  In the evolving landscape of digital finance, the transition from centralized
to decentralized trust mechanisms, primarily driven by blockchain technology,
plays a critical role in shaping the cryptocurrency ecosystem. This paradigm
shift raises questions about the traditional reliance on centralized trust and
introduces a novel, decentralized trust framework built upon distributed
networks. Our research delves into the consequences of this shift, particularly
focusing on how incidents influence trust within cryptocurrency markets,
thereby affecting trade behaviors in centralized (CEXs) and decentralized
exchanges (DEXs). We conduct a comprehensive analysis of various events,
assessing their effects on market dynamics, including token valuation and
trading volumes in both CEXs and DEXs. Our findings highlight the pivotal role
of trust in directing user preferences and the fluidity of trust transfer
between centralized and decentralized platforms. Despite certain anomalies, the
results largely align with our initial hypotheses, revealing the intricate
nature of user trust in cryptocurrency markets. This study contributes
significantly to interdisciplinary research, bridging distributed systems,
behavioral finance, and Decentralized Finance (DeFi). It offers valuable
insights for the distributed computing community, particularly in understanding
and applying distributed trust mechanisms in digital economies, paving the way
for future research that could further explore the socio-economic dimensions
and leverage blockchain data in this dynamic domain.
