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Prominent technical specialist and former employee of the CIA Edward Snowden shared his view on the cryptocurrency industry, but he warned his followers that he has no idea what he is talking about and they should not consider it financial advice.
According to Snowden, he feels like the market will retrace back a bit, reaching price levels we saw previously. However, his prediction is not only tied to Bitcoin and its price performance. Snowden believes that the industry should shift toward safe DEXes after the FTX crash.
Why DEX?
Decentralized exchanges are alternatives to centralized exchanges and are managed purely by smart contracts — without a third party. Thanks to the complete "dehumanization," the DEX in its original state should not ever face issues similar to FTX's as its reserves never go below users' deposits.
Practice safe DEX.
— Edward Snowden (@Snowden) November 14, 2022Advertisement
However, DEX users have to tolerate certain risks that the CEX's structure negates. Technically, your DEX account is nothing but a multi-coin wallet that connects with various price oracles and allows exchange with other wallets. If you forget or lose access to your account, it will be gone forever as no third party will ever be able to provide you with a new password.
Alex DovbnyaRegulation is yet another factor that DEX investors should consider. Because of a series of hacks and rugpulls of unaudited decentralized exchanges, European and U.S. regulators cracked down on the industry, making the functionality of most DEXes limited and causing their users to face consequences in certain jurisdictions.
Back in 2020, Edward Snowden predicted the upcoming rally of the first cryptocurrency that dragged it to the current all-time high of $69,000. However, Snowden stated that he has zero financial education, and people should not really consider his thoughts as serious prediction or analysis.
Tomiwabold Olajide
Gamza Khanzadaev
Dan Burgin
U.Today Editorial Team
Vladislav Sopov