Decentralization is one of the main reasons why cryptocurrencies became popular in the first place. It makes avoiding intermediaries possible and increases trust between two parties even if they want to keep their anonymity. And while decentralization can make blockchain the “trust machine”, main players of the whole crypto industry — crypto exchanges — are centralized.
Not only this fact is quite ironic, but it also leads to major problems. Centralized crypto exchanges are in many ways no different from traditional exchanges and banks that Blockchain is trying to disrupt. Whatever amount of cryptocurrencies a user holds on an exchange actually belongs to an exchange per se, and if anything, from hacker attacks and/or technical difficulties, happens — a user can lose all of his holdings.