Investors are withdrawing record amounts of funds from centralized exchanges

In light of the FTX collapse, which left an 8 Billion Dollar hole in the company balance sheet, many investors are withdrawing their funds from more traditional trading institutions to wallets in their own custody.

At this point in the crypto winter, trust is at its lowest.

People are rushing to withdraw their funds before the next FTX happens, this is also a healthy procedure since the mass withdrawal will make the fraudulent institutions fall, and in the long run, will create a cleaner space.

We can see that right after the FTX collapse, a massive amount of Bitcoin got off exchanges due to fear of a potential bank run spreading to other exchanges, which is a bank run in technical terms.

Also, we witnessed a record-high use of retail custodial Bitcoin wallets, since we at Crypto Master Lebanon anticipated this kind of behavior we provided two detailed articles about which wallet and derivative exchange to use to avoid centralized exchange:

Crypto Wallet article: Best wallets for 2022 and 2023

Decentralized derivative Exchange article: https://www.cryptomasterlebanon.com/best-decentralized-crypto-exchange/

We can expect this trend to continue as long as the FTX disaster is still unfolding and haunting investors.