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

[Crypto Library]

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.

I also mean that by the "small announcement" the announcement was the CZ step on the investment on FTX exchanger. But what I think about the FTX exchanger even if CZ don't do anything like that I would say in the future once a time FTX will crash because the way they run their business wasn't say that they won't go through the bankrupt.
The amount of money that FTX exchanger showed in their proof of reserves was much less than the amount of money in their reserves and what was more interesting was that they spent a lot of money on their marketing and various activities from which they went through a lot of losses due to not getting the expected results. And the main reason for their crash was an announcement by CZ.

[Rruchi man]

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.

Be it an exchange, casino, or any other online service, immediately you start seeing that they are having a lot of users with unresolved complaints; that should be your indication to start considering exiting for another service provider before you become a victim too. Red flags should not be tolerated.

[taufik123]

Be it an exchange, casino, or any other online service, immediately you start seeing that they are having a lot of users with unresolved complaints; that should be your indication to start considering exiting for another service provider before you become a victim too. Red flags should not be tolerated.

You're right, it's about how a service has a complaint and then they can address the problem or not.
Because several times I got stuck on an exchange that frustrated me because withdrawals that could not be done quickly for some reason that certainly did not have to happen.

It took me more than 24 hours to make a withdrawal, even though the account I was using did not violate anything and the funds I wanted to withdraw were emergency enough for me to use on other investments.

I then left the CEX and promised not to use it again because it was an indication that the CEX would go bankrupt or become a scam eventually.

[enwi]

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.

Be it an exchange, casino, or any other online service, immediately you start seeing that they are having a lot of users with unresolved complaints; that should be your indication to start considering exiting for another service provider before you become a victim too. Red flags should not be tolerated.

The fact that many people wrote complaints with no sign of them being handled by a service is an encouraging indicator. While consuming platforms we are supposed to make sure that the concerned platform has a good reputation and can actually provide good support. If such marks of nonchalance are noticeable, the search for a more trustworthy option is the correct approach. We do not have to wait when all the problems start to impact, but we should always make assessment of the services we are utilising. By taking this step there will be a likelihood of managing risks and make the experience safe and comfortable.

[SmartGold01]

When there are no new listing on the exchanges be it Centralized or Decentralized you should avoid such exchange because there is every likelihood the exchange will soon cease operation. Most times when they start charging exorbitant fee when making withdrawal, and also delaying our payment as you have already outlined before they we should be careful while dealing this exchanges. It's better to avoid than falling for them at low cost.

[robelneo]

As for the Common factors to know that an exchange is likely going insolvent:
Delayed support team responses or inaccurate responses.
Increasing negative reviews.

I consider these two as a big concern; exchanges live on feedback and reviews; once the negative reviews keep coming, that's a sign that something is wrong or amiss.
OP did not mention the exchange when he should; this is to warn other users so they will avoid this exchange, but what I'm sure of is this exchange is not likely to be on the top 20 exchanges, to avoid this, we should only pick the top exchanges in the industry.

[Stompix]

Besides this few points that i have stated, kindly give your thoughts on how to detect a likely crashing exchanges.

Despite what everyone says, it's pretty hard to tell so, just look back from Bitcoinica days to FTX, so the thing is:
- a crappy exchange in danger of being insolvent would show enough signs not to put your money there in the first place
- an elaborate scam that uses users's money for their plaything will probably go undetected until it's too late, see MtGox, Celsius, FTX.

And signs like users complaining that they can't withdraw their money means it's pretty late to do anything.

[ZAINmalik75]

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.

The first rule should be to see how much liquidity a exchange has we can check it from any tracker like CMC and CG. Following the sentiments on twitter is not good because that's exactly where these exchanges shill their project to get the attention they will say we don't require KYC and with $10k plus deposits we will give huge rebates etc.

All these offers are phishing offers so never deposited huge funds on such exchanges and regularly track the reserves of an exchange where you have been holding your funds. However, we should not hold our funds in one exchange because of the solvency issue. The golden rule here is we don't own the keys we don't own the funds so for trading we should choose tier 1 exchanges, and for holdings wallets should be chosen.

[Zed0X]

I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.

[armanda90]

I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.

Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.

[Mia Chloe]

I consider these two as a big concern; exchanges live on feedback and reviews; once the negative reviews keep coming, that's a sign that something is wrong or amiss.
OP did not mention the exchange when he should; this is to warn other users so they will avoid this exchange, but what I'm sure of is this exchange is not likely to be on the top 20 exchanges, to avoid this, we should only pick the top exchanges in the industry.

Yes this too is another point. I think generally be it an exchange or not it's very important to check for the reviews on a particular service or app before making use of them. Also just like bad reviews shows that such an app or service isn't worth it, sometimes too few reviews could be a a possible sign too that their offers isn't good enough since we have also seen cases where some developers pay to get reviews.

Generally it's not even safe to make use of an exchange that is too low on popularity.  Aside from risking your funds you also face the threat of risking your privacy and data via the KYC you may have gone through.

[satpol_PP]

I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.

Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.

It is better to choose the best exchange currently and has a good reputation like binance to store our crypto assets to be active in trading.
because if we use an exchange that does not have a good reputation, we may lose our funds. FTX is an example in the past, and we should be careful in choosing an exchange.

[MRY]

I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.

Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.

It is better to choose the best exchange currently and has a good reputation like binance to store our crypto assets to be active in trading.
because if we use an exchange that does not have a good reputation, we may lose our funds. FTX is an example in the past, and we should be careful in choosing an exchange.

Selecting an exchange that will store the cryptocurrency requires us to pay much attention so that we do not encounter unpleasant shocks. This means that a good reputation on such a platform should give a measure of experience that many people have tried and thus gives that feeling of safety while handling our resources.

To solve for trust issues related to platform management failure or loss of funds on the chain, utilising an exchange with already a large reputation and trust from users worldwide is beneficial. However, we must still be careful because practise demonstrates that not all platforms are safe. Thus, selecting a reliable location, we can devote more time to correct and safe business and investing strategy.

[electronicash]

I would say recent exploits on the platform as another factor for an exchange's potential insolvency or bankruptcy. You can monitor how they handle the refund procedures and if they come up with excuses, then you can assume. It still depends on the significance of the amount stolen to their total reserves though.

Classic problem with exchange when closing the market operation will announce about bankruptcy, I think can't acceptable reason exactly last exchange scam FTX announced about their bankruptcy for easily not refund the user assets.
Not difference yet with scam or bankruptcy because the exchange not refund the member assets, difference with some exchange bankrupt like bittrex but have deadline around five months later for user withdraw their fund although market not allow for trading.

It is better to choose the best exchange currently and has a good reputation like binance to store our crypto assets to be active in trading.
because if we use an exchange that does not have a good reputation, we may lose our funds. FTX is an example in the past, and we should be careful in choosing an exchange.

after FTX collpse that's when Binance also suggested the SAFU AFAIK.

it should have been implemented already where exchanges have their funds for public to know whether they have it for security of their users. but there is no authority that will coerce exchanges into revealing what they have though.

Binance eventually benefited to the FTX crash making them looks like the most trusted exchange.

[PX-Z]

after FTX collpse that's when Binance also suggested the SAFU AFAIK.

There's already SAFU before FTX was created, if that's what do you mean by "suggested".

...Binance eventually benefited to the FTX crash making them looks like the most trusted exchange.

Actually, they are (most trusted exchange), to begin with, and they are already the largest exchange by volume even before FTX was created, they just got lots of issues lately but it looks like they never got affected it all.