May 27
DAO ENVELOP Decentralizes
In alignment with our DAO principles , ENVELOP has taken the strategic decision to transfer the $NIFTSY token from all Centralized Exchanges to Decentralized Exchanges as of June the 1st 2022. The token will remain on DEXs and additional liquidity pools will be added for defi services on other platforms and on ENVELOP dapps.
This is an important landmark on our roadmap to becoming a fully Decentralized Autonomous Organization and we are proud to be innovating in the DAO community by disassociation of NIFTSY token from CEX’s.
DAO Envelop are of the consensus that the market is tech savvy and responsible enough to utilize and understand the risks involved with decentralized wallets.
Decentralization is preferable to centralization for DAO ENVELOP because it enables the flexibility and data needed to respond to market demands quickly and without bias.
Disadvantages of Centralized Cryptocurrency Exchanges
- Less Options
Many end up trading for safety on central exchanges, where there is not a lot of variety. The majority of cryptocurrencies are not available for trading on the majority of centralized exchanges.A small fraction of the total number of cryptocurrencies in the crypto universe.
- Regulations Risks
Centralized exchanges are government-licensed. They must follow government regulations.Some exchanges have KYC standards like banks. Centralized exchanges handle federal and state agencies.These agencies may access exchanged data.A lot of users who care about privacy are put off by these stringent rules.
- Risk of Bankruptcy
CEX’s money is a loan from investors. Every loan has a risk of default. When centralized cryptocurrency exchanges fail, investors may lose their assets.
- Hacking risks
Centralized exchanges are run by businesses that are in charge of their customers’ holdings. Large exchanges often hold bitcoin worth billions of dollars, which makes them an easy target for hackers and thieves.
Mt.Gox, which used to be the largest cryptocurrency exchange company in the world but shut down after 850,000 bitcoins were stolen, is a perfect example of this kind of thing.
Why is Decentralization the future?
- Anonymity and Freedom
Decentralized exchanges do not require customers to fill out know-your-customer (KYC) forms, offering privacy and anonymity to users. Independent of your location, beliefs and background you have the right to your assets.
- Prevent Market Manipulation
Decentralized exchanges stop market manipulation because they let people trade cryptocurrencies with each other. This protects users from fake trading and wash trading.
- Mitigating hacking risk
Users don’t have to give their assets to a third party when they use decentralized exchanges.So, there is no chance that a company or organization will be hacked, and users will be safer from hacking and theft.
What does this mean for the future of $NIFTSY?
The adoption and utilization of ENVELOP technology services and partnerships will allow $NIFTSY to mature and increase in value.
$NIFTSY will be made accessible to Defi pools and hybrid DEXs that perform all of the functions of a CEX and more!
$NIFTSY will be transferred from the hands of manipulators and panic sellers to those of rational, long-term project adopters and DAO ENVELOP members.
More about DAO ENVELOP and NIFTSY can be found on our DAO page and documentation here
