{"id":70703,"date":"2022-11-28T19:54:39","date_gmt":"2022-11-28T17:54:39","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70703"},"modified":"2025-09-08T03:49:34","modified_gmt":"2025-09-08T00:49:34","slug":"jpmorgan-cexs-will-maintain-dominance-despite-ftx-collapse","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jpmorgan-cexs-will-maintain-dominance-despite-ftx-collapse\/","title":{"rendered":"JPMorgan: CEXs Will Maintain Dominance Despite FTX Collapse"},"content":{"rendered":"<p>Despite <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">FTX collapse<\/a>, the supremacy of centralized platforms over their decentralized counterparts will persist. Analysts at JPMorgan concluded this, <a href=\\\"https:\/\/www.coindesk.com\/markets\/2022\/11\/28\/centralized-crypto-exchanges-will-remain-dominant-despite-ftx-collapse-jpmorgan\/\\\">CoinDesk<\/a> reports.<\/p>\n<p>As justification, analysts pointed to the substantial dependence of <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-decentralised-exchange-dex\">DEX<\/a> on CEXs. In their view, it will take a long time for price discovery to move from centralized to decentralized exchanges.<\/p>\n<p>The bank&#8217;s strategists noted that lower transaction-processing speeds, asset-pooling technology, and order-tracking capabilities are likely to restrict participation by institutional clients.<\/p>\n<p>As additional obstacles to broader popularisation they cited the absence of stop orders, the use of <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-blockchain-oracle\">blockchain oracles<\/a>, vulnerability to hacks, exploits, the need for over-collateralization and the systemic risks associated with cascading automatic liquidations.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>The balance of risk\/reward in <\/em><a href=\"https:\/\/u1f987.com\/en\/news\/what-is-decentralised-finance-defi\"><em>DeFi<\/em><\/a><em>-protocols is harder to assess<\/em>,<\/em> \u2014 the analysts wrote.<\/p>\n<\/blockquote>\n<p>The FTX collapse and the subsequent shift of users toward decentralized exchanges has been widely seen as a loss of trust in centralized intermediaries and the start of a long-term shift toward \\&#8221;democratized finance\\&#8221;.<\/p>\n<p>While acknowledging the recent rise in index-trading volumes, JPMorgan questioned the durability of the trend.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\\u201cDespite a rise in the DEX share of total cryptocurrency trading activity in recent weeks, this is most likely a reflection of the price crash and the decline in the share of borrowed funds\/automatic liquidations following the FTX collapse,\\u201d<\/em> \u2014 the strategists said.<\/p>\n<\/blockquote>\n<p>In November, the pace of monthly outflows of bitcoins from exchange balances to cold wallets <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-collapse-drives-record-drawdown-in-exchange-bitcoin-balances\">106 000 BTC<\/a>, according to Glassnode.<\/p>\n<p>Against the backdrop of events around FTX, hardware-wallet makers reported<a href=\"https:\/\/u1f987.com\/en\/news\/ftx-collapse-drives-record-hardware-wallet-sales\"> record sales<\/a>.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\"\u201d\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite the FTX collapse, centralized platforms will maintain their dominance over their decentralized counterparts. JPMorgan analysts reached this conclusion, CoinDesk reports.<\/p>\n","protected":false},"author":1,"featured_media":70704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,787,229],"class_list":["post-70703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-dex","tag-jpmorgan"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=70703"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70703\/revisions"}],"predecessor-version":[{"id":70705,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70703\/revisions\/70705"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/70704"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=70703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=70703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=70703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}