Millions of dollars have been stolen in exchange hacks. Curiously, all of these exchanges that have been compromised are centralized. I haven't found a single decentralized exchange which has been hacked like this, and this is likely because decentralized exchanges don't take custody of funds.
There used to be a lot of valid reasons to not use decentralized exchanges. They had low volume, they didn't have effective customer support, and had few trading pairs compared to their centralized counterparts. And, importantly, almost every DEX had no BTC blockchain support.
But that was in the past. Today, decentralized exchanges have better capabilities. The technology and community are powerful enough that we can confidently self the liquidity shifting support to decentralized exchanges. But volume and liquidity is still a problem. This is something that we can change. Expound on the previous sentence.
Case in point, Binance recently launched a DEX of their own. When the top centralized exchange creates a decentralized exchange, that's huge! It shows the entire cryptocurrency community that Binance believes the future of cryptocurrency is decentralized. And we already know that for cryptocurrency to truly succeed-- for it to bypass governments, banks, and borders-- it has to be decentralized.
But I have one issue with Binance's construction of a DEX. Binance, as an organization, is very centralized, and they're continuing to operate their centralized exchange. I can't blame them. But just like the recent Tether shitshow that is partly to blame for the radical crypto price volatility of late, something smells fishy. A giant, centralized organization might be able to make decentralized exchanges viable, but their central control of a decentralized entity won't work in the long run.
There are a few legitimate DEXes right now that have unique ways of getting more volume. Idex has never had much marketing or promotion, but it has had the top verifiable DEX volume for months. Radar Relay has tons of educational material on their site. Ethex.market is planning on releasing a generative fee token which users earn by trading.
It's up to us to make decentralization a reality. We can't expect centralized institutions to try to dissolve themselves by supporting decentralization, so we have to take the initiative. It's time to take DEXes a lot more seriously.