Extraterrestrial Token

The week-long FTX drama has finally come to an end, and the FTX thunderstorm has also triggered users and investment institutions to think about the security of centralized trading assets, and Elon Musk commented on the FTX incident in a Twitter Space interview hosted by Mario Nawfal last weekend, Musk emphasized; If it’s not your key, It’s not your wallet, if you have cryptocurrency, you should put it in a wallet that you control, not an exchange, which is wise.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/2b4541a3139840e5984c5b219d8272f4.png" />Musk’s idea coincides with that of the SuperEx team. SuperEx launched a decentralized wallet authorization function in early September. As long as users back up their mnemonic words or private keys, they can control and dominate their encrypted assets at any time. The platform has no right to control user assets, and will not be affected by platform security, political or other factors. The leakage of a user’s private key will not affect the asset security of other users. The assets between users are completely independent and isolated.In the face of a crisis similar to FTX, the self-control and independent isolation of encrypted assets is the solution proposed by SuperEx for users. Looking back at the entire process of the FTX incident, the following two reasons are the main culprits:(1) It implements a large number of risk transform and liquidity transform functions, and uses customer funds as high-risk and low-liquidity asset investments.(2) The run pressure was completely underestimated, allowing what appeared to be ample liquidity reserves to be depleted in just a day or two.(3) SBF was once known as the “nanny of the currency circle”. It founded the FTX exchange in 2019. It has been ranked among the top three in the world in the currency circle. It has rescued Block-Fi, Voyager and other troubled companies in times of crisis. According to statistics, SBF The total assets of about 15.6 billion US dollars, but these assets disappeared overnight.There are different opinions in the market about the cause of the FTX crisis, but the data will not deceive people. We speak from the data:From the FTX balance sheet disclosed by the Financial Times, before the outbreak of the user run, FTX had about $24 billion in assets, including: about 6 billion in liquid assets, about 15 billion in various encrypted assets and 3.2 billion in various liquidity asset. During the same period, FTX had about $14 billion in liabilities, including: at least $5 billion in USD or USD stable currency liabilities, and a large amount of BTC and ETH liabilities. Another set of data shows that the average daily fund withdrawal amount of FTX is about 250 million US dollars per day!From the data point of view, is FTX stable?The answer is that if there is no accident, FTX, which has a liquidity pool of 6 billion US dollars, can persist for nearly a month even without continuous capital investment, which is enough time for FTX to respond to any crisis.Therefore, FTX did not realize the seriousness of the matter at the beginning, but from this set of data, we can see a problem. As the world’s second largest exchange, why does the liquidity pool of FTX only have 6 billion US dollars? Generally speaking, the liquidity funds (non-locked) stored by users in FTX cannot be used by FTX, so the liquidity pool of FTX should not only be 6 billion U.S. dollars, but about 16 billion U.S. dollars, which is enough to meet the exchange of all users.However, when the withdrawal amount of 250 million US dollars per day was on a normal trading day, in the face of the “selling panic” created by Changpeng Zhao and more and more debt disclosures, on November 6, FTX suffered a 25 times daily withdrawal. In just a few days, the net outflow of funds reached $5 billion, including at least 20,000 BTC and a large number of stable coins. This directly led to the fact that the liquidity of FTX was less than 1 billion US dollars. Along with the run, the price of FTX plummeted. At this time, FTX is not only a liquidity crisis, but a complete repayment crisis. In the words of the financial circle: insolvent!From the data, we can draw the following conclusion: FTX’s private misappropriation of users’ liquid assets is definitely a matter, so where did the money go? The whereabouts of the funds can be seen from Sam Bankman-Fried’s answer in an interview. Sam Bankman-Fried revealed to reporters that Alameda owes FTX about $10 billion. FTX made a loan to Alameda using funds deposited by customers on the exchange for trading, which Sam Bankman-Fried admitted was a wrong decision.Obviously, FTX privately embezzled users’ liquidity assets and transferred them to its sister company Alameda, which led to the subsequent collapse of FTX, which also brought shocking vigilance to other centralized exchanges, that is, in the free market, centralized entities must Implement a 100% reserve ratio, because non-100% reserves are bound to be squeezed by competitors. However, in the face of such an incident, we should look at the essence through the phenomenon. On the surface, it is because FTX lent user assets, resulting in a reserve ratio below 40%, making it unable to face unexpected crisis, but the essence is: FTX should not and has no right to misappropriate the encrypted assets stored by users on the FTX liquidity pool. This is the most basic crisis of trust. It is no wonder that Musk would say: “Not Your Key, Not Your Wallet”.In this regard, the security of decentralized exchanges is much higher than that of centralized exchanges. Let’s take SuperEx as an example. In the face of the security of users’ funds, SuperEx has made two security guarantees. The first aspect: transactions on the chain, information and transparency.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/abbd306f10be463abb55b1b1e3a91559.png" />As a decentralized exchange, SuperEx Dex supports multi-chain one-click connection to the user’s decentralized wallet to authorize the transaction of perpetual contracts, spot, etc. SuperEx Dex is responsible for providing liquidity, the matching transactions are completed by smart contracts, and the settlement of transactions is completed on the blockchain.At the same time, the transaction information is uploaded to the chain, and the transaction information can be publicly queried on the blockchain, and cannot be tampered with, and the transaction information is safe and transparent.Compared with FTX, SuperEx Dex effectively avoids the risk of private misappropriation of assets in centralized exchanges, and all transaction information is open and transparent!The second aspect: Super Wallet: The integrated decentralized Super Wallet is a multi-chain hierarchical deterministic wallet (Hierarchical Deterministic) that has achieved perfect interaction with the SuperEx transaction side. No matter what irresistible factors SuperEx experiences, it will not touch the user’s encrypted assets stored on the Super Wallet . As long as users have backed up their mnemonics or private keys, they can control their encrypted assets at any time. The platform has no right to control user assets and will not be affected by platform security, politics or other factors. The disclosure of a user’s private key will not affect the asset security of other users. The assets between users are completely independent and isolated. Super Wallet is an important part of the SuperEx ecosystem. Provide security for users to use Dapp Open System and large-value encrypted asset storage.At the same time, as mentioned at the beginning of the article, in order to fully cover all users, SuperEx launched the decentralized wallet authorization function in September, fully realizing the self-control and independent isolation of encrypted assets for all SuperEx users. Compared with the centralized exchanges represented by FTX, all users’ funds are stored in the transaction liquidity pool, and the funds are completely controlled by FTX. Users cannot even use their own funds without FTX’s consent. SuperEx’s Super Wallet effectively eliminates such risks, and there is no risk of running, because the funds are always in the wallet controlled by the user. 100% safety of funds is SuperEx’s constant pursuit and commitment!The collapse of FTX completely exposed the problems of centralized exchanges to the whole world. Fragile ecology, overly centralized exchange officials, opaque asset dynamics and transactions, weak supervision, etc., can be said to be the currency circle’s Lehman Moment’, will undoubtedly produce a bigger quake in the currency circle than Terra (Luna) after falling into a “death spiral”. Faced with such a tragedy and endgame, the market is calling for more and more decentralized exchanges such as SuperEx. To regain the confidence of users and institutions in encrypted assets, the first thing to solve is: trust, security, and transparency.At the end, to borrow a quote from Sam Bankman-Fried’s aftermath: there were many things I wish I could do differently than I did but the largest are presented by these two things: the poorly labeled internal bank-related account, and the size of customer withdrawals during a run on the bank.Also, a word of caution:SuperEx eliminates risks from the source is the best way to ensure 100% safety of user funds, please don’t wait until something happens to regre it!

In the face of the FTX thunderstorm, Musk emphasized ”if it’s not your key, it’s not your wallet”

SuperExet

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