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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#791

Post by dmitriid »

nobody9999 wrote: post #687
MichaelCollins wrote: post #409

Earlier quoted context omitted.

Abso-fucking-lutely. The best time to not be involved in crypto was always, and the second best time is now. Get out now if you have any sense.

>Abso-fucking-lutely. The best time to not be involved in crypto was always, and the second best time is now. Get out now if you have any sense. But I have drugs to buy and cannabis to smoke and joints to roll before I sleep.[0] More seriously, there are use cases for cryptocurrency (smart contracts are a different think, unaddressed here), they're just mostly illegal. Whether that illegality is appropriate or not is…

> smart contracts are a different think, unaddressed here

Let me address this, then:

- they are not smart

- they are not contracts

- they are programs written in esoteric programming languages running on world's slowest and most inefficient VM

- due to esoteric nature their own authors cannot find trivial bugs in their implementations that are exploited at scale which would make any real platform nonviable

- cannot be updated or reverted because blockchain

- have literally no use outside the virtual imaginary world of crypto

- have zero legal standing, and cannot be enforced

- in every single case would be more efficient and better served by Visual Basic running on a single Raspberry Pi from a sqlite database.

Re: Crypto exchange AAX suspends withdrawals

#792

Post by Cthulhu_ »

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 make tonnes of money from things like loans and mortgages so they can handle some risk by holding onto cash.

And by being a member of national and international banks; if a bank in NL fails, there's the Dutch National Bank that will step in and guarantee people's money (up until a certain amount); above that is the European Central Bank that holds a lot of money to ensure stability, reliability and trust in the fiat banking system.

Don't get me wrong, the traditional financial system is fucky (professional term) and they do a lot of weird shit with people's money ($1 invested 10x over) but there's checks & balances at least.

Re: Crypto exchange AAX suspends withdrawals

#793

Post by imtringued »

roflyear wrote: post #264
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...

back in the day (as in like 30-60 years ago) a popular scam was to create a situation where frontrunning trades was really easy. there are a million examples of similar things. i don't think regulation is a good thing when a single person is trading with a single person. but, at some point an exchange becomes so big (they deal, seemingly fairly and with honestly, with many people) where people start to trust it. ther…

There are two problems and they are intertwined.

We need to have regulation that allows startups to open mini exchanges and banks with easy compliance and unconditional licensing but with heavy restrictions on per customer funds and total funds they are allowed to manage.

The problem is that if you want to open an exchange in say Germany that is practically impossible. You can't get equity or loans for a bank if you don't have a bank license. You need a million or more starting capital to start your own bank. It is a chicken and egg problem.

That leaves a huge hole that unregulated exchanges want to fill and they have a massive competitive edge because they aren't held back by these regulations that are meant for megacorporations.

Re: Crypto exchange AAX suspends withdrawals

#794

Post by zeroclip »

Nursie wrote: post #780
zeroclip wrote: post #532

Earlier quoted context omitted.

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.

Uniswap, AAVE, MakerDAO traders will disagree with you.

I am one of these people: I had funds locked into a CEX, was lucky to pull them out some days before turmoil but others not so lucky. During that time my DeFi holdings were fine. I would now rather take on protocol risk of something established and proven like Uniswap, instead of risking with an unregulated CEX.

Re: Crypto exchange AAX suspends withdrawals

#795

Post by zeroclip »

dmitriid wrote: post #791
nobody9999 wrote: post #687

Earlier quoted context omitted.

>Abso-fucking-lutely. The best time to not be involved in crypto was always, and the second best time is now. Get out now if you have any sense. But I have drugs to buy and cannabis to smoke and joints to roll before I sleep.[0] More seriously, there are use cases for cryptocurrency (smart contracts are a different think, unaddressed here), they're just mostly illegal. Whether that illegality is appropriate or not is…

> smart contracts are a different think, unaddressed here Let me address this, then: - they are not smart - they are not contracts - they are programs written in esoteric programming languages running on world's slowest and most inefficient VM - due to esoteric nature their own authors cannot find trivial bugs in their implementations that are exploited at scale which would make any real platform nonviable - cannot b…

Do you really feel that Uniswap is better run with sqlite on a Raspberry Pi? If so, you are advocating for putting your money into a CEX, because somebody has to own and control that database and physical device.

Re: Crypto exchange AAX suspends withdrawals

#796

Post by raspberry1337 »

this_user wrote: post #314
raspberry1337 wrote: post #244

Earlier quoted context omitted.

> there is no reason why crypto has any value. Given that bitcoin transaction times are nowhere near VISA or cash times, You interchanged crypto with bitcoin, but bitcoin is not all crypto. The value of crypto comes from them being decentralized and independent of a financial bank. This has the negative side effect of it being very valuable to illegal and fradulent activity, too.

> The value of crypto comes from them being decentralized and independent of a financial bank. The value of that is exactly zero when you live in a stable and developed country, and you are not engaged in criminal activity.

Which many people do not, and here we are.

Re: Crypto exchange AAX suspends withdrawals

#797

Post by dmitriid »

zeroclip wrote: post #795
dmitriid wrote: post #791

Earlier quoted context omitted.

> smart contracts are a different think, unaddressed here Let me address this, then: - they are not smart - they are not contracts - they are programs written in esoteric programming languages running on world's slowest and most inefficient VM - due to esoteric nature their own authors cannot find trivial bugs in their implementations that are exploited at scale which would make any real platform nonviable - cannot b…

Do you really feel that Uniswap is better run with sqlite on a Raspberry Pi? If so, you are advocating for putting your money into a CEX, because somebody has to own and control that database and physical device.

> Do you really feel that Uniswap is better run with sqlite on a Raspberry Pi?

Literally everything I wrote applies to Uniswap.

> because somebody has to own and control that database and physical device.

You've missed the point completely.

Re: Crypto exchange AAX suspends withdrawals

#798

Post by zeroclip »

dmitriid wrote: post #797
zeroclip wrote: post #795

Earlier quoted context omitted.

Do you really feel that Uniswap is better run with sqlite on a Raspberry Pi? If so, you are advocating for putting your money into a CEX, because somebody has to own and control that database and physical device.

> Do you really feel that Uniswap is better run with sqlite on a Raspberry Pi? Literally everything I wrote applies to Uniswap. > because somebody has to own and control that database and physical device. You've missed the point completely.

Your point is that centralized financial services on sqlite is good, decentralized protocols on a blockchain is bad? If that is your point, it's a funny one to make in a thread about a CEX collapsing.

Re: Crypto exchange AAX suspends withdrawals

#799

Post by strogonoff »

sneak wrote: post #767
strogonoff wrote: post #665

Earlier quoted context omitted.

Cryptocurrencies are nothing like cash for one important reason: they are not subject to physical constraints. You cannot easily scam millions of people around the world out of their hard-earned cash in a couple of days. You cannot easily move millions of dollars in cash without conspicuously hauling objects around and/or engaging many people to help with that. You can reverse a cash transaction immediately by grabbi…

I believe that every single sentence in your second paragraph is factually incorrect. I know of all of the things you say aren’t possible with cash are, for a fact, possible and common.

You live in a different world, I guess. In this universe you need duffel bags to move a moderate amount of cash, vans or trucks a large amount, because physics. Ah, and those duffel bags and vans 1) are conspicuous and obvious on CCTVs, 2) require people to handle, and 3) can’t teleport across oceans.

(This is just one sentence you claimed incorrect; I don’t see the the point on going through the rest because maybe I’m missing something but they seem similarly obvious to me personally.)

Re: Crypto exchange AAX suspends withdrawals

#800

Post by dmitriid »

zeroclip wrote: post #798
dmitriid wrote: post #797

Earlier quoted context omitted.

> Do you really feel that Uniswap is better run with sqlite on a Raspberry Pi? Literally everything I wrote applies to Uniswap. > because somebody has to own and control that database and physical device. You've missed the point completely.

Your point is that centralized financial services on sqlite is good, decentralized protocols on a blockchain is bad? If that is your point, it's a funny one to make in a thread about a CEX collapsing.

> Your point is that centralized financial services on sqlite is good, decentralized protocols on a blockchain is bad?

Where exactly in this comment did I say that: https://news.ycombinator.com/item?id=33606218?

> If that is your point, it's a funny one to make in a thread about a CEX collapsing.

What's funny is inventing arguments for other people and valiantly fighting against them.

"Smart contracts" were mentioned as "other uses of crypto currency, as yet unaddressed". I addressed them. I couldn't even care less how you made the illogical leap from that to whatever you accuse me of.

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