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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.
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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.
Well, once all these go down the prices of currencies will also come down, which affects even those who had their coins in cold wallets - unless they plan to hold without making a profit until the heat death of the universe
Holy holy hell, I literally _just_ got my captital out this morning. That. was. close.
This Bloomberg article has more:
> Crypto brokerage Genesis is suspending redemptions and new loan originations at its lending business after facing what it described as “abnormal withdrawal requests” in the aftermath of the collapse of FTX.
https://www.bloomberg.com/news/articles/2022-11-16/crypto-br...
There's also this interesting bit:
> Last week, Genesis said it would get a $140 million equity infusion from its parent company, Barry Silbert’s Digital Currency Group, after disclosing that its derivatives business had $175 million in funds locked in an FTX trading account. The lending business had previously been affected by its exposure to bankrupt crypto hedge fund Three Arrows Capital, to which it had made a $2.4 billion loan.
FWIW, Digital Currency Group is the company behind the popular GBTC closed-end fund, which is available to US investor brokerage accounts. This fund has had problems of its own, trading at a relatively large (and growing) discount for some time:
https://www.bloomberg.com/news/articles/2022-05-13/grayscale...
Oddly enough, the Genesis Trading yield farming page makes it look like nothing unusual is going on. No announcement, no notice, no nothing. Situation normal.
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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…
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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.
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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
The two problems with this setup are:
* The exchanges are dishonest and unregulated.
* The exchanges are exploding like a chain of firecrackers.
So crypto is going from a state of having most transactions go through dishonest exchanges to being in a state where people own crypto but trading will become almost impossible.
Is the price going to go up? Will it go down? It doesn't matter, since without exchanges you can't actually use it for anything.
To the crypto-inclined people commenting on every thread about how failing centralized exchanges don't effect you and are actually good for Bitcoin, how are you planning to convert your hard earned crypto into US dollars that you can spend at a grocery store? If your answer is "P2P exchanges," how do you plan to secure your cold wallet against the infamous rubber hose cryptanalysis?