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I'm sorry for the ignorance, but why a crypto exchange is expected to keep the money of the customers in case they want to change back their crypto, and it's not like a regular exchange house where you exchange one currency for another currency, and once the transaction was made, they not obligated to exchange back.
It's not expected to exchange back, it is expected to give back cryptocurrency deposited there.
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They should make money in the same way that the New York Stock Exchange does - by taking a small fee from every trade.
Crypto exchanges are more like a bank grafted onto a hedge fund that happens to also do some exchange stuff on the side.
That… no.
(There are some challenges with this idea on what comes to violence and threat of violence, as I am not probably willing to make those legal in any case, but maybe those could be solved somehow.)
I'm sorry for the ignorance, but why a crypto exchange is expected to keep the money of the customers in case they want to change back their crypto, and it's not like a regular exchange house where you exchange one currency for another currency, and once the transaction was made, they not obligated to exchange back.
It's not expected to exchange back, it is expected to give back cryptocurrency deposited there.
Pardon for living under a rock, but why are crypto exchanges affected by the mood in the crypto market? I thought that a crypto exchange functions like a currency market: I put an offer to sell 10,000 EUR for 1 BTC and someone else puts an offer to buy 10,000 EUR for 1 BTC. When orders cross, a transaction happens and the exchange gets a fee, whether in currency or crypto units. What are crypto exchanges fundamentall…
Also, most of these exchanges have their own tokens which they control the supply of and keep as "assets" on their books. In doing so they can use these self printed tokens as collateral for loans. Add to that some nicely leveraged positions in all kinds of shitcoins and you start to understand how we got here.
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You can say that, but when MtGox went bankrupt, and also lost 4 fifths of its stored crypto, the court just heaped together all assets into one big pile and all creditors into one big pile and let them fight it out. So now there's a bunch of assholes including but not limited to Peter Vessenes, that are suing the bankrupt entity for billions (completely frivolous of course) and all the depositors have waited for 8 ye…
And that's largely because of the lack of regulation that so many cryptocurrency fans tout. If it's not legally regulated as a currency, or a security, or anything of the sort, then why would it be considered to belong to you, and not Mt Gox, once you've given it to them? All you have is a digital account that's basically the legal equivalent of an IOU on a napkin. Welcome to your libertarian utopia.
This all seems like less a problem of crypto as such, and more that exchanges are making a virtual fractional reserve currency by leveraging customer deposits for loans/investments. ie it's a 'banking' problem, specifically a 'fractional reserve banking' problem, not a crypto problem. This is exactly why fractional reserve banking is heavily regulated.
This is the correct take, and why American regulators need to address crypto sooner rather than later.
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SBF spent about 33% Republican / 66% Democrat EDIT: Not accurate ^ Yet 18 of the 25 top donors were Republican leaning. Billionaires comprise 20% of Republican funding vs. 14% for Dems. Most republican megadonors were entirely republican. The big ones are from hedge funds. So yeah, SBF donated to the dems. We need more regulation to get money out of politics. But let's not kid ourselves into thinking the republican p…
Good post. > 96% of house seats were won by the party that spent more in their race. I don’t think the causality here is clear. A lot of companies/billionaires/millionaires and even regular people tend to donate money towards the people who are likely to win the race. If you wanna be in the good graces of the person representing a certain district in the House the best way to do that is to make a bet on the likely wi…
https://www.opensecrets.org/outside-spending/by_race/2022?di...
Many have literally $0 by outside spenders (ignoring the parties themselves).
On the other hand you don't see a ton of money going to non-competitive races because it doesn't really matter. The politician doesn't benefit all that much so it's not exactly a great way to earn favors. Or at least, that's what I'd assume. Lobbying is cheaper than people expect but a lot of these totals are so low I can't imagine it really matters to anyone.
The highest spending race was Nevada 3. With ~$15M for Republicans and ~$5M for Democrats. Predicted a likely democrat Win by 538 and ultimately won by democrats 52-48. Contradicting kind of all points here we're making. It's fuzzy of course. Need to get money out regardless.
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I'm not aware of any crypto exchange that does not charge some manner of fees.
There are some 0 fees exchanges, often requires significant volume or occasionally it's for limited periods and/or on a small list of pairs, but I wouldn't be suprised that someone's running fractional reserve with an exchange and offers 0 fees because they make money elsewhere.