I still don’t understand how CeFi gained this much power when DeFi has many more benefits and features.

The whole concept of this market is built around decentralization and centralized exchanges are literally government representatives in the crypto space since they are 100% government compliant.

This means if the government issues an order, they can’t refuse is or else they’ll get taken down and severely sued by the SEC.

And that’s not the only issue. Fundamentals aside, DeFi has WAY more benefits than what CeFi can offer

Take something like GNS and Synfuture, the main trading platforms I use. You dont need KYC. You have a ton of coin diversity. You can leverage in the triple digits. You can even trade Forex

As for CeFi? You most definitely need KYC before anything else (literally giving the government all the info they need about you). Coin diversity is laughable especially on exchanges like CoinBase and Kraken. And leverage options are extremely low with some countries banning leverage completely.

Now regardless of whether leverage is a “good” or “bad” thing, banning/restricting it is still censorship, something that this market was made to escape from.

How CeFi came to gain this much power and influence when DeFi provided all these benefits? I have literally zero clues on that…