Kadan Stadelmann, the master technology officeholder of decentralized exchange AtomicDEX, believes information technology's only a matter of time before Binance implodes.

Atomic bomb

AtomicDEX is a decentralized exchange built on superlative of the Komodo (KMD) multi-chain platform. It claims to be "the industry's virtually advanced peer-to-peer mobile-first atomic swap protocol".

Talking to Cointelegraph, Stadelmann explained why users should not trust big centralized exchanges similar Binance:

"I absolutely do remember [Binance and other major centralized exchanges] is but like a ticking time bomb. We don't know what is happening with these funds, are they even in a secure and safe surroundings? But more than importantly, at that place is no transparency as to what happens with these funds in a business sense. Are these funds used in other business activities? Practise we know if in that location may be an investment firm behind this exchange using these funds so on?"

Centralized exchanges own your Bitcoins

Furthermore, he believes that because of the regulatory vacuum, the users may non even have the correct to know about how Binance handles their assets:

"At the end of the day, I think nosotros wouldn't even take the right to, to intervene or to alter something. If these funds were used for something other than storing them for you. Because there are no existent contracts around. There is no insurance with nigh cryptocurrency exchanges. Very few of them have regulation or the solvency analysis."

Stadelmann observed that, technically, centralized exchanges own their users' Bitcoin (BTC):

"Merely we're seeing that some of the biggest especially alternate cryptocurrency trading markets like Binance take a huge ability, huge control. And they are the custodians. They control these funds. And speaking technically, they own these Bitcoins.

Discussing Binance's involvement in the Steemit controversy, Stadelmann likened it to "Cosa Nostra" — an organized law-breaking syndicate, as well known as the Sicilian Mafia, with roots in southern Italy.

Merging of DEXs and centralized exchanges

Acknowledging the fact that the vast majority of trade happens on centralized exchanges, he expressed the hope that as DEX engineering science improves, this will alter:

"We actually added abilities to AtomicDEX so that yous can use it with a centralized exchange as well. I believe we volition see a existent coexistence between the decentralized exchanges, the centralized exchanges, and we'll run into a lot of different DEX systems. We'll exist likely using the lodge books and the volumes, the liquidity off the centralized exchange environment and ecosystem."

Recently in that location has been a trend towards users moving their assets abroad from centralized exchanges. Even so, the volume on decentralized exchanges remains meager for at present. While information technology seems unlikely that the DEXs will get dominant players anytime soon, borer into centralized exchange order books could exist a good short-term solution to heave liquidity.

Cointelegraph has reached out to Binance for comment, simply has non received a response in time for publication.