r/CryptoCurrency • u/[deleted] • Apr 02 '23
What would it take for a central exchange to be trustworthy? DISCUSSION
[deleted]
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u/flyfreeflylow Platinum | QC: CC 76 | MiningSubs 11 Apr 02 '23
We already have a couple good examples: Kraken and Coinbase
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u/InsaneMcFries Platinum | QC: CC 256 Apr 02 '23
Kraken seems to be doing the right things to be considered "trustworthy". They have had proof of reserves since like 2018, right? They openly advocate for self-custody. The sentiment of this sub on Kraken is overwhelmingly positive.
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u/SimbaTheWeasel Bronze | QC: ALGO 18 Apr 02 '23
I love Kraken. They always show me love in this sub
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u/krakensupport ☑️ Kraken Support 🐙 Apr 02 '23
(∩◑_◑)⊃━━☆ﾟ.*･｡ﾟ
Satoshi's blessings,
Bea from Kraken 🐙1
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u/leeljay Platinum | QC: CC 67 | Superstonk 15 Apr 02 '23
Honestly… it would need to be in line with regulatory standards.
Like Coinbase being publicly traded is a good sign. Binance being a massive black hole, not so much
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u/TabletopThirteen Platinum | QC: CC 246 Apr 02 '23
Coinbase is the most for me but they need to greatly improve their customer service. But Coinbase is the most regulated so I do trust it more
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u/No_Scientist_7094 Bronze | QC: CC 20 Apr 02 '23
Transparency and zero degen trades with user deposits. One would think its not that hard.
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u/vidati Tin | SHIB 13 | r/AMD 33 Apr 02 '23
Having a good track record when it comes to stability and reliability of the platform, transparency and a CEO who isn't cocky.
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Apr 02 '23
For a CEX, it would go a long way to improve trust if they had improved customer service.
Like an option to speak to an actual person right away that is actually knowledgable and can help.
But the biggest thing for me regarding CEX's is there would need to be a similar type of insurance to FDIC for crypto holdings or I would not feel comfortable giving up my coins to a CEX in return for convenience or a percentage in staking or interest rewards.
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u/masstransience Platinum | QC: CC 25 | LRC 7 | Politics 118 Apr 02 '23
Satoshi didn’t make BTC with CEXes in mind for a reason.
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u/SpaceMan639 Apr 02 '23
Despite how much back lash it gets crypto.com is still yet to go down
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u/SimbaTheWeasel Bronze | QC: ALGO 18 Apr 02 '23
I’ve never used them, but I’ve been meaning to check them out
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u/SpaceMan639 Apr 02 '23
They are alright. As far as all the problems I had they were about average and sometimes quick on resolving big issues. Just wish they had a lower fee when transferring crypto out to my ledger
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u/StonedRex Platinum | QC: CC 181 Apr 02 '23
After all I've seen happening with crypto these years, I will never trust any CEX again.
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u/SimbaTheWeasel Bronze | QC: ALGO 18 Apr 02 '23
Yup, CEX cannot be trusted. The power always gets to their head
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u/BrocoliAssassin Silver | QC: BTC 218, CC 105 | CelsiusNet. 25 Apr 02 '23
Start actually prosecuting the wealthy and those involved in fraud when it comes to CEX's.
Thats the biggest thing to do by far.
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u/Wonzky Platinum | QC: CC 986 Apr 02 '23
Transparency is really all that's needed, and probably an audit
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u/unitys2011 Platinum | QC: CC 35 Apr 02 '23
Not freezing your account for "inauspicious activities"
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u/Dongerated Permabanned Apr 02 '23
Honestly, no matter what they will never be trustworthy. Your funds will only be safe inside your own wallet.
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u/Harmz1229 Silver | QC: DOGE 40 | SHIB 33 Apr 02 '23
Have as good of record as Coinbase. Say what you want about them but they are the most solid and trustworthy exchange.
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u/Cool_Dark_Place Tin | PoliticalHumor 23 Apr 02 '23
I think ultimately, trust will be built over time. And during this time, we'll see a lot of the bad actors fall by the wayside. In the short term, this may be bad for crypto, as seeing so many exchanges fall spreads a lot of FUD in the general public. However, in the long term, we'll see the legit players still standing. Personally, I'm hopeful that we're just experiencing a sort of "growing pain" in this industry, and getting through this will put us one step closer to mass adoption.
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u/Vapin-1567 Tin | 1 month old Apr 02 '23
They would have to be transparent, have good customer service and have insurance for users.
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u/lainmib Tin Apr 02 '23
No CEX is safe or trustworthy. Period. They can all be brought down, and your tokens/money taken from you.
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u/akselmonrose Tin Apr 02 '23
I guess if they are insured in a sense? Maybe nexus mutual. Look exchanges play a role like public toilets. For the longest time in my country, I couldn’t buy crypto cos my choices were otc and I didn’t like meeting people. Best if they make them sparkling clean.
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u/ChaoticNeutralNephew Apr 02 '23
I am really digging Kraken, especially their telling customers to practice self custody
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u/krakensupport ☑️ Kraken Support 🐙 Apr 02 '23
I couldn't agree more! Not your keys not your coins.
Self custody is something we always will advocate for.
Keep on smiling!
Bea from Kraken 🐙
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u/Spicoli007 Apr 02 '23
Fully backed insurance policies in case they go under everybody is fully reimbursed in a timely manner.
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u/Mister_Way Tin Apr 02 '23
The way they will gain customers is by banks losing trust, not by crypto gaining it.
The exchanges live on borrowed time, anyway. Crypto doesn't need a central, trusted institution to be in control. That's the point.
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u/yuruseiii ETHead Apr 02 '23
Being a responsible custodian of user assets should be the baseline. That means not using these funds for business purposes, like overleveraged borrowing and lending.
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u/Hofnars Platinum | QC: CC 15 | CRO 8 | MiningSubs 27 Apr 02 '23
Familiarity and a lot of confirmation bias is all it will take for people to start trusting CEX's. There no reason to trust banks after 2008, but here we are.
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u/lmrj77 Platinum | QC: CC 59 | TraderSubs 10 Apr 02 '23
If they had an infrastructure where you'd own the wallet where your crypto is stored.
Kinda like... a dex now that i think about it.
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u/yanwoo Platinum | QC: CC 48 Apr 02 '23
Separation of custody and trading in separate entities. There’s a reason that’s how tradfi works.
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u/Ahioo_ Tin | CRO 12 | ExchSubs 12 Apr 02 '23
Chainlinks proof of reserves and all the other great chainlink add ons/functions
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u/khilayi Apr 02 '23
Well, the Proof of Reserve, a responsive customer care team, regulatory compliance, robust security system, a team of professionals whose watchword is: integrity. I believe a CEX with these qualities is good to go. I think Kraken and mexc makes the list for me
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u/mbdtf95 Apr 02 '23
Not saying it's completely safe, but Coinbase being on stock exchange makes it feel at least a bit safer than others to me. They have to be more publicly transparent about their earning reports to investors etc...