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RE: An Australian Trader Had USD$430,000 of Crypto Confiscated by the United States Government On BTC-e: A Timely Reminder to Withdraw Your Funds From Exchanges, or Use the Openledger DEX.
To be fair though, the Exchange Backed Assets provided by the OpenLedger web wallet (OPEN.TOKEN eg OPEN.GRC) are centralized User Issued Assets, it's entirely possible that the backing funds could be stolen or seized (unlikely due to OL's AML/KYC on fiat) where as Market Pegged Assets on the BTS DEX are entirely decentralized.
If we had sidechains on the BTS DEX, then GRC could be fully decentralized on the BTS DEX.
I'd still recommend OL over other exchanges & wouldn't hold any funds for a long period of time on a centralized exchange, only keep them on exchanges for the short period of time you need to trade.
I have wondered about that - is it public knowledge where the assets are stored? More importantly, are they kept in varying locations or are they all stored in a central location or cold store?
Yeah, they may be a little vague on that point. All the OPEN.xxx assets are OpenLedger backed assets for their UIAs. But still, choosing to trade on the DEX with OL as backer is many times better than a centralized ledger. For starters, the DEX ledger can't be seized, so you OPEN.xxx UIAs are still traceable and accounted for. With BTC-e, none can account for, publicly, what anyone was owning and none can prove it unless they can gain access to the BTC-e ledgers.