FTX AND BINANCE
FTX Crypto Currency exchange is an American-based Cryptocurrency exchange that at the time of its collapse was the second largest exchange in the world, coming only second to the popular Binance.
Binance formerly operated an official exchange in Uganda but later shut down due to a regulatory policy change by the Bank of Uganda technically banning cryptocurrency trade in the country. Binance was also the largest single asset holder of FT Token, FTXs own crypto.
Many global analysts have described FTX as a pyramid scheme that siphoned billions of customer funds leading to its eventual declaration of bankruptcy and consequent closure.
Many Ugandans use Binance today to exchange and trade in cryptocurrencies. Therefore, this comes at a good time for those holding money at the exchange to evaluate their status when they still can.
The best option under the circumstances would be to withdraw their funds or coins from these public trust exchanges that literally own those assets to private cold storage if they still want to keep their crypto.
MOVING ON
A stitch in time saves nine. The government has no reach to access these companies in case of such large losses. Ugandan clients should not be overly confident in these crypto exchanges as many are basically Ponzi schemes.
They are no different from the BLQs of this world who merely learned from them how to scam people on a massive scale.
It’s advisable for those interested in continuing to trade in Crypto to follow industry best practices on security. More information on this can be found online.
