It has come to pass. CEXs going under the rise of DEXs is starting.

Centralized exchanges left and right is going under because for some reason or another they don't hold customer funds one-to-one. One probable reason for that is that businesses like FTX were using customers' funds to trade with leverage. Many of those exchanges provide yield services to customers too, so those that administer those exchanges are an incentive to gamble with customers' funds to give the yield they promise. Many times, those that help those funds don't apply risk management to their trades because they are not regular and as such, those people can do what they think is right, which in the end turns out they were wrong and lost customers' funds.

The point is, if you let someone else administer your wealth, that someone else will administer your wealth to his pocket by either using direct methods or indirectly, but in the end, you will lose your money one way or another.

I am sure I am not the only one that has wrote not your keys, not your crypto, using exchanges as wallets, in the end, has a great potential for ending badly for the consumer while the administrators of those services flee to jurisdictions without extradition agreements with other nations and in the end even hackers that managed to infiltrate a falling institution.

Regardless of the cryptocurrency asset you may like or are invested in, it is always good practice to move funds into private keys that the customer controls. If you want to invest in exchanges only do it if they go public like Coinbase instead of buying any token emitted by it, and that includes Binance tokens. The moment Binance goes under so it will its token and its centralized sidechain as well.

If you want to invest in infrastructure the best way will be to do so with decentralized exchanges, if they run on a truly decentralized first-layer network or sidechain. If your sidechain has a weakness that decentralized exchange will suffer any issue the network it runs may have. But if the dex goes under because users start to withdraw and not use the features a dex may offer your token will lose value.

The current situation going on in the whole cryptocurrency market could have been avoided if users realized that centralized exchanges are not wallets and that exchange tokens emitted by an exchange is not an asset but a security disguise and prepared to mislead investors because the way a centralized exchange should have a token is by registering it as a security and play by the rules. Even decentralized exchanges could be categorized as securities in the future, but if your dex is decentralized in reality and not just in words that regulation or declaration will be as useless as a dog barking in the sky.

I think that probably people now will start to try to use more and more decentralized exchanges and that most layer-one projects will add sidechains that will enable the usage of decentralized tools to trade, borrow and lend. Bitcoin and Bitcoin Cash both have their sidechains and I will say that it will be better to trade and hold your funds within your keys than to see it all taken away by corrupt people like the owner of FTX and probably even Binance in the future.

I don't care what cryptocurrency you may hold just make sure you hold your satoshis within a wallet you and only you alone have access to the private keys, and if you hold funds in centralized exchanges to withdraw your funds to your wallet even if that exchange is not in trouble just yet, that includes Binance, Coinbase, and Gemini before you may regret it because any CEX can go under at any minute.