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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#771

Post by hn_throwaway_99 »

kranke155 wrote: post #694
hn_throwaway_99 wrote: post #668

Earlier quoted context omitted.

> I see for instance how DAOs and blockchain could help developers receive compensation for commits to open source software, creating a possibility for the commercialisation of open source that competes with even large companies. I know people who looked into this. And I hope it happens. I was appropriately reprimanded by dang yesterday for starting a comment with an attack, so I'll slow down and just point out the f…

I’ve gotten some flak from dang as well ;) happens sometimes I think we are describing fundamentally different economies. GitHub Sponsors is optional. I’m talking about a way to have mandatory payments in open-source, with fully transparent automatic payment mechanisms to all contributors. And before you say well how, MakerDAO is kind of already working like this (I’d have to look into it more but that’s my impressio…

There is a lot going on here, but I'll just say I don't see any benefit in reality:

1. "It’s open source but when you buy it you get an NFT that lets you run the software." You seem to fundamentally misunderstand what open source software is. If you need to buy some sort of NFT to run your software, it's not open source, and this goes against pretty much every definition of open source I've ever seen. You're free to sell your own software now, just don't call it open source if it can't be modified and run independently.

2. "But using the blockchain as a method of developer verification, open source becomes profitable in a way that’s verifiable, decentralised and permission less." This is another pet peeve of mine, when crypto enthusiasts rediscover cryptographic principles that have already been in use for decades and decide by calling it "blockchain" that it is something novel. We have a very nice, cryptographically secure method to verify the commit history of any open source software. It's called git and it's been in use for about 2 decades now.

Again, all I really see is a rube-goldberg machine trying to solve a problem that is fundamentally not about difficulty of existing payment systems.

Re: Crypto exchange AAX suspends withdrawals

#772

Post by inasio »

poulpi wrote: post #428
timemct wrote: post #172

Earlier quoted context omitted.

> There's an entire cottage industry built around people etching their seed phrases on steel plates for people to (I'm not kidding) bury them like they're gold in the 1800s. "I write these words in steel, for anything not set in metal cannot be trusted." - The Well of Ascension, by Brandon Sanderson

Actually, if you want something to stay, you should go for stone rather than metal. Stone have low market value while metal can always be melted to do something else (like weapons). It's one of my main take away of my art history lessons -> most antic art done on metal has been lost, but the stone remains!

That was also what they went with in the 3 body problem

Re: Crypto exchange AAX suspends withdrawals

#773

Post by diogenescynic »

codedokode wrote: post #351
diogenescynic wrote: post #308

Earlier quoted context omitted.

>The most reliable way to keep your savings safe seems to be to store it as gold. This is nonsense. FDIC insurance is adequate for most people and you can open multiple bank accounts without any issues to expand your coverage limit. Stop giving people bad advice. And everything you said about banks is an issue with gold. Most people don't have a vault at home they are storing gold in... they are simply buying a certi…

As I understand, the interest rates for deposits in developed countries are too low to compensate inflation.

Gold is not even keeping track with the S&P500 vs inflation. You're also conflating a savings/checking account with investing. Totally different issues. This is why people really shouldn't listen to random users for financial advice.

Re: Crypto exchange AAX suspends withdrawals

#774

Post by matheusmoreira »

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 are crypto exchanges fundamentally doing differently that they are suddenly losing money?

Fractional reserve banking. Exchanges now offer traditional banking services such as savings accounts and loans.

They are unregulated banks with none of the insurance and government protections to bail them out. They cannot resist the temptation to gamble with the vast amounts of money they are sitting on. Only a matter of time before they lose it all and people can't withdraw their cryptocurrencies because there's no money in the reserves.

Re: Crypto exchange AAX suspends withdrawals

#775

Post by bredren »

Animats wrote: post #766
bredren wrote: post #713

Earlier quoted context omitted.

FWIW, that user experience is most likely Coinbase, or something very much like Coinbase. Not only is the UX good, but customer funds are taken seriously now and have been for a long time.

Coinbase still has custody of customer assets, though. That's what has to be either eliminated or insured to avoid trouble.

To avoid what trouble, specifically?

If it’s risk of customer funds mismanagement, coinbase is just not in the same galaxy as the folks who have blown customer trust.

If it’s securing funds, to prevent hacks, CB offers cold storage. Lumps of crypto can be transferred out of their control as needed to manage risk.

Re: Crypto exchange AAX suspends withdrawals

#776

Post by [deleted] »

krzyk wrote: post #663
johannes1234321 wrote: post #176

Earlier quoted context omitted.

> And that's largely because of the lack of regulation that so many cryptocurrency fans tout. In next sentence they will tell you, that you shouldn't have kept the private keys at the exchange. Use your own wallet and keep your copy of the Blockchain.

Basic common sense, not your keys not your coins.

[deleted]

Re: Crypto exchange AAX suspends withdrawals

#777

Post by vkou »

krzyk wrote: post #663
johannes1234321 wrote: post #176

Earlier quoted context omitted.

> And that's largely because of the lack of regulation that so many cryptocurrency fans tout. In next sentence they will tell you, that you shouldn't have kept the private keys at the exchange. Use your own wallet and keep your copy of the Blockchain.

Basic common sense, not your keys not your coins.

Most societies generally recognize that a person's ownership extends past the objects in his immediate use/possession. You don't give up ownership of your car, just because you parked it on the street unattended, just like I don't become the owner of it if I steal your keys.

Re: Crypto exchange AAX suspends withdrawals

#778

Post by memish »

zach_garwood wrote: post #150
oldgradstudent wrote: post #121

Earlier quoted context omitted.

> The issue here is crypto exchanges severely mismanaging the assets of their customers. "Severely mismanaging" is a euphemism for fraud and theft, right?

When you steal $1000 from someone, it's theft. When you steal $1000 from a million people it's "mismanaging assets".

When you're $1000 in debt, it's your problem. When you're $1M in debt it's the bank's problem.

Re: Crypto exchange AAX suspends withdrawals

#779

Post by memish »

oneoff786 wrote: post #31
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…

In the fiat world banks are regulated and can’t do crazy shit with their reserves.

People have short memories. They don't even remember 2008.

Re: Crypto exchange AAX suspends withdrawals

#780

Post by Nursie »

zeroclip wrote: post #532
Nursie wrote: post #397

Earlier quoted context omitted.

So we’ve gone from “Everyone is learning the value of DeFi” to “I can come up with a single example of a DeFi system that hasn’t been hacked (yet)” Hardly says that DeFi as a category is reliable.

Here's a bigger list for you[1], the top 10 all have $1B+ TVL. [1] https://defillama.com/

Great, you can point to some that haven't been hacked, exploited or just plain collapsed yet.

You said "day traders on FTX are learning first hand the value of DeFi", but DeFi is just as much of a shitshow as the rest and has had just as many collapses.

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