Yes, which means they are using a centralized third party instead of what's being extolled as the "decentralized, trustless" ecosystem. Maybe that's not as big of a feature as it is claimed to be?
As a reminder, this is what original comment was talking about:
> The actual users on-chain is abysmal and frankly, embarrassing.
Which isn't contradictory with most interaction being on a centralized platform.
I guess I just don't think that's a distinction worth making. The size of the ecosystem is what matters. The billions sitting in accounts denominated in that currency, and the daily total volume actually do matter, even if the trades are not mostly not happening on chain.
It matters if you want to draw a distinction between "payment processing system of the future" and "illegal casinos and gambling den", since these two should also be regulated somewhat differently. Evidence points to crypto being more akin to the second, and your comment also provides supporting evidence for that.