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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#521

Post by VBprogrammer »

coconut08 wrote: post #503
yewenjie wrote: post #497

How likely is this cascade to reach Binance?

anyone who claims to know is lying to you. historically speaking, a good heuristic would be: not your keys not your coins, no matter what the exchange is. if you control your own keys then you don't need to wonder about whether binance is solvent or not.

Honestly, I've never really understood crypto so maybe I'm mistaken, however if pretty much all of the major exchanges disappear off the face of the earth, can there be any other outcome than the value of crypto going, as near as makes no difference, to zero? You may still be able to transfer ownership of your coins but for what purpose?

Re: Crypto exchange AAX suspends withdrawals

#522

Post by aeternum »

dhruval wrote: post #515

Not super knowledgeable on this but Decentralized exchanges exist why are they not more widely used by the crypto community?

Usability is still not great. Slippage risk is hard to communicate and txn costs were high since they require on-chain txns.

Re: Crypto exchange AAX suspends withdrawals

#523

Post by startupsfail »

surfsvammel wrote: post #508
lbriner wrote: post #7

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…

I know nothing about the world of crypto currencies, but I do know finance. The exchange does not hold the trades instruments/currencies/securities as assets. The business of a normal exchange is normally risk free (just matching buyers to sellers). Some exchanges step in as middle man in the trades, a process that I believe is called novation of the trade. The original trade between the buyer and the seller is novat…

Crypto exchanges usually combine a function of an exchange and a clearing house. And tend to create ad-hock financial instruments. Hence the risk.

To me it feels like it is time to rethink at least the proof-of-work coins, particularly the CO2 emissions and energy use. It is crazy that people go cold in Europe while the energy is spent to mine bitcoins. And that the amount of CO2 produced by mining bitcoins is that of a small country. While the benefits of of all these coins seem to be nonexistent.

Re: Crypto exchange AAX suspends withdrawals

#524

Post by cortesoft »

JumpCrisscross wrote: post #177
NovemberWhiskey wrote: post #174

Earlier quoted context omitted.

Crypto exchanges act like brokers and exchanges. They match orders and they also hold client money.

> match orders and they also hold client money Matching orders is what brokers canonically do. Exchanges came about to consolidate their activity. There is nothing resembling a true exchange in the crypto space.

Isn’t the blockchain itself the “true exchange” of the crypto space?

Re: Crypto exchange AAX suspends withdrawals

#525

Post by RobLach »

dhruval wrote: post #515

Not super knowledgeable on this but Decentralized exchanges exist why are they not more widely used by the crypto community?

DEXs don't interface with state backed currencies, which makes them have limited utility for typical users who want to engage in economies they actively live in.

Re: Crypto exchange AAX suspends withdrawals

#526

Post by mcrad »

reallythisguy wrote: post #209
zmgsabst wrote: post #112

Earlier quoted context omitted.

SBF spent 99.9% Dems and 0.1% Repub, according to your first link. You’re telling untrue facts according to your own sources — to minimize that the second largest Dem donor was a criminal stealing customer funds. Your comparison to Repubs is unfounded as none of their donors engaged in organized crime like SBF. Why are you spreading election misinformation?

This is more misinformation than the OP - there's more criminal money flowing into republicans by far, the below is just two examples (edit: two examples) from 10 seconds of searching for an article: https://www.politico.com/news/2021/09/20/gop-operatives-char... https://www.wsj.com/articles/former-gop-donors-charged-in-in... Even if talking just about people who are later found to have acted improperly, look at the…

10 seconds of searching is where your argument falls apart, good luck with that.

Anyway you are justifying this destructive behavior with more destructive behavior? It's no wonder you don't take more time to understand these things.

Re: Crypto exchange AAX suspends withdrawals

#527

Post by mring33621 »

acomms wrote: post #228
djbebs wrote: post #152

Earlier quoted context omitted.

No regulation would have prevented this crime from happening. I want to be clear here, what happened here is already illegal as is, and no regulation would have prevented it from happening in the first place. Hell, the firm was already being audited, and those auditors didn't catch the accounting discrepancies, so it's doubtful that any additional regulation would have found this earlier either...

You aren't wrong, maybe it's my wishful thinking. What do you think the solution is here? Do you think the house of cards stayed propped up because a lot of people were in on the fraud? Were the auditors just incompetent or were they in on it? Auditors are reasonably well known firms.

I know some people in the auditing field and they have told me that they "don't try too hard to find problems, but sometimes they do anyway"

It's a balancing act between appearing to be credible/rigorous and maintaining a long-term customer relationship.

Re: Crypto exchange AAX suspends withdrawals

#528

Post by AkshatJ27 »

dhruval wrote: post #515

Not super knowledgeable on this but Decentralized exchanges exist why are they not more widely used by the crypto community?

Most people use fiat, there is no way to use a credit card to buy crypto on a DEX. Also, transaction fees are usually higher and some coins just cannot be supported unless wrapped, like trading bitcoin on an ethereum DEX requires you to use WBTC or similar tokens, which are usually costly to wrap/unwrap and might even be centralized.

Re: Crypto exchange AAX suspends withdrawals

#529

Post by fundad »

amalcon wrote: post #406
jacknews wrote: post #77

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.

None of these collapses have been due to fractional reserve banking, because fractional reserve banking requires being open about what you're doing. These collapses have been about fraud . There are lots of other kinds of fraud; getting rid of this type would barely make an impact. While there's nothing intrinsic about cryptocurrency that would make it more prone to fraud than anything else, the culture around it see…

I crypto fans call it the "five-finger-fractional-reserve, have fun being poor" if you ask them.
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