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Forgive my ignorance but it seems that one major problem with crypto-exchanges is that they don't necessarily have any assets other than the crypto that has been deposited there, which means all overheads (which I am assuming for some of these guys is $Ms/year) can only come from trading crypto unless they are charging reasonable money for the privilege of using their exchanges. In the FIAT world, banks make tonnes o…
Domino effect perhaps
The whole point of the tech is that centralized players are simply not needed. Why did an engineer design a system where they're not needed? Because they commit fraud whenever given a chance. Greed and ignorance is what reinstalled them into the stack.
Forgive my ignorance but it seems that one major problem with crypto-exchanges is that they don't necessarily have any assets other than the crypto that has been deposited there, which means all overheads (which I am assuming for some of these guys is $Ms/year) can only come from trading crypto unless they are charging reasonable money for the privilege of using their exchanges. In the FIAT world, banks make tonnes o…
There is nothing wrong with this, and indeed it's a good thing.
Forgive my ignorance but it seems that one major problem with crypto-exchanges is that they don't necessarily have any assets other than the crypto that has been deposited there, which means all overheads (which I am assuming for some of these guys is $Ms/year) can only come from trading crypto unless they are charging reasonable money for the privilege of using their exchanges. In the FIAT world, banks make tonnes o…
People want to increase their exposure to crypto via leverage. For example:
1. Collatorize BTC to get USDT
2. Use the USTDT to buy ETH.
3. Use ETH to collatorize to get USDT
4. Use USDT to buy sh*tcoin
5. wash, rinse, repeat
If everything goes up, you can make a ton of money. If things go down... you lose everything.
Forgive my ignorance but it seems that one major problem with crypto-exchanges is that they don't necessarily have any assets other than the crypto that has been deposited there, which means all overheads (which I am assuming for some of these guys is $Ms/year) can only come from trading crypto unless they are charging reasonable money for the privilege of using their exchanges. In the FIAT world, banks make tonnes o…
If the trading volumes they are claiming are real, these exchanges should be printing money from transaction fees alone.
In the current climate, I'm left wondering who still has their crypto on exchanges. Which maybe thats the problem - people withdrawing funds causing even more bank runs.
I believe in Crypto, but have less than zero faith in "Big Crypto" The whole point of the tech is that centralized players are simply not needed. Why did an engineer design a system where they're not needed? Because they commit fraud whenever given a chance. Greed and ignorance is what reinstalled them into the stack.
With no demands of a bank, why expect them to?
The warning bells should be going off in the entire crypto sector right now. If you have money in crypto, I'd strongly recommend going off-exchange