According to JPMorgan experts, the dominance of centralized platforms over their decentralized counterparts will continue despite the collapse of FTX.
To justify this statement the experts of the bank have noted the significant dependence of the functioning of DEXes on CEXes. They think it will take a long time until price determination moves from centralized to decentralized exchanges.
The bank’s strategists have also noted that slower transaction processing speeds, asset pooling technology, and order-tracking features are likely to limit the participation of institutional clients.
They cited the lack of stop orders, the use of blockchain oracles, vulnerability to hacks, exploits, the need for over-collateralization, and the systemic risks associated with the automatic liquidation cascade as additional barriers to wider popularization.