First Celsius then FTX, next is BlockFi. I’m guessing as people realise the risks and start pulling their money out more of them will suspend withdrawals and leave investors unable to access their money.
Anyone still got crypto in an exchange? Are you pulling out the old usb sticks or hittting the sell button yet?
https://www.bloomberg.com/news/articles/2022-11-16/blockfi-s…
The scams are becoming more sophisticated!
Actually, now that I think about it more. As more people charge back ShopBack, and ShopBack has passed the funds to Deliveroo already, ShopBack might be in for a liquidity crunch.
I have almost $200 from the 28 degrees deals recently, I’m cashing out just in case!
Time to withdraw
You're saying that Shopback's sales of Deliveroo of gift cards are bigger than their entire cash holdings?
I know nobody who uses Deliveroo. That's why they're dead here to begin with.
at least I still have my precious apes jv
yoooo cz must be rubbing his filthy mitts together at this - soon they'll be the only ones left - winner winner chicken dinner.
Not sure about that, if enough people start believing crypto is a scam and pull out biance won’t be immune too.
That’s why they looked at bailing out FTX. But when they looked under the hood and saw the 7-10billion black hole even they shat themselves and pulled out. They’re on shaky ground too I suspect, and they’re the biggest!
I guess, blockfi falling over was because they were too deep in with FTX … if the news is to be believed binance should not have the same problem
No the 'bailing out FTX' move was a false flag. It was intentionally done to stir up shit knowing full well they could never acquire FTX with US regulations.
i know right, cz really wanted to just twist the knife as he lands the killing blow
cant fault him i guess. dude is practically thanos with infinity stones level of power now.
@Jimothy Wongingtons: I don't like how CZ operates but he has been top class in execution. Also Sam deserves what was coming, he tried to round up all the chooks to slaughter by lobbying for crypto licensing and regulation in the US in secret what would leave many of his competitors out of the game or impaired. I guess CZ saw that coming and sent a message about what happens when you bite that hand that feeds.
Of course they pulled out, would you give 7-10 billion to a dodgy operator knowing you'll probably never see it again?
This is why there needs to be industry regulation though. What FTX were doing was basic bubble creation like the 70's and 80's, only with crypto. A regulator would have picked up on it long ago.
R/cryptocurrency before alll the crashing:
mentions regulation would be good: gets downvoted to hell
R/cryptocurrency now:
Yoooo we could do with some regulation
@Jimothy Wongingtons: Every time crypto crashes there is a pile of people who go "help, I thought this could never happen!". Purchasing crypto should come with a quiz they have to answer first showing that they actually understand what they're buying.
I really feel for the people who put serious money into crypto, but they're simply letting greed get the better of them, much like any other scam out there.
@freefall101: https://www.instagram.com/p/ClBbtdCBu8E/?hl=en
my favourite reaction video so far, because really at this point in time, all you can do is laugh :)
R/cryptocurrency now:
Yoooo we could do with some regulation
The cryptobros are finally finishing their speedrun of the last 400 years of finance scams, just to arrive at the same place that 'respectable' finance did generations ago.
why did regulator failed to pick up the 08 financial crisis from mbs cdo cds?
ohh because bill clinton removed the steven seagull act ? that's why.
what's coming next ? clo ? bto? or US corporate bond over $10T debt ?
that's yet to include derivatives products betting on all that hot air
@dcep: Regulators failed because they didn't have the power to oversee subprime lending. And yes, you're right, the US stripped back regulation which they should have kept in.
Well how about instead of throwing an alphabet soup at it you talk about them? What is the CLO exposure risk? Pretty minimal really. Bespoke CDOs? They're not common enough to cause 08 financial crisis risk. Corporate bonds? Yes that's a lot of debt but it's generally standard corporate grade debt.
If you're going to throw around random terminology, actually talk to the risk.
@freefall101: mbs cdo was risk-free with AAA rating , so they say.
when shxt hits the fan and suddenly they all became junk status
lookout for your "standard corporate grade bond" turns to junk in a blink
@dcep: As I already said, if you're going to throw around random terminology, actually talk to the risk.
Doom and gloom is great and all, but it doesn't change that regulation on crypto exchanges would have stopped this because it wasn't a market failure, it was an obviously dodgy set of transactions with no care for customers.
100% needs regulation but that regulation needs to be on exchanges and not on decentralised protocols themsleves… this has been the main gripe of crypto supporters. While the SEC (who it now seems has very close ties back to SBF/FTX) have been trying to stomp out defi protocols with weird regulation that fits with wall street but doesn't fit with a decentralised system huge centralised exchanges holding peoples money have been able to essentially gamble it away… one thing that shows with all these exchanges collapsing is that DeFi keeps humming along like nothing happened and the funds within the DeFi system go unaffected*
*yes, smart contract hacks do happen and funds are lost in DeFi but this is nothing that regulation could stop and will become more rare as the industry/technology matures. This is different to placing your trust in a guy like SBF who then takes your money and gambles with it.
How about Coinbase?
He's probably shitting himself. If there's a run on binance they are also (profanity). There are 65 billion tethers issued, good luck redeeming them!
I feel sorry for the individuals who have been affected but the sooner the whol crypto market completely implodes, the better. We will all laugh about it one day just like the 1990's tech wreck.
Are there any crypto exchanges who do not place your coins at risk or lend them out?
You don't hear of Commsec or CMC lending your shares out if you use them as a broker.
if you didnt want risk (of losing tokens in event of exchange implosion) just store them in a wallet instead.
ok.. I'm not familiar with crypto.
Does it cost anything to transfer your tokens/coins from a broker to your wallet (or vice versa)?
it costs less to transfer now than at the height of crypto mania but yes it does cost
just store them in a wallet instead
You mean like asking for paper share certificates and put them in a safe deposit box?
as in the core principle of decentralised crypto is self custody. Your crypto lives on an assress on the blockchain… if you store them in a wallet the seed phrase is the password that gives you permission to access whatever is in the address on the blockchain. If you are storing your crypto in an exchange then you don't have this seed phrase therefore you don't have the permissions to access your crypto on the blockchain - only they do. thats where "not your keys - not you crypto" comes from.
a real world example of this is hiding cash under the matress or in a safe in your house instead of keeping your cash in the bank.
Are there any crypto exchanges who do not place your coins at risk or lend them out?
I’m sure there probably are many. But the thing is, they all say they are safe! Even FTX said a few days before their collapse all clients money are safe etc etc.
So unless you have intimate knowledge of the people running the show how can you be sure? And if you are not sure why would you stay? Grab your coins and throw it on a usb and lock it up I say!
Even FTX said a few days before their collapse all clients money are safe etc etc.
reporter: is the money safe
ftx, visibly sweating: …yes.
Also, the issue was the exchanges using the high interest to reel people to deposit with them. Ive heard 15%, which is unheard of via traditional means.
yeap some of those APR were bloody insane for exchange owned tokens
Exchanges falling has been happening since crypto was born.
If you didn't secure your coins by now I don't know what else to say.
When you say secure your coins, you mean take it offline?
USB stick, like cash, carry it physically
Still possible to do a 51% attack or there was some cross chain hack a few weeks back.
You don't hear of Commsec or CMC lending your shares out if you use them as a broker.
That's definitely a thing. If you have a margin account, I believe I read somewhere that part of the terms of service is you agree to share lending
If people withdrawing their coin makes them go bust, then these businesses are just Ponzi schemes.
Ponzi schemes, just like crypto haha
If people withdrawing their coin makes them go bust, then these businesses are just Ponzi schemes
Banks have the same problem (Northern Rock is one of the finest examples).
The problem isn't liquidity (having cash on hand), it is the people running those exchange.
If the ASX decided to also do stock lending, then didn't take proper security over the assets, then decided to hedge their loans with dodgy assets. This is what happens.
Crypto people think fiat is bad. Crypto looks very bad.
100% these businesses are just ponzi schemes… decentralised crypto on the other hand is the future…
RekTrading has been very quiet lately?
Rekt probably went full short on the S&P and got punished.
pretty sure he said not to keep coins on exchanges but whatever floats your boat
He did say that. But then how could he also take a margin loan against assets that is not pledged and make staking / lending returns.
Rekt was full of contradictions. It is like a 13 year old who did all of his finance on youtube.
He said lots of things. Most of it was useless waffle, hence i didn't listen to 99.99% of it.
Between this, the FTX collapse, and just the general down trajectory of crypto in general, it might be time for a wellness check on the lad.
If only to confirm he still doesn't have any.
How safe is Coinspot? Got $500 $300 in there 😟
Seems to be pretty safe e.g. from here. They've completed a recent External Statutory Financial Audit, so that's a good sign. Of course you never really can tell in the crypto space, but at least the Australia-based institutions seem to be bound by some regulations.
Similar to Kraken who also had an the same audit. And do regularly
The exchanges that are left are now building proof of reserves dashboards for transparency. The beauty of blockchain is that it's all public and transactions can be tracked in realtime. They will list there wallets and we'll be able to see all their reserves and where they are going and coming from.
I imagine future regulation will make this a regulatory requirement. Guys like Kraken are getting ahead of the game and have been the whole time.
It is just the start, many more to come, countless number of shit coins, crypto exchanges were created in the wake of crypto hype over the last few years gotta go bust as soon as people realise all these were just a ponzi scheme.
That's a lot of tulips.
Biden promised to drop some hints. Then he forgot…..
Looks like this domino is the next to fall.
https://www.reuters.com/technology/crypto-lender-genesis-had…
One by one they will fall
When it comes to money and finance it need regulations and trust
Crypto got none of those 2 so sooner or later they all going down the toilet.
Like Deliveroo…
A lot of people on OzBargain invested hundreds each the other day… Now it's all gone…😔