Common factors to know that an exchange is likely going insolvent.

[Bobcrypto]

I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
As a good user, i sent mails, but unfortunately no solution. I had complaint that the exchange is likely going insolvent because of too much issues, (especially the inability for users to withdraw their funds), on their Telegram community but i was restricted. However, as at today they had going insolvent.

Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2  No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.

[hugeblack]

If the withdrawal period exceeds more than an hour without logical reasons such as maintenance or suspending your transaction for reasons related to KYC, this is a sufficient reason to stop using that exchange and encourage others to do that.


No matter how bad the platform is, customers should not face problems in withdrawing.


As for the Common factors to know that an exchange is likely going insolvent:
Delayed support team responses or inaccurate responses.
Changing the terms of use without warning users.
Obvious security flaws.
Increasing negative reviews.

[Sim_card]

I don't bother to show too much commitment on any exchange that is not functioning the appropriate way because of I don't play with my funds and I will immediately trnasfer my funds and leave the exchange. There are many reputable exchanges out there that needs customers.

[_act_]

I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.

The moment you discover for this you would have taken your leave, you don't wait till you see the worst happening, instead you take your leave before the worst get unleashed, one thing you should know about centralized exchange is their way of changing of policies and request for kyc information, may be you're unable to fulfill some of the terms for that or they just make some nasty delay without prior notification for such unnecessary delay.

[Coincollector]

I have been using one particular CEX exchange for about two years without issues at beginning, unfortunately, earlier this year, i began to notice certain drawbacks starting from withdrawal delays, that take more than one week; and some users even complaint of more than two months withdrawal delays.
As a good user, i sent mails, but unfortunately no solution. I had complaint that the exchange is likely going insolvent because of too much issues, (especially the inability for users to withdraw their funds), on their Telegram community but i was restricted. However, as at today they had going insolvent.

Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2  No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.

You've said it all. In addition I'll advise you do your research, check out on chain analysis and data from CMC/cg etc. follow sentiments on Twitter.. above all diversify

[Asiska02]

Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2  No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.

Personally, I haven’t used an exchange that has crashed before, so I wouldn’t be able to tell more of an exchange is going to be insolvent in some time to come. I haven’t been more familiar with more exchanges and I’m use to exchanges with reputation and a lot of user base, because those are what will determine more better the potential of the exchange going to insolvent soon or not. Exchanges has there own drawbacks and the way they handle it will reflect more on how trustworthy they can be to use for long. When there is  already a lot of complains about an exchange especially when it has to do with withdrawals of funds from the exchange portfolio, it becomes very hard that they’re not going to be bankrupt soon.

[Crypto Library]

Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2  No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.

Just as humans cannot detect any color except black with their eyes closed, I believe it is not possible to identify in advance that a centralized exchanger will go bankrupt. This is my personal opinion.
Suppose if we memorize the ftx  exchanger incident on the past no one guess that will happened before one day ago at least I don't see in my eyes any people who thought that.  And where I want to say the reason is the centralised exchangers don't provide the clear proof of Reserve and on the other sent they spends lots of money for their advertisement and marketing.

[Mia Chloe]

There are different and numerous CEX and DEX out there but the idea is people tend to make use of those with a bigger market and ecosystem and it's very understandable because issues like the ones you mentioned above hardly come up when you make use of bigger exchanges. The actual issue that's common is when you break their rules because on the other hand they usually tend to be very strict about them.

Another reason why people go for bigger CEX is the idea of have flexible options ranging from P2P transactions to trading regular crypto pairs. Most times smaller exchanges don't offer these and when they do they likely charge heavily for fees.

[hugeblack]

Suppose if we memorize the ftx  exchanger incident on the past no one guess that will happened before one day ago at least I don't see in my eyes any people who thought that.  And where I want to say the reason is the centralised exchangers don't provide the clear proof of Reserve and on the other sent they spends lots of money for their advertisement and marketing.

There are indicators that the platform is not going in the right direction, and since you know these indicators, it is better not to wait and withdraw immediately. As for the exact date of the platform's collapse, it can only be known with information that is often not available to the public.

[TomPluz]

Since we are all based online and there is no way for us to personally go to an exchange's real office if there is one, withdrawal issues can be the biggest reason that I would consider the most vital red flag for an exchange. To me, an hour delay can already be unacceptable and definitely a week can already be so unbearable enough to call an exchange a big scam. This is one of the many risks while we are using a CEX and that is why we have to be careful and if possible to deal with only reputable ones with good track record of not letting their customers down a lot. In an insolvent exchange, instead of us exchanging our digital assets into another asset we are being shortchanged. Based on my experience, TOKPIE can be considered as a bad exchange not worth of anyone's trust.

[Crypto Library]

There are indicators that the platform is not going in the right direction, and since you know these indicators, it is better not to wait and withdraw immediately. As for the exact date of the platform's collapse, it can only be known with information that is often not available to the public.

I will not disagree with you that there is  no indication before a centralized exchanger goes bankrupt, there will definitely be some indication but people will not have the confirm news. Suppose there have been many issues with Binance before, especially the jailing of Binance's Ex ceo CZ when got arrested which was a big shock to Binance users but in that case Binance survived. On the other hand, FTX exchanger only went bankrupt after a small announcements.

[Faisal2202]

Now, to detect a crashing exchange, whether Dex/CEX, you will notice two common issues,
1.Scanty users. The number of users on an exchange determined the exchange's revenue capacity to settle operational cost and other expenses.
2  No liquidity, and that is, no 24hours trading volume. Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.

Can you share with us what exchange you're talking about? I mean, this can save others who have not yet deposited on that exchange from extra problems. Overall, delaying withdrawals for months is really a big problem, and it raised concerns about their liquidity. Did they just have their audit of reserves or not? It must not be any of the Tier 1 exchanges!

I was using Binance and Kucoin at the time mainly, and they both had their audit of reserves. Overall solvency of a good exchange is not healthy for the overall market, it can dump it. I think liquidity is the main reason for the solvency and if the exchange has that problem then it's time to leave it.

[electronicash]

There are indicators that the platform is not going in the right direction, and since you know these indicators, it is better not to wait and withdraw immediately. As for the exact date of the platform's collapse, it can only be known with information that is often not available to the public.

I will not disagree with you that there is  no indication before a centralized exchanger goes bankrupt, there will definitely be some indication but people will not have the confirm news. Suppose there have been many issues with Binance before, especially the jailing of Binance's Ex ceo CZ when got arrested which was a big shock to Binance users but in that case Binance survived. On the other hand, FTX exchanger only went bankrupt after a small announcements.

FTX was deliberately done.  with just a simple dare of CZ the exchange went panic but they market needs a reason to crash. but if its a small exchange that won't affect the market when it suddenly disappear, the business will try to save itself. i would be surprise if the small exchange will start advertising in a sneaky manner. it could be an indicator.
 
you could also look at it as indicator that they are insolvent if this small unimportant exchange will request another KYC verification which the purpose is to just see whether users really are compliant. they seize the coins of those who are not compliant and lie about their identity.

[yhiaali3]

Low users and lack of sufficient liquidity are not necessarily an indication of the failure or bankruptcy of an exchange, especially if it is new. I have used exchanges with few users and low liquidity many times, but I did not suffer from withdrawals or loss of funds. But of course, it is better to stay away from such exchanges.

On the other hand, there are exchanges that were large and had a good reputation and high rank in the market, but they were still down and users' funds were lost either as a result of bankruptcy or hacking, so it is better in general to stay away from centralized platforms.

[Cryptsafe]

I have come to realise that ones the customer support service of any organisation begins to delay in responding to customers complaints, that alone is a big red flag to move out of leave them because of you still remain there waiting to see the end, you might get trapped. This was the case of OP, if OP had known he would have withdrawn all his funds immediately he began to note those observations but however, I believe the ones such begins to happen and the cex puts withdrawal on hold, then you know they are in to a possible financial crises which they do not want to say just not to scare away their customers but they forget that the same strategy or measures implored will still make their customers sceptical about their actions and raise alarm on their observations about the cex approach.