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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#621

Post by stickfigure »

dragontamer wrote: post #584
dibt wrote: post #570

Earlier quoted context omitted.

>Coinbase Rewards You are referring to staking. FTX was giving a static yield on deposits. The funding for this came from their marketing budget. Very different from what Coinbase does. >"staking" == crappy loans / bonds business. Staking is not a loan. It is a component of proof of stake networks to maintain security. Coinbase provides stacking services, but all they do is pass the yield onto the customer while taki…

> Staking is not a loan. Yes it is. You give your money over to another organization, and that organization promises a % yield / APY in return. You aren't allowed the money back until later. Its totally a bond. > Some token networks may market a mechanism as "staking" when it's just a way to keep people from selling. That's a different topic. I'm feeling some "no true Scotsman" fallacy here. If those guys call it sta…

>> Staking is not a loan.

>Yes it is.

Sort of? The risk profile is significantly different.

Re: Crypto exchange AAX suspends withdrawals

#622

Post by dibt »

dragontamer wrote: post #584
dibt wrote: post #570

Earlier quoted context omitted.

>Coinbase Rewards You are referring to staking. FTX was giving a static yield on deposits. The funding for this came from their marketing budget. Very different from what Coinbase does. >"staking" == crappy loans / bonds business. Staking is not a loan. It is a component of proof of stake networks to maintain security. Coinbase provides stacking services, but all they do is pass the yield onto the customer while taki…

> Staking is not a loan. Yes it is. You give your money over to another organization, and that organization promises a % yield / APY in return. You aren't allowed the money back until later. Its totally a bond. > Some token networks may market a mechanism as "staking" when it's just a way to keep people from selling. That's a different topic. I'm feeling some "no true Scotsman" fallacy here. If those guys call it sta…

> You give your money over to another organization, and that organization promises a % yield / APY in return.

Coinbase is not promising a yield. It would be illegal for them to do so. They are advertising the current market rate defined by the token's network. That rate incentivizes stakers. It is defined in code. If too many people are staking on, for example Ethereum, the network would lower the rate automatically. Just as they are doing, you could stake the tokens yourself with your own hardware/connectivity, or use hosted resources (e.g. AWS).

> You aren't allowed the money back until later.

The yield is paid out according to a defined schedule. Unstaking is possible on some hosted platforms (e.g. Coinbase) even if the network doesn't allow it, but there is usually a penalty.

> "no true Scotsman" fallacy

It's nothing to do with it. I haven't made any qualitative judgements on which network is a "true" staking mechanism.

This article describes the confusion caused by some token networks:

https://cobie.substack.com/p/apecoin-and-the-death-of-stakin...

"Somehow, over time, the word ‘staking’ has been repurposed and redefined. Instead of receiving rewards for contributing to chain security with collateral at stake, modern “staking” just seems to mean idk we give you more coins as a reward if you don’t sell your current coins lol."

> If those guys call it staking

I don't know which "guys" you're referring to. Different networks treat it differently. That's all. It's a designed mechanism. The Ethereum devs have no say in how the Solana devs implement staking. Platforms then just provide a hosting service.

I've only provided facts. I don't personal do any staking, or encourage others to do it. Seems you are only interested in arguing, and prefer to not understand reality. Good luck on your crusade!

Re: Crypto exchange AAX suspends withdrawals

#623

Post by bigyikes »

monkmartinez wrote: post #311
gruez wrote: post #267

Earlier quoted context omitted.

>But people do, why? 1. cash is bulky and risky to keep at home 2. inflation eats away at your savings Bitcoin is designed to solve both issues.

Bitcoin is designed to combat inflation? Please show me how it does this. I am very skeptical of this claim.

There is ultimately a fixed supply of Bitcoin, so the money printer can’t go brrrrrt.

Re: Crypto exchange AAX suspends withdrawals

#624

Post by dragontamer »

zoklet-enjoyer wrote: post #612
dragontamer wrote: post #584

Earlier quoted context omitted.

> Staking is not a loan. Yes it is. You give your money over to another organization, and that organization promises a % yield / APY in return. You aren't allowed the money back until later. Its totally a bond. > Some token networks may market a mechanism as "staking" when it's just a way to keep people from selling. That's a different topic. I'm feeling some "no true Scotsman" fallacy here. If those guys call it sta…

Look up how consensus works on proof of stake blockchains. Specifically Tendermint chains, Ethereum, Tezos, Algorand.

Just because its a complicated loan/bond doesn't mean its not a loan/bond.

Lending money to somebody else, with a promise for future returns, is fundamentally a bond. It will act like a bond, subject to the economic principles of a bond / loans / etc. etc.

Re: Crypto exchange AAX suspends withdrawals

#625

Post by hn_throwaway_99 »

damon_c wrote: post #585
jankyxenon wrote: post #567

Earlier quoted context omitted.

The use case is "stuff we can't imagine"?

Imagine someone told you in 1989 when all the internet did was email and ftp, that the internet was going to do a lot of other things but they didn't really know what yet.

There was still plenty that could be imagined in 1989 that the Internet could be capable of - there was none of this "it is just too unimaginable to even consider" nonsense.

E.g. there were plenty of dialup BBS services and things like Prodigy with GUI, chat, etc. in the 80s. It wasn't that much of a great leap to see how moving those types of things from proprietary networks to the Internet would occur.

Re: Crypto exchange AAX suspends withdrawals

#626

Post by jonas21 »

jandrese wrote: post #362
tinco wrote: post #108

Earlier quoted context omitted.

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…

MtGox was pretty much stripped bare long before it was finally closed down. In fact it was effectively insolvent before it was even bought out by the last owner and running in pure Ponzi mode while the guy tried to make creative "investments" to get the exchange solvent again. Even with the incredible bull market on Bitcoin he couldn't make it work. So nobody should expect to get much of anything out of the remains o…

Despite these issues, and despite and the hack, creditors are still set to make at least a 4x return (in USD) based on appreciation of the bitcoin that wasn't stolen.

[1] https://www.bloomberg.com/news/articles/2022-07-07/mt-gox-cr...

Re: Crypto exchange AAX suspends withdrawals

#627

Post by ethanbond »

warinukraine wrote: post #500
ethanbond wrote: post #425

Earlier quoted context omitted.

Namely no risk of you losing your assets due to technical glitch, fraud, or overextension. Of course this is not a substantial advantage, especially in the US, given the various non-technical (i.e. legal/cultural) guarantees against these failure modes. It doesn't overcome the disadvantages of e.g. having to physically protect your own assets - thus why people tend to use financial institutions.

Exactly, this isn't an advantage. If there's a technical glitch, there's insurance for that. What else?

You may be missing the point of my original post. It is that there are not substantial advantages to decentralization.

Re: Crypto exchange AAX suspends withdrawals

#628

Post by thatguy0900 »

smcl wrote: post #478
pjc50 wrote: post #184

Earlier quoted context omitted.

Well, yes, it was a startup by a bunch of twentysomethings with no real banking experience. There was no partitioning. > the size of the fines that get imposed on people who fuck with client money. This is crypto, law doesn't apply here. Well, that's the marketing pitch at least. So far a lot of exchanges and such like have gone bankrupt or been blatently stolen by their operators and nowhere near enough people have…

I should say that what surprised me wasn't that a bunch of kids started up a company and during that process skirted, if not regulations, at least common sense. But that once serious money got involved and they grew into the millions and then billions of assets under management, nobody was around who could tell them that this was reckless and dangerous

All of the modern startups have skirting laws as a selling point to investors, they want them to be like that. Look at the Greyballing Uber was doing when it was a multinational billion dollar corperation. They actively don't want to play it the right way, they're going for the money.

Re: Crypto exchange AAX suspends withdrawals

#629

Post by [deleted] »

capableweb wrote: post #573
overgard wrote: post #547

Can someone actually explain what the intrinsic use of coins is supposed to be (aside from speculating). Their value is so volatile they suck as actual currency, not to mention if you were the guy that spent 10,000 bitcoins on a pizza back in the day you'd feel pretty stupid about your 300 million dollar pizza. They're not even particularly good for illegal purchases -- you have to know what you're doing to keep your…

I don't use a ton of cryptocurrency, but I have a few uses for it. My primary use case right now is using Filecoin to pay for off-site backups of various kinds, encrypted with (supposedly) quantum-proof cryptography that I encrypt my data with before finally replicating it to numerous instances across the world. This is together with also writing my backups to CDs, using online services like rsync.net and one big USB…

[deleted]

Re: Crypto exchange AAX suspends withdrawals

#630

Post by aeyes »

nlitened wrote: post #581
overgard wrote: post #547

Can someone actually explain what the intrinsic use of coins is supposed to be (aside from speculating). Their value is so volatile they suck as actual currency, not to mention if you were the guy that spent 10,000 bitcoins on a pizza back in the day you'd feel pretty stupid about your 300 million dollar pizza. They're not even particularly good for illegal purchases -- you have to know what you're doing to keep your…

I can explain seriously and answer follow-up questions. I will simplify and just highlight the most valuable current use case, there might or might not be others now or in the future. The value of ether (ETH) is to be a currency that you need to spend in order to include transactions into Ethereum's distributed ledger. Most useful transactions are transfers of stablecoins like USDT or USDC. USDT and USDC can be excha…

I fail to understand how this use of stable coins is better than licensed currency transfer companies. You still need to exchange your local currency twice on shady unlicensed crypto exchanges.

Or am I missing something here? I regularly transfer thousands of Dollars to different countries, the provider I use usually gets the job done on the same day.

There are also huuuge differences in crypto exchange rates depending on country. Crypto exchanges work with unfavorable FX rates when selling USDT unless you already have USD. Binance in my country is currently showing a 4% difference compared to exchange rates on XE.com. Even my bank gives me a better FX rate than that.

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