Crypto Platforms That Could Collapse Like FTX & DeFi Alternatives

By Cryptofab | Cointune | 15 Mar 2024


As I mentioned in yesterday's post, the recent documentary on Prime Video, "Downfall of a Crypto King" details the rise and fall of the now-defunct crypto exchange FTX and its founder, Sam Bankman-Fried. As the documentary reveals, the collapse of FTX was the result of fraudulent activities, mismanagement, and a lack of oversight. One key lesson from the FTX saga is the dangers of centralized crypto platforms. FTX was a centralized exchange, meaning that it held users' funds and managed their private keys. This gave FTX enormous power and control over its users' assets, which ultimately led to the misuse of funds and the platform's collapse.

So, what are some centralized crypto platforms that could potentially collapse like FTX? I could give you many names... Take Nexo, for example. Nexo is a crypto lending platform that uses its own token, NEXO, as part of its reserves. This is similar to FTX's use of its own token, FTT, as collateral for loans and investments. If the value of NEXO were to plummet, it could potentially lead to a collapse of the platform, just like FTX. That's just one example... DYOR.

I'm not a huge fan of centralized platforms. There are other ways to make your money work. Personally, I prefer to use DeFi, although it's not fully safe either. I'm currently lending a portion of my funds on a Starknet (Ethereum layer-2) DeFi protocol called Nostra Finance. The lending APYs are pretty high currently due to the "Starknet DeFi Spring", and you can get eligible to their airdrop. Watch my video below for further details on how to proceed:

https://youtube.com/shorts/u_9IYVCmGV0

Make your due diligence, and, if you think it's worth it, you can join and get 5% bonus points by using my referral code below:

https://app.nostra.finance/?ref=8wtq0mb9d9

Talking about Ethereum layer-2s, the Linea Park campaign is still live. You can mint free NFTs that can make you eligible to another potential airdrop. Click on the link below to use my referral code again, mint free NFTs, and earn points:  

Linea Park campaign

As usual, I have to mention that there is always a risk in crypto: price volatility, misuse of funds or hacking on centralized platforms, smart contract vulnerabilities in DeFi protocols, etc. The list is not exhaustive, I could write another post about these risks. So, risk management is key. Just DYOR.    

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Cryptofab
Cryptofab

Studying Bitcoin, Alts & Arts.


Cointune
Cointune

Crypto, DeFi and passive income.

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