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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#211

Post by to11mtm »

kkielhofner wrote: post #37
nadieyninguno1 wrote: post #4

Earlier quoted context omitted.

I've had a store credit card (via Comenity Bank) having "system maintenance issues" since early June, refusing to pay out the money owed per their rewards scheme. No one at either the store's corporate office can tell you anything nor will the backing bank say anything other than "We value you as a customer and appreciate your patience." It's a common industry tactic, sadly, to scapegoat IT operations for internal fa…

Somewhat unrelated but unless it's absolutely dire circumstances do not EVER get a "store credit card". They have obscenely low limits which adversely affects your credit score as relatively small purchases can end up using a substantial portion of the available credit. Balance vs total credit (available credit) is a very important factor in calculating scores and credit worthiness. The interest rates are extremely h…

> They have obscenely low limits which adversely affects your credit score as relatively small purchases can end up using a substantial portion of the available credit. Balance vs total credit (available credit) is a very important factor in calculating scores and credit worthiness.

I mean yes but if you have other credit cards that aren't maxed out, it should not make a huge overall difference compared to if you put that same amount on another card; while one card having a high balance load has an impact, the overall load on your credit is the bigger store factor.

> The interest rates are extremely high even when compared to most other major CCs from the usual suspects. All of these merchants don't push these things because they're doing you a favor - they likely have agreements in place with the issuing bank to get kickbacks on interest.

They get kickbacks, and the high interest rates help cover some of the cost of store CC customers that use promotional financing but consistently pay the item off before interest gets added.

Re: Crypto exchange AAX suspends withdrawals

#212

Post by rtkwe »

netheril96 wrote: post #191
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

Centralized exchanges are the polar opposite of what Satoshi was advocating for.

Exchanges are the primary reason crypto value is as high as it is though. Without the easy way to get money in (and usually out) of $COINs there's less speculation, less money flowing in, less market to drive prices. If we were back in the days of Local Bitcoin being the best way to buy coins there'd be even less of the meager adoption we've seen in business too.

Re: Crypto exchange AAX suspends withdrawals

#213

Post by 300bps »

disruptalot wrote: post #187
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that.

I find this sentiment of "not your coins, not your crypto" unsettling. The average person doesn't even back up the pictures on their computer or phone and they are one storage device failure away from losing all of their wedding pictures, baby pictures, etc.

The big push now is for people to use hardware wallets. I guarantee that 50% of people over the span of a decade will lose access to 100% of their funds.

2023 will be about everyone learning how much of a joke cryptocurrency is.

Re: Crypto exchange AAX suspends withdrawals

#214

Post by racl101 »

gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

Maybe the name 'Satoshi Nakamoto' is an anagram that I'm too stupid to decipher.

Re: Crypto exchange AAX suspends withdrawals

#215

Post by alangibson »

anon291 wrote: post #200
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

Unfortunately, absent the crypto exchanges, which let you easily convert crypto to fiat, there is no reason why crypto has any value. Given that bitcoin transaction times are nowhere near VISA or cash times, bitcoin is fairly useless to purchase things in person and few online vendors take bitcoin alone (most use an exchange to convert bitcoin to cash instantly). So without exchanges, there is literally no purpose or…

I can't believe it's been 5 minutes and no one has said 'lightning network' yet.

Re: Crypto exchange AAX suspends withdrawals

#216

Post by smileybarry »

speakfreely wrote: post #32

> Due to the failure of our third-party partner, some users' balance data were found abnormally recorded in our system. Hence, limiting our services to prevent further risks, the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings. "Abnormally recorded" ... "prevent further risks" ... "manually proofread" ... "maximum accuracy". Wow.

Everything ends up being an Excel sheet, I guess.

Re: Crypto exchange AAX suspends withdrawals

#217

Post by TacticalCoder »

anticristi wrote: post #109

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…

> What am I missing?

That most of them, not all of them but, by very far, most of them are downright scams, planned as scams from day one, just like in the FTX case. Evidence is mounting quickly that both Alameda Research and FTX were mounted as scams (despite the narrative that's going to be sold that it was bad luck / bad trades that sent them in a death spiral).

There are people who warned about the very scam Alameda and FTX were putting the very day FTX launched.

Re: Crypto exchange AAX suspends withdrawals

#218

Post by pokeymcsnatch »

anon291 wrote: post #205
speakfreely wrote: post #32

> Due to the failure of our third-party partner, some users' balance data were found abnormally recorded in our system. Hence, limiting our services to prevent further risks, the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings. "Abnormally recorded" ... "prevent further risks" ... "manually proofread" ... "maximum accuracy". Wow.

This is a major indictment of blockchain technology. Supposedly, all these accounts are recorded on an immutable, verifiable chain. Manual proofreading means something is wrong with your blockchain code, or you're lying to users about where the recording happens.

Transactions on the exchange don't take place on the blockchain. The data they're "proofreading" is probably in a traditional db.

Re: Crypto exchange AAX suspends withdrawals

#219

Post by bmmayer1 »

adammarples wrote: post #148

"Industry" People gave us money and now they want it back but we spent it

This.

If an exchange cannot 1:1 fund withdrawals it is not an exchange, it's a ponzi scheme. Full stop.

All real exchanges should be releasing evidence of 1:1 backed customer deposits ASAP like Coinbase has. And if they don't, it should be considered a canary of systemic risk.

Re: Crypto exchange AAX suspends withdrawals

#220

Post by ethanbond »

disruptalot wrote: post #187
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right? This prompts the question: why are they so centralized? It turns out the advantages of centralization are more significant than the advantages of decentralization, and this is true even in a market with religious orientation toward decentralization.

All you've gotta do to get people to keep their coins "correctly" is eliminate the benefits of agglomeration. Good luck!

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