Finance

After FTX Collapse, Top-5 CeFi Platform’s Reaction

11/19/2022
Bitcoin Ethereum News

FTX Collapse

CeFi, or Centralized Finance was created to do investment in crypto while all crypto trade is managed through a central exchange. That means the user does not require to own a private key that gives the user access to their wallet.

CeFi vs DeFi

In between CeFi and DeFi wallets, it is clearly understandable that a DeFi wallet gives the custody of wallet to its user which means the user has full access and control of their private keys. On the other hand, CeFi does not provide complete ownership of crypto when it is stored in any wallet.

How Top-5 CeFi Platforms Are Working After FTX Collapse?

  • Nexo: More than 5 Million worldwide users, with 60+ supported cryptocurrencies. It recently clarified that it has $0 net exposure to FTX and Alameda. And as a conservative institution with stringent risk controls Nexo has safeguarded all funds by withdrawing its entire balances from the exchange over the past few days.
  • BlockFi: Recently stated that it determined late last week that because of the current environment it no longer operates its business as usual. Given that FTX and its affiliates are now in bankruptcy, the most prudent decision for us, in the interest of all clients, is to continue to pause many of BlockFi platform activities for now. The rumors that a majority of BlockFi assets are custodied at FTX are not true.
  • YouHodler: A FinTech platform, shares its thoughts on the FTX collapse and why crypto investors should remain positive about the market’s future. YouHodler has zero exposure to FTX/Alameda Research and has healthy financial vitals. It has a sustainable business model (no native token.)
  • Swissborg: Also shared that it has no ties with FTX or Alameda, no leverage, no funds are with lenders and all the users funds are segregated from the treasury – if the worst was ever to come, a liquidator would refund everyone to the cent.
  • Wirex: The multicurrency Wirex card, also provided a link if any user needed any assistance.

These five cefi platforms are rising in the dark and that can give many benefits. But it must be noted that not all of these platforms are available globally, like YouHodler and Swissborg are not available for US customers. Nexo is restricted to the state of New York. And few have their own tokens and are not available for the US customers.

Source: https://www.thecoinrepublic.com/2022/11/19/after-ftx-collapse-top-5-cefi-platforms-reaction/