FTX Collapse: Which Platforms In The Crypto Market Can Be Trusted?
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The biggest news this week across the cryptocurrency industry has been the implosion of the FTX crypto platform. The company is at risk of insolvency and is seeking buyers of the last resort. FTX is also at the center of probes from numerous regulators and the US Department of Justice.
There is also mounting evidence that the company’s founder allegedly used customer funds to support a sister business, Alameda Research. Customers are out billions of dollars in assets, and early investors with a stake in FTX, like Tom Brady, Steph Curry, and Kevin O’Leary, could also lose everything.
FTX is the latest in a string of cryptocurrency companies going under or misappropriating customer funds. The biggest question the entire crypto community is currently asking is: which platforms left in the crypto market can be trusted?
Why Trust Matters The Most In The Crypto Space
When Satoshi Nakamoto first developed Bitcoin – the first ever cryptocurrency – he designed it to be trustless and its protocol work without the need for a third-party intermediary. But that is the Bitcoin code. To actually buy BTC or other popular cryptocurrencies, you still need a trusted third party. And to trade crypto, you must trust other platforms with your digital assets, which must be responsible for keeping those funds safe.
All too often, businesses can’t avoid the temptation of using customer funds or simply don’t take security seriously enough. For years hacks were highly prevalent, but that trend has since shifted away from exchanges and trading platforms and towards DeFi protocols themselves, which are regularly drained of funds.
While crypto platform security has undoubtedly been beefed up, integrity has gone completely down the toilet. Some of the most well-known crypto platforms, such as the FTX example, have been among the least trustworthy of all. That’s why it is critical to pick the most trusted platforms around.
What Cryptocurrency Platforms Are Safe To Trust?
What you will read below is a short list of top cryptocurrency platforms that have withstood time and volatility and have not experienced any significant hacks or scandals.
Brian Armstrong and his team rarely make a significant splash in the industry, but they also continue to be one of the most trusted crypto exchanges around. Coinbase became synonymous with Bitcoin during the 2017 bull run but since has lost significant market share to Binance, FTX, PrimeXBT, and other more innovative platforms.
Coinbase also only allows the strict buying and selling of digital assets, with no way to short cryptocurrencies, take hedge spot positions, or make money when prices are downtrending. The only option is to move into cash and wait to buy the dip somewhere along the way down.
Regardless of the lack of innovation over the years, Coinbase remains a trusted figure in the cryptocurrency industry and is a good option for beginners who don’t need sophisticated features.
The PrimeXBT margin trading platform lets users buy crypto just like Coinbase but then allows users to maximize their investment with powerful margin trading tools. Using cryptocurrencies as collateral, traders can long and short a wide range of cryptocurrencies with leverage. PrimeXBT is a rare crypto-focused trading platform that also lets you use crypto assets to trade traditional markets like oil, gold, forex, and stock indices.
PrimeXBT launched in 2018 during the last bear market and knows a thing or two about survival. The platform also has a glowing reputation, winning numerous industry accolades and most recently being awarded the Most Trusted Crypto-Asset Trading Platform by Crypto Expo Dubai.
PrimeXBT is an all-in-one platform providing access to educational tools, weekly trading competitions, yield accounts, and an innovative peer-to-peer copy trading community called Covesting, which is designed in cooperation with the European, licensed fintech developer by the same name.
Binance is the biggest reason for Coinbase’s dwindling market share, having launched in late 2017 and slowly, over time, sucked up much of Coinbase’s spot trading volume. Binance has also remained highly competitive in terms of its features, launching crypto futures and other types of derivatives trading.
The sheer size and dominance of Binance mean it is one of the more reliable platforms and safer to trade at. Binance also was approached by FTX to buy out the company and save it from insolvency, which shows that the brand is well-capitalized.
Trust issues have arisen a few times throughout the platform’s history in the market, but when you are so prominently in the public eye, it is easy to become a target. In the end, Binance tends to prove ultimately that funds are “SAFU,” as they call it, and even back up customer funds with an insurance policy and is aiming for “proof-of reserves” in the future.
The cryptocurrency industry is in chaos right now, but when the dust does eventually settle, the clearing out of bad actors will create a greater focus on top platforms that can be trusted. The crypto market will be safer and attract more capital in the future when the system is cleansed of any glimmer of mistrust.
In the meantime, by picking from the assortment of platforms on this list, funds will be held in respected, reliable, and trustworthy platforms that have stood the test of time and uphold integrity in the space.