Steemit Crypto Academy Contest Season 6 Week 2 -Centralized Cryptocurrency Exchange Platforms and Its Risks
First of all and as always, we, the members of the Steemit Crypto Academy community, wish you a good start to the week full of energy and enthusiasm to participate in large numbers in this second week of the Steemit Engagement Challenge in its sixth season. starting tomorrow, Monday, November 28, 00:00 UTC to Sunday, December 4, 23:59 UTC.
What drives and always motivates us to organize these competitions in this promising field, which aims to better explain and simplify the concepts related to the field of Blockchain and crypto-currencies, is the dedication of many participants to what we propose, even if their number has decreased for several reasons, for this we therefore renew our thanks to them and we also invite them to participate in this week of the challenge and to contribute to enriching the platform of their work, as well as to interact with their colleagues by leaving comments and inviting new members. This week we are going to focus on the risks associated with centralized exchanges, which is a topic that re-emerged after the FTX platform incident and we want to read your participation.
Contest theme: Centralized Cryptocurrency Exchange Platforms and Its Risks
The collapse of the FTX cryptocurrency exchange and its declaration of bankruptcy in recent days raised questions about the future of the cryptocurrency markets and the extent to which they were affected by this incident, especially with the sharp losses witnessed by these currencies in the last year.
The expectations of experts in the field of technology varied regarding the future of cryptocurrencies and their impact on the resounding fall of the FTX stock exchange, as some expected the collapse of the markets for these currencies in the coming period, affected by the crisis.
While others expect these currencies to regain their balance and recovery once the economic conditions stabilize, and that their decline in recent months is mainly due to the economic fluctuations that various sectors suffer from globally.
In this competition, we wanted to know the opinions of users on the platform about what is happening by answering the following questions.
What is expected in the Contest?
How do you agree with this saying “Users may be surprised to learn that in a bankruptcy scenario, they may not consider the cryptocurrencies and funds deposited in their accounts as their own”?
Explain, from your point of view, why did the FTX platform go bankrupt? how did you find it? What are the other consequences of this accident?
If you are so pessimistic, what do you think is the worst thing that could happen to cryptocurrency after the FTX incident? And what will be its impact on Bitcoin?
Could this incident reinforce the view that cryptocurrencies are outdated and unstable, because they do not have collateral, unlike state currencies such as the euro or the dollar?
Do you think that Binance's decision to buy FTX will reassure the previous investors of this platform and what is the future of the FTT cryptocurrency?
• Post your articles in the Steemit Crypto Academy community. The participation time is between Monday, November 28th, 2022, 00:00 UTC to Sunday, December 4th, 2022, 23:59 UTC.
• The article should be at minimum 500 words. You can write more. Your article must be free of any form of plagiarism.
• Your article title should be **Steemit Crypto Academy Contest / S6W2- Centralized Cryptocurrency Exchange Platforms and Its Risks. Add the tag #cryptoacademy-s6w2 and other relevant tags.
• The community moderators would be leaving quality assessments on your articles and probable upvotes.
• In addition, your article must get at least 10 upvotes and 5 valid comments to count valid in the contest, so ensure you interact with other users' entries. Do not be involved in vote-buying.
• SC01 would be checking on the entire 7 participating communities and upvoting outstanding content. Upvote is not guaranteed for all articles. Kindly take note.
• At the end of the week, we would nominate top 3 users that had performed well in the contest and they would be eligible for votes from SC01/SC02.
Important Notice: The nomination of the top 3 users in our community is not based on good grades alone, it includes their general engagements (quality and quantity of their interactions with other users' articles) to measure the overall performance. Also note that generally, you can only make one post per day in the Steemit Engagement Challenge.
The sector came into being because people didn't trust Wall Street, but the recent string of scandals raises what amounts to an existential question for the crypto industry whether it too can be trusted. For many, the hope was that tougher regulations would restore confidence. But the FTX bankruptcy appears to have spurred the legislation that Pinkman Fried has been lobbying so hard for.
The legislation has been objected by some decentralized finance platform operators, who see it as biased towards the interests of large centralized exchanges such as FTX. Perhaps tougher regulations will eventually make the crypto sector more stable and more respectable. What is now unknown, however, is how much the sector can withstand the additional scrutiny that will follow.
We are looking forward to your participation and we wish you many success in the contest.