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Is the crypto community truly moving towards decentralization? Or is it just a pipe dream?

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Is the crypto community truly moving towards decentralization? Or is it just a pipe dream?
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Satoshi succeeded where Cypherpunks failed [or did they?], he made it so that we would be free from the clutches of centralization and move towards something better – decentralization. The Ethos of Bitcoin or its underlying technology was to move away from centralization and censorship and towards decentralization, where transactions wouldn’t be censored, and people would have financial freedom. The birth of Bitcoin gave rise to a community with similar ideas about decentralization and created the foundation of this community, but does the community still have those values?

The following incidents in the community raise questions on whether we are going back to square one.

Binance Leads The Way

The crypto-community on Twitter faced a crossroad due to Craig Wright and Calving Ayre’s campaign of lawsuits. The campaign caused a lot of heat and led exchanges to delist Bitcoin SV [BSV]. Binance’s CEO, Changpeng Zhao aka CZ was vocal about his views on the matter as he tweeted:

This tweet by CZ was followed by the actual delisting of BSV from Binance, the world’s largest crypto-exchange. Other exchanges like Shapeshift, Kraken, BitForex, Bitrue, Bittylicious, among others, followed suit. Yes, Craig Wright’s actions were questionable, but was the delisting of BSV justified in the cryptocurrency realm?

Yes, there was also the fact that most of the community wanted the exchanges to delist it, but looking at the matter from a “decentralized” perspective, does this move raise questions on censorship? How is this not similar to banks and financial institutions which censor transactions and even people? The difference between those institutions and “us” was that we were moving towards decentralization. But are we?

BitMEX Fiasco

Not too long ago, BitMEX, the exchange famous for its Bitcoin Perpetual contracts, was accused of allegedly trading against their customers. Considering the massive contribution of BitMEX to Bitcoin’s liquidity, it was an issue when the former faced this allegation. Hasu’s Medium Blog “A storm is brewing over the largest Bitcoin exchange” outlines how there could be foul play at BitMEX. The blog explained how BitMEX allegedly hid its desk engaged in market making [BitMEX came clear that it had a market-making desk].

The blog stated:

“While BitMEX admits the desk is a for-profit operation, they claim that its profit doesn’t come from trading… According to them, the desks’ goal is to be breakeven… and that the desk instead makes money from a service fee paid by the main business… Unfortunately, there is no way for the customers to verify the desk’s business model, as BitMEX has never opened up to an external audit of their business structure.”

In addition, the blog also questioned whether the desk wasn’t being held to the same “rules” as everyone and whether it created an unfair advantage over the customers. Moreover, the blog highlighted an important implication that the desk might have access to privileged information about the liquidation points which would help the desk move markets by placing a large buy or sell order to trigger “chain of liquidations”. However, BitMEX explicitly denied providing privileged information to the desk.

Binance’s “Decentralized” Exchange and Binance Chain

Binance announced that they would be launching the mainnet of their new public blockchain “Binance Chain”, where users can migrate their ERC20 tokens to Binance Chain. Moreover, Binance DEX will be powered by “Binance Chain” and will be a decentralized exchange, but according to an individual developer and Bitcoin enthusiast, the source code or binaries for both, the Binance DEX and Binance Chain, has not been released yet.



To top it all off, The Block’s Larry Cermark tweeted how Binance had silently changed their whitepaper to remove a clause about the firm using 20% of its profits to buy back BNB.

So Are We Truly Decentralized?

Although the crypto community talks highly about “decentralization”,  its “ethos” and how Bitcoin is moving towards being a “sovereign currency” and other cryptocurrencies are “censorship-resistant”, it still hasn’t truly achieved it, considering the power that exchanges have to act like “kingmakers”. However, if the above-mentioned “incidents” recur, are we truly decentralized?





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

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HitBTC responds to allegations of insolvency, refutes claims made by Redditors

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HitBTC responds to allegations of insolvency
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HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.

To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.

Referring to the BitcoinExchangeGuide article, HitBTC responded:



“A widely quoted article, in its entirety, is based on only 2 AML cases. One of them was initiated as part of the investigation into the December, 2018 BTCP security breach, at the request of the coin’s core team. Unfortunately, there is no clear indication of the nature of the second case that can be discerned from the article. The author of the article failed to track the deposit/withdrawal dynamics that did not uncover any irregularities. A simple block explorer or our public System Monitor would suffice for these purposes”

Additionally, referring to the altcoins being added and removed from the platform, the exchange said that they were honored to work with a diverse range of projects, however, since the crypto sphere was still nascent, there were lapses in their judgment in assessing the integration partners. With the above-mentioned prominent cases, HitBTC also addressed other topics.

@ProofofResearch replied to HitBTC’s blog:

“Is there a reason why you’re unable to tell people us where your Bitcoin storage is at? If what I published is as untrue as you claim it is, then providing a wallet address where your Bitcoin funds are stored will go a long way in *proving that*.”





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