Maybe a good thing that companies in that space are going down. Clears the way for more decentralization.
Centralized crypto "banking" institutions are the worst of both worlds. You are giving away your money to someone else, and there are no regulations to protect you from being screwed over by them.
With DeFi (decentralized finance) you have transparency over what the smart contract does.
(Of course you have to be careful because a lot of things claim to be decentralized but are actually centralized)
No, you don't. People find subtle bugs in open source code all the time, some of them disastrous. Unintentional bugs in smart contracts have lost tens of millions of dollars multiple times; imagine what you could accomplish with intentional holes.
Parity lost $280M alone. https://www.cnbc.com/2017/11/08/accidental-bug-may-have-froz...
There are many people in crypto who aren't fond of companies like Coinbase or OpenSea.
The helped to make things a bit more mainstream, but they aren't paragons of decentralization.
The infrastructure worked. The concept did exactly what it was supposed to. 100% successful.
.. and yet lending to unreliable borrowers that no-one else wanted was still a stupid idea.
Or “De-Fi” as the children call it.
Reality: The public trust on crypto erodes more and more when one of these companies goes down. There is no greater fool to make your hodl-ed assets valuable.
Quite the opposite actually.