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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

#101

Post by automatic6131 »

exabrial wrote: post #97
automatic6131 wrote: post #95

Earlier quoted context omitted.

>I literally _just_ got my captital out this morning. That. was. close. There can be clawbacks for anyone getting their money back within 90 days of bankruptcy filings. I wouldn't spend it all just yet.

Then I'll pull it out as cash and they can fight me for it.

If Genesis is found to be operating as a ponzi scheme (lol, lmao), then the bankruptcy court will send you a bill for the money you've withdrawn. You can try to fight that in court - but you'll lose. If you try to fight for it another way, I wish you the best of luck.

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

#102

Post by [deleted] »

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.

[deleted]

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

#103

Post by giaour »

horsawlarway wrote: post #81
birracerveza wrote: post #73

Earlier quoted context omitted.

IMO it's the future of finance because you own your coins. Nothing else aside from crypto allows me to do so in digital form. You are free to disagree, even if you think it's digital beanie babies or whatever. Luckily in this case you can vote with your wallet, as I did.

Real question - why do you believe that "owning" your own coins matters? Further - why do you believe that ownership is related at all to the fact that you can keep ledger entry with your wallet on it? Ownership !== ledger entries. Ownership is a shared concept enforced by social constructs. It is not a fucking technical matter solved by a ledger. EX: You sign a contract to send me 1 bitcoin in exchange for my car. I…

This is why the car of the future will only start when presented with a key NFT. /s

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

#104

Post by mirzap »

boc wrote: post #89
mirzap wrote: post #85

Earlier quoted context omitted.

Who says they want to spend US $? If bitcoin (or any other) decentralized currency succeeds and gets world-wide adoption you'll not have to convert it into anything else. You'll spend it as money. That's the ultimate goal of bitcoin. With massive adoption price movements will stabilize so price move of 1.5% will look like a huge deal then.

Because economic activity is fundamentally incompatible with a deflationary currency like Bitcoin? If I can passively generate wealth by doing nothing but waiting, so can everyone else. Only suckers would work. This is basic macroeconomics but for some reason crypto believers just choose to live in an alternative reality.

I disagree. Wealth today is preserved thanks to "deflationary" instruments, whose value rises over time - like gold, silver or even stocks. Rich people take a loans of inflationary $$$ against their deflationary assets to generate economic activity. With that they not only preserve their fortune, but generate a lot more thanks to that economic activity they initiated. Bitcoin will allow that to everyone, not just the rich people.

Also, it worked for thousands of years with gold. Whole civilisations have run on gold, for thousands of years.

Every time in history when some innovation comes up people doing the old way were saying "that's not possible. it will never work. you don't understand the basics of X". History surely rimes.

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

#105

Post by wollsmoth »

mirzap wrote: post #85
polygamous_bat wrote: post #36

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?

Who says they want to spend US $? If bitcoin (or any other) decentralized currency succeeds and gets world-wide adoption you'll not have to convert it into anything else. You'll spend it as money. That's the ultimate goal of bitcoin. With massive adoption price movements will stabilize so price move of 1.5% will look like a huge deal then.

That's a big if at this point. But I agree best to hold your coin yourself until you want to convert. Or maybe the future will bring wide btc adoption.

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

#106

Post by dmichulke »

boc wrote: post #89
mirzap wrote: post #85

Earlier quoted context omitted.

Who says they want to spend US $? If bitcoin (or any other) decentralized currency succeeds and gets world-wide adoption you'll not have to convert it into anything else. You'll spend it as money. That's the ultimate goal of bitcoin. With massive adoption price movements will stabilize so price move of 1.5% will look like a huge deal then.

Because economic activity is fundamentally incompatible with a deflationary currency like Bitcoin? If I can passively generate wealth by doing nothing but waiting, so can everyone else. Only suckers would work. This is basic macroeconomics but for some reason crypto believers just choose to live in an alternative reality.

> If I can passively generate wealth by doing nothing but waiting, so can everyone else. Only suckers would work.

Sure, no eating, heating, transport, comms, but you can do that. Also very ecological. Plus you safe like 0-2% per year on prices.

> This is basic macroeconomics

What do they say happens when you have 2% deflation?

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

#107

Post by giaour »

EMM_386 wrote: post #62
coffeebeqn wrote: post #44

Earlier quoted context omitted.

I don’t really get the point. My dollars are already digital. It’s not like my employer sends a stack of 100s to my banks vault every two weeks

But you won't have the option of cash, the Fed getting into digital currency implies an all-digital future. No cash, and everything is traced. Nobody gets to be "paid under the table", no exchanging cash with your dealer for drugs, no buying things you may be ashmed to buy with cash.

I don’t know how you made the leap from “digital currencies will exist” to “non-digital currencies will cease to exist.”

Even if that were to happen, you could still get paid under the table will gold, gemstones, bushels of corn, pallets of durable goods, etc. meatspace won’t simply end when a central bank issues a digital currency.

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

#108

Post by notch656a »

ronsor wrote: post #68
nayuki wrote: post #59

Earlier quoted context omitted.

Banknotes have serial numbers printed on them. It's not inconceivable for ATMs to record serial numbers when withdrawing and banks to record serial numbers when depositing cash.

You always can exchange banknotes for other banknotes of equivalent value, with anyone .

That's exactly what tornadocash was doing, and the government claimed it was money laundering and blacklisted the exchange.

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

#109

Post by lxgr »

marticode wrote: post #38
danuker wrote: post #25

Earlier quoted context omitted.

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.

In developed countries, banks are rarely left to completely fail nowadays, the small ones are usually taken over by the big ones, and the big ones are bailed by governments/regulators.

Rarely isn't never: https://www.fdic.gov/resources/resolutions/bank-failures/fai...

That list seems to include buyouts, though, i.e. cases in which the FDIC didn't actually have to directly disburse funds.

In Europe, there were two bank failures that I know of in the last few years that required tapping into the regional FDIC equivalents. In at least one of them, quite a few depositors actually lost money (due to having savings in excess of the insured maximum).

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

#110

Post by DebtDeflation »

throwup wrote: post #90
DebtDeflation wrote: post #75

Earlier quoted context omitted.

>Do they regularly publish independently-verifiable audits? Which exchange does this? I'm not talking about finding some mom and pop accounting shop to issue a 1 page report stating they checked on a certain date and the reserves were there, where the majority of the 1 page was a disclaimer stating that this wasn't technically an "audit" and should not be relied upon as such.

Kraken does at least. AIUI their auditor is given a snapshot of all account balances at a particular point in time, and builds a merkle tree. You can then reconstruct your expected merkle leaf and verify that your specific account was included in the tree. You can verify on the auditor's website, or you can do it by hand. Kraken's help page even has code snippets in Python/Go/etc to make it easy! More info: https://w…

No, they do not. They only verify BTC and ETH, no other holdings, and they don't audit liabilities at all, meaning that they could be using your BTC as collateral for loans. Also, the audit they did last December was the second in 8 years and AKAIK they haven't done another since. Kraken is in no way "audited".
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