your money. This is almost the same for all types of centralized exchanges, stock or otherwise.
The stark difference is that most other types of centralized exchanges are both supported and regulated by governments, governments that can either compensate users or prevent a collapse in the first place.
Centralized cryptocurrency exchanges have the power of banks when it comes to funds deposited by users, but not the bureaucracy that banks have. This means that centralized exchanges like Binance can literally run and take your money, avoid a crash and all you can do is say goodbye.
What is a decentralized exchange?
A decentralized exchange like Uniswap, Pancake Swap and Toon Swap are also exchanges or a place where the users can trade token pairs. The big difference is that you don’t have to deposit funds on a decentralized exchange platform like Toon Swap.
Toon Swap does not take on a custodian role, instead facilitating a “trustless” and “permissionless” way of trading. This means trades take place without trust or approvals. Trades are executed through smart contracts and no intermediaries are involved.
Because of this, trading on a decentralized exchange, or DEX, is ultimately more secure and private. It also usually means there are lower and cheaper fees as there isn’t the overhead that centralized exchanges or CEX have.
What is pancake swap?
Pancake Swap is a decentralized exchange (DEX) based on the Binance Smart Chain. It allows users to trade between different cryptocurrencies and tokens without having to trust an external exchange or custodian.
Pancake Swap offers unique features like staking, farming, and yield generation. It also has its own native token, CAKE, which can be used for rewards and discounts on fees when trading on the platform. In addition, Pancake Swap offers liquidity pools that allow users to mobilize their wealth in exchange for additional rewards.
The user-friendly interface makes it easy for newbies to start trading cryptocurrencies. Additionally, its low gas fees make it more attractive than other platforms that may have higher costs associated with transactions like Binance and other centralized exchanges.
Pancake Swap started out as a fork of popular decentralized exchange Uniswap. Since then, it has become one of the most popular DEXs in space and is currently in the top 10 largest DeFi protocols by 24-hour trading volume. The platform is constantly evolving and introducing new features like flash loans, automated market makers (AMM) and more. With its high liquidity and ease of use, Pancake Swap is becoming an increasingly attractive option for cryptocurrency traders looking for a safe and convenient way to trade digital assets.
Overall, Pancake Swap is a powerful decentralized exchange that offers users an easy-to-use interface along with unique features like staking, farming, yield generation, liquidity pools, and more.
What is Uniswap?
Uniswap is a decentralized automated liquidity protocol that allows users to quickly and securely swap between Ethereum-based tokens such as ERC20s and ERC777s.
It offers a trusted, open-source platform for token exchange without the need for traditional intermediaries like centralized exchanges. Uniswap uses smart contracts on the Ethereum blockchain to facilitate trading between two different tokens at set prices.
This eliminates the need for custodians or middlemen in token trading, making digital asset exchanges safer, more efficient, and less expensive. Additionally, Uniswap’s platform allows developers to launch their own token pairs with minimal effort, giving them greater flexibility when launching new products.
What is toon swap?
Toon Swap is one of the biggest DEX or decentralized exchange projects for 2022. It offers a clean user interface and a solid trading experience. Several experts and analysts believe that it will take a similar path as Pancake Swap with its token Toon Finance Token, which is quite cheap and currently for sale, and crypto market experts say that the token is worth at least US$35 dollars will have near future. For now, the token remains below $1.
This is huge for all you meme coin lovers out there. A meme coin DEX, this is the future of Defi. Pancake Swap has been a huge hit and users have said that the Ethereum network needs access to something similar. Toon Finance is it.
The token plans to add game to earn features and more. They have already added a swap to their platform to allow users to exchange Eth for other tokens and more. That’s more than any ICO project has achieved in a long time before launch.
This guarantees that the Toon Finance project will remain and they will have a great future. Anyone who gets in early has a really good chance of hitting 1000x wins, similar to Dogecoin or Safemoon. Safemoon reached over 80,000x in 3 months. That’s a huge win.
We can’t say if this prediction holds water, but Toon Swap will have features that will simply set it apart from its competitors and make it better in a number of ways compared to Pancake Swap and Uniswap. For example, it has similar features to Pancake Swap and Uniswap, but it also has its own features that only it offers so far.
What Makes Toon Swap a Good Investment?
Toon Swap by Toon Finance is a decentralized finance project classified as a decentralized exchange. It allows users of its platform to trade multiple token pairs with lower transaction fees than centralized exchanges like Binance.
Toon Swap has space farming, a type of staking program similar to the best decentralized exchanges like Uniswap, Biswap, and Pancake Swap. But it also has a space bridge that allows it to have multi-chain functionality and open many doors for both token trading and NFTs.
Toon Swap also has a P2E aspect that allows users to play and earn tokens by betting on game outcomes. This aspect is incredibly revolutionary as it not only allows users to earn while playing, but also encourages moving massive amounts of tokens around the exchange. This makes it even more desirable for traders, which makes it even more desirable for investors. Any token with a use case is an instant eye-catcher for a serious investor.
Now we see that the collapse of centralized exchanges like FTX is not really a rare case, and in fact it is usually centralized entities like FTX that cause many problems in the cryptocurrency world. Former CEO of bankrupt centralized exchange FTX, Sam Bankman-Fried, is still at large as it makes it easy for centralized exchanges like Binance to just use their users’ funds however they like.
But there are decentralized exchanges like Toon Swap that make for a safer way to trade, they don’t require deposits as all trades are done through smart contracts. While there are many decentralized exchanges out there, it’s a good idea to take a look at Toon Finance, the maker of Toon Swap, as this project still has plenty of room to grow for an investment to yield higher returns.
Toon Finance website and presale links below:
Website: https://toon.finance/
Presale: https://buy.toon.finance/
Twitter: https://twitter.com/ToonSwapFinance
Telegram: https://t.me/ToonSwapFinance
CoinMarketCap: https://coinmarketcap.com/currencies/toon-finance/
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