Updated: Jun 2
First of this is not a pity party post. Simply to express some bad decisions that may help someone not fall trap. :)
That said --->
What are the difference?
CEFI = Centralized Exchanges
Meaning, there is a central control to its operation. When using exchanges, $ or tokens remain on the platform until you take them off. These 2 acted in disguise as a bank and exchange. In contrast to keeping in custody in your own digital wallet, like the ones I suggest to you guys.
DEFI = Decentralized Exchanges
When exchange of tokens occur, they return to your wallet after conversion. There is no central control to say you can or can not interact.
Well I never even had a chance to launch WICKED Koin to the public, because I felt uncertainty after Apr 20th. I was right and Markets have been correcting since, bringing ADA to .32 as of today.
Thankfully I did not launch or the WAG tokens paired to the artists.
CEFI is good because it allows users to connect with a Defi Ecosystem. Problem arises when you LEAVE your tokens on the exchange, and they go bankrupt or steal from it. This does not happen if tokens stay in your wallets I recommended. :)
Why do I bring this up? The downside exists like stories of FTX last week. They and their 3 highly profile hedge funds went bankrupt. Then hacked. Obviously from those working for the company. I’d used this exchange in good faith to hold 20% of all my sales in Bitcoin for the future Kraken Foundation. Leaving the phone I connected with my mom for the future, so I can not touch. Only accessible by face recognition.
I did not use funds even after PayPal closed my account for a bong sale, which is similar to the FTX loss. I say a loss because FTX filed for chapter 11, the exchange was drained to zero by a hack. Yes Zero.. 10-25 Billion dollars to ... 0.
I want to be transparent because this is the reason I stress DEFI wallets. I only left on the exchange so to avoid taxes until KRAKEN Koin was launched. If never sell, no taxes. It would have been the initial backing of my art token. 3 years of savings for a good cause lost. Haha Even under the impression I was doing everything right.
I can not disclose how much it was, because I’m pretty salty. Haha Very embarrassing.
Why did FTX go under?! God knows, it doesn’t matter anymore. That said I will restructure to start over and will reset the value of WICKED.. After all of the dust settles and crypto blows back up, blockchain will be used for NFTs without a doubt and to monetize either a person, idea or tangible thing. Such as a glass Kraken in point. :)
I spent 2years studying blockchain for my use with glass and never once raced to exploit it as I saw many did. If I did I wouldn’t be happy seeing friends loose. I can not give my advice thru experience either until I see the ultimate downsides myself. Well I saw them. Luckily I love my job so much it does not matter to restart. I believe in my idea and it’s unfortunate someone tarnished the use of crypto by stealing billions. I did my homework and felt safe with them as he was a Stanford and MIT grad and mega smart but a little too smart.
This is not a poor pity party, but Ive watched crypto crash… it finally came to a crescendo. I will continue with my WG Token on the back end and get caught up with WICKED backlog of transactions but since I saw the fear in the markets. rather not waste time trying to convince people when they see friends losing. I’ll wait until true progress I can display exists.
Krakens due have a NFT attached and soon Cardano will build a better user friendly wallet to sell and transfer via a mobile. Until then I’ll only help those trying to do it before hand. Companies creating the technology have even become discouraged due to contagion, with fallout of companies like Celsius, Voyager, Blockfi and especially FTX created.
I lost my large amounts of Cardano on Celsius, which I took a loan against at x3 capital. Only bright side is I do not pay back loan but lost all the backed capital.
If you take a loan and pay back you avoid the taxes incurred. That was whipped out. Blockfi was a even a regulated IRA Bitcoin fund. I lost a little on Blockfi because FTX was suppose to bail them and now they say FTX was the reason Celsius margins were called and got whipped out as well.
So. Problem here? I was a little too early to the party that trusted CEFI companies. Never again will I keep $ on a CEFI company platform, with exceptions to Coinbase. They are a publically traded regulated and insured CEFI exchange. Unlike FTX or Celsius.
Like I said, when the dust settles I’ll go full steam on teaching DEFI. I only suggest that form of coin custody and will help educate how to use only a DEFI exchange.
IMPORTANT. Again that is why I only recommend DEFI wallets for members from the start. I expressed the importance of learning why to protect ya word phrases. I did not follow my own rules. Lesson learned. :)