Our heavy reliance on centralized exchanges will give governments much more leverage over us just like what happened with Tornado Cash

22D Ago
Most of these centralized exchanges are US regulatory compliant, meaning they were forced to flag and seize accounts that were related in any sort to Tornado Cash. Now this wouldn’t be a problem is we all used DEXs but the vast majority of the crypto community owns a lot of money on the CEXs. This is exactly why it became a such a huge deal. The US government would have close to no leverage if we all used DEXs. What can they do? Ethereum developers, major crypto influencers and the entire community would simply not care and carry on with their lives. This is exactly why I think DeFi and DAOs are the only way to go if we ever want to achieve complete self governance and financial freedom. Why do people even use these CEXs? They have KYC plus DeFi and DAO have way better features to offer, self governance being the most important. The only drawback is higher gas fees but that’s being solved by man L2s Some like Zksync are even developing DAO specific scaling solutions like the one funded by Bitdao (ZkDAO) which will help reduce gas fees by a wide margin. I still don’t understand why we’re so heavily reliant on CEXs. I know that TVL on DEXs is higher but that still doesn’t change the fact that TVL on CEXs is dangerously high to the point where governments can use it as leverage to enforce their rules on us and regulate the way they want. Investing in a centralized exchange goes against everything that crypto stands for. The main reason crypto was created in the first place was for us to manage finances without have the government’s nose up out butt, yet somehow they now have our facial IDs and passports through KYC. Smh