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Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

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Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#21

Post by danuker »

woah wrote: post #8
danaris wrote: post #3

What is this, four organizations suspending withdrawals after FTX's demise? Five? I'm not the most plugged-in to the cryptocurrency community; anyone know what proportion of cryptocurrency business this makes up?

This isn’t cryptocurrency, these are sketchy unlicensed banks with a cryptocurrency theme. People holding coins in their own wallets are entirely unaffected. I hope that crypto exchanges are outlawed soon.

I hope they are regulated, not outlawed.

As in, "you have to be ready for a 90% withdrawal at any time".

This would have solved every problem.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#22

Post by rglullis »

AndrewStephens wrote: post #17
rglullis wrote: post #12

Earlier quoted context omitted.

Plenty of people were underwater with their mortgages in 2008, but home prices came back up not too long after.

The difference is that house prices were for material objects that people actually need, and sales are supported by a huge industry of agents, lawyers, and governments to facilitate the safe transfer of houses. None of that exists in the crypto space. The exchanges control the price and regularly trade against their own customers, and recent events have shown that they are all co-mingled and propping each other up. E…

> None of that exists in the crypto space.

Bullshit. It exists, it's just that the UI/UX is awful and most people in the developed world have no need for it. But they do exist. My work on hub20 [0] is exactly that, to have a system that would let people and communities create their actual self-custodial "crypto banks".

[0]: https://hub20.io

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#23

Post by ncallaway »

danuker wrote: post #18
birracerveza wrote: post #14

Earlier quoted context omitted.

Anyone who still has any significant amount of money in any CEX, Coinbase included, is either not paying attention or irredeemably naive. It's especially tiresome the fact that people keep pointing at these disasters claiming "crypto has failed", when reality is the exact opposite: CEXs are the exact antithesis of the core crypto idea of decentralizing trust. "Not your keys, not your coins" keeps being proven right.

Not your keys, not your coins. Also, be mindful of what the FDIC (or its equivalent in your country) insures per bank account. It might be worth it to use multiple accounts.

Please be aware that the FDIC *does not insure against losses from these exchanges*.

Do not put money into any crypto exchange, relying on the FDIC to protect you in the event the exchange goes bust.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#24

Post by dvt »

Maybe someone can explain this to me (not an expert in traditional finance), but how in the world are lending instruments not categorized as securities? Let's say I lend you 10 bucks (and I earn some interest on the money over time T), you give me a receipt/contract, and then I sell that receipt to someone else before T expires (the price I sell at is some complicated equation based on your chance to default, inflation, interest rates, the time left out of T, and so on). Can I do that? Is that receipt not a security? Seems this would trivially fail the Howey Test, but it's also completely ubiquitous in the crypto sphere (see stETH, CurveFI, Tomb Finance, etc.). So.. I'm confused.

Forget all the super degenerate stuff (shorting, options, yield farming, nth order derivatives, speculating on NFTs, etc.), this whole insanity is happening because people are seemingly allowed to lend willy nilly without any regulatory pushback.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#25

Post by danuker »

ncallaway wrote: post #23
danuker wrote: post #18

Earlier quoted context omitted.

Not your keys, not your coins. Also, be mindful of what the FDIC (or its equivalent in your country) insures per bank account. It might be worth it to use multiple accounts.

Please be aware that the FDIC *does not insure against losses from these exchanges*. Do not put money into any crypto exchange, relying on the FDIC to protect you in the event the exchange goes bust.

You are correct. What I was pointing out is that actual regulated banks are also prone to failures, especially in these trying times. Because they also hold a fractional reserve.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#26

Post by f0e4c2f7 »

Fatnino wrote: post #4
exabrial wrote: post #2

Holy holy hell, I literally _just_ got my captital out this morning. That. was. close.

Indiana Jones hat scene

I immediately had the same thought

https://media.tenor.com/jVpPsiwNI-gAAAAd/indiana-jones-door-...

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#27

Post by polygamous_bat »

danuker wrote: post #20
mudrockbestgirl wrote: post #16

Earlier quoted context omitted.

If they are outlawed, what will be the onramp?

P2P trade. I think it's better than exchanges anyway. At the moment there's a significant premium for limit orders (i.e. posting an ad rather than taking one up). https://bisq.network/ https://localbitcoins.com/

Nothing better than meeting a guy in a trench coat behind a garage in the shady part of the town to exchange your cash for outlawed, non-refundable token. No way that can go badly.

Actually, scratch that. Nerds will lose their crypto wallet AND their physical wallet to the rubber hose cryptanalysis. In fact, this is a great opportunity for enterprising criminal minds.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#28

Post by w1nst0nsm1th »

woah wrote: post #8
danaris wrote: post #3

What is this, four organizations suspending withdrawals after FTX's demise? Five? I'm not the most plugged-in to the cryptocurrency community; anyone know what proportion of cryptocurrency business this makes up?

This isn’t cryptocurrency, these are sketchy unlicensed banks with a cryptocurrency theme. People holding coins in their own wallets are entirely unaffected. I hope that crypto exchanges are outlawed soon.

> I hope that crypto exchanges are outlawed soon.

They will not.

According to the Financial Times, A recent (or future?) EU legislation allow supervised crypto exchanges EU wide with the condition of 50.000 euros minimun capitalisation.

A member of the board of director of ECB commented: - Crypto providers are very hard to regulate - Banks should step in. - Crypto preys on very fragile people, i.e. poors, minorities, financially illiterates, etc...

It sounds like an injonction masquerading as a mere statement.

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#29

Post by throwup »

danuker wrote: post #21
woah wrote: post #8

Earlier quoted context omitted.

This isn’t cryptocurrency, these are sketchy unlicensed banks with a cryptocurrency theme. People holding coins in their own wallets are entirely unaffected. I hope that crypto exchanges are outlawed soon.

I hope they are regulated, not outlawed. As in, "you have to be ready for a 90% withdrawal at any time". This would have solved every problem.

Sorry, 90%? Why not 100%?

Re: Genesis' Crypto-Lending Unit Is Suspending Withdrawals in Wake of FTX Collapse

#30

Post by genghisjahn »

woah wrote: post #8
danaris wrote: post #3

What is this, four organizations suspending withdrawals after FTX's demise? Five? I'm not the most plugged-in to the cryptocurrency community; anyone know what proportion of cryptocurrency business this makes up?

This isn’t cryptocurrency, these are sketchy unlicensed banks with a cryptocurrency theme. People holding coins in their own wallets are entirely unaffected. I hope that crypto exchanges are outlawed soon.

I wouldn't say that. The value of what's in those wallets is greatly affected by these goings on.
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