Retail investors see the exchange suffering FUD, and regardless of what’s going on, the first reaction should be to withdraw and run.
At the beginning of the rumor spreading, retail investors don’t have the ability to verify whether the news is true or false—like what happened with FTX at the time; everyone was skeptical. But based on the outcome, we’d rather assume it’s true.
Because if the problem is real, your losses will be enormous; if it’s false, withdrawing only requires a small fee.
If this CEX has no issues, made it through the test, then if necessary, you can always put the money back. But there’s no need to rely on a CEX.
In 2021, I met a trading expert who had more than 4 million U in FTX—that was all his money. In 2022, he was wiped out in a single wave. Later, I contacted him less often, so I don’t know whether his claims were recovered. But after 2022, the days he had to live through were definitely difficult for years, and he missed a lot of opportunities as well.
At the beginning of the rumor spreading, retail investors don’t have the ability to verify whether the news is true or false—like what happened with FTX at the time; everyone was skeptical. But based on the outcome, we’d rather assume it’s true.
Because if the problem is real, your losses will be enormous; if it’s false, withdrawing only requires a small fee.
If this CEX has no issues, made it through the test, then if necessary, you can always put the money back. But there’s no need to rely on a CEX.
In 2021, I met a trading expert who had more than 4 million U in FTX—that was all his money. In 2022, he was wiped out in a single wave. Later, I contacted him less often, so I don’t know whether his claims were recovered. But after 2022, the days he had to live through were definitely difficult for years, and he missed a lot of opportunities as well.