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Voyager suspends trading, deposits, withdrawals, and loyalty rewards

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Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#81

Post by capableweb »

xur17 wrote: post #18
barnbuilder wrote: post #10

Earlier quoted context omitted.

The people getting wiped out by the collapse of Voyager, Celsius, etc. were not putting their money on bitcoin. They were giving it to a custodian who thought they could beat bitcoin by investing in altcoins (or lending to those who do so). This is definitely not "everyone's strategy"; plenty of us bitcoiners have been warning against this sort of irresponsible activity for a long time.

Exactly. And if you had half an ounce of sense, you would have withdrawn your deposits from these platforms when UST and then Celsius collapsed.

> withdrawn your deposits from these platforms when UST and then Celsius collapsed

Which ironically, is why more of them keep (and will keep) falling. It'll be a cascade of withdrawals across the ecosystem, and all these weak platforms will rightly go under. Looking forward to it.

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#82

Post by dragonwriter »

AmericanChopper wrote: post #67
woodruffw wrote: post #63

Earlier quoted context omitted.

Pointing to the list of failed banks from the website of the government agency that insures them and makes customers whole doesn't convey as strong of a point as you might have intended.

> makes customers whole *As long as whole is less than $250k.

> As long as whole is less than $250k.

Usually, no

As an insurer, sure, $250K per account owner per ownership class. (Notably, single and joint accounts are separate ownership categories, so with proper distribution of balances, a married couple with single and joint accounts at one institution, is covered up to $1,000,000 in total. $250k each in the individual category, and $250k each in the joint category.

But it also acts as a receiver of failed banks, and in that capacity can facilitate the sale of assets tied to the uninsured portion of the debts represented by account balances. Usually, this ends up with making account holders whole without limit.

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#83

Post by Jon_Lowtek »

tick_tock_tick wrote: post #61
iskander wrote: post #27

Earlier quoted context omitted.

What's the current state of those capital requirements in US banks? Is this the latest requirement? https://www.federalreserve.gov/newsevents/pressreleases/bcre... (4.5%) And how do banks actually measure up to this minimum?

The Fed runs stress tests all the time and currently the banks are preforming perfectly during them.

which means the tests are not stressing. That is a good thing as they test for conditions that previously resulted in crashes. But it could also be a bad thing if the banks adapted to formally pass tests while straining their business with schemes that are overlooked

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#84

Post by [deleted] »

AmericanChopper wrote: post #76
arcticbull wrote: post #71

Earlier quoted context omitted.

Yes, that's the worst case - however in the real world the FDIC and the OTS (Office of Thrift Supervision) does their best to ensure nobody loses any amount of money regardless of their account balance. In the case of WaMu in 2008 for instance, the OTS took possession of the bank and sold it to JPMorgan Chase. They didn't draw on the deposit insurance fund and everyone stayed whole. [1] "According to FDIC spokeswoman…

> No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933 This is just a truism because all insured deposits are insured, and all non-insured deposits are non—insured.

[deleted]

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#85

Post by phkahler »

ansible wrote: post #4

I sometimes wonder if I'm the only one who just wants a bank to be a bank. I've been with the same relatively small regional bank for 30 years. I have a checking account, savings account and that's it. They've been stable this entire time, and I've never worried my money was going to disappear. As another sign of being an old man, I'm old enough to remember the phrase "as safe as money in the bank". You see, when I w…

If we get interest rates back up to better levels (IMHO 6 to 7 percent mortgages) they might even be able to pay interest on savings without selling loans!

Unfortunately lowering rates is used to "fix" the economy. This is a failed strategy.

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#86

Post by lamontcg »

dragonwriter wrote: post #82
AmericanChopper wrote: post #67

Earlier quoted context omitted.

> makes customers whole *As long as whole is less than $250k.

> As long as whole is less than $250k. Usually, no As an insurer, sure, $250K per account owner per ownership class. (Notably, single and joint accounts are separate ownership categories, so with proper distribution of balances, a married couple with single and joint accounts at one institution, is covered up to $1,000,000 in total. $250k each in the individual category, and $250k each in the joint category. But it a…

For a single individual are savings and checking accounts considered separate accounts?

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#87

Post by chaostheory »

Animats wrote: post #23

Another one? Tether is looking stressed. In the last three months, a lot of Tether has been cashed out. Look at the chart for Market Cap -> Last 3 months.[1] From US$82 billion to US$66 billion. Today, US$200 million was cashed out. Every few days, their market cap drops suddenly. At this rate, in a few months we'll find out how much backing Tether really has, because it is being paid out. Stablecoins have two stable…

Tether is an inadvertent pump and dump scheme similar to Mt Gox that is surprisingly still working.

https://www.theverge.com/22620464/tether-backing-cryptocurre...

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#88

Post by unclebucknasty »

NovemberWhiskey wrote: post #60
ansible wrote: post #4

I sometimes wonder if I'm the only one who just wants a bank to be a bank. I've been with the same relatively small regional bank for 30 years. I have a checking account, savings account and that's it. They've been stable this entire time, and I've never worried my money was going to disappear. As another sign of being an old man, I'm old enough to remember the phrase "as safe as money in the bank". You see, when I w…

I invite you to look at the list of failed banks provided by the FDIC: https://www.fdic.gov/resources/resolutions/bank-failures/fai... Notice that the vast majority of these are smaller, local or regional banks.

Many larger banks are deemed "too big to fail" so they won't land on that list by definition.

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#89

Post by kranke155 »

marcell wrote: post #28
Animats wrote: post #23

Another one? Tether is looking stressed. In the last three months, a lot of Tether has been cashed out. Look at the chart for Market Cap -> Last 3 months.[1] From US$82 billion to US$66 billion. Today, US$200 million was cashed out. Every few days, their market cap drops suddenly. At this rate, in a few months we'll find out how much backing Tether really has, because it is being paid out. Stablecoins have two stable…

Tether's market cap dropping without a price drop is indication that they are liquid and able to handle (to date) almost $20 billion in withdrawal over a 1 month period. That is impressive and a sign of their robustness. They are passing a stress test so far. Their blog counters much of the FUD out there: https://tether.to/en/news/

“FUD” is what all the coiners say it all is until the blog post happens and it’s all over. It was the same with LUNA.

Any intelligent and comprehensive assessment of the information on tether will tell you that it’s likely to be outright fraud.

Re: Voyager suspends trading, deposits, withdrawals, and loyalty rewards

#90

Post by InefficientRed »

ValentineC wrote: post #13
armchairhacker wrote: post #12

I saw this on their site: > FDIC INSURED ON USD $250,000 > You USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the cash you hold with Voyager is protected. So does that mean anyone with less than $250k is guaranteed their money? Is there any legal backing?

I think the keyword here is "cash". Other forms of assets, namely crypto, aren't protected by FDIC insurance.

I have a hard time imagining a jury coming to the conclusion that this phrasing (still on their site) isn't intentionally misleading.
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