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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#231

Post by warinukraine »

ethanbond wrote: post #220
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right? This prompts the question: why are they so centralized? It turns out the advantages of centralization are more significant than the advantages of decentralization, and this is true even in a market with religious orientation toward decentralization . All you've gotta do to…

> But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right?

What are the advantages of decentralization in this context? Be specific.

Re: Crypto exchange AAX suspends withdrawals

#232

Post by RexM »

anon291 wrote: post #205
speakfreely wrote: post #32

> Due to the failure of our third-party partner, some users' balance data were found abnormally recorded in our system. Hence, limiting our services to prevent further risks, the technical team has had to manually proofread and restore the system to ensure maximum accuracy of all users’ holdings. "Abnormally recorded" ... "prevent further risks" ... "manually proofread" ... "maximum accuracy". Wow.

This is a major indictment of blockchain technology. Supposedly, all these accounts are recorded on an immutable, verifiable chain. Manual proofreading means something is wrong with your blockchain code, or you're lying to users about where the recording happens.

Don't most of the exchanges pool the coins and keep their own ledgers for who owns what? Once the coins go into the exchange it's kind of just a black box and you lose the blockchain audit trail, right?

Re: Crypto exchange AAX suspends withdrawals

#233

Post by phailhaus »

disruptalot wrote: post #187
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

> Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

You can literally say this about "regular" currency. Just don't put your money in banks! But people do, why? Once you answer that, you'll realize why people do it for crypto too. You can't complain that it's "against fundamental crypto values" when it doesn't have any mechanism for preventing it. It's convenient, it has benefits, therefore people do it.

Re: Crypto exchange AAX suspends withdrawals

#234

Post by justoreply »

bmmayer1 wrote: post #219
adammarples wrote: post #148

"Industry" People gave us money and now they want it back but we spent it

This. If an exchange cannot 1:1 fund withdrawals it is not an exchange, it's a ponzi scheme. Full stop. All real exchanges should be releasing evidence of 1:1 backed customer deposits ASAP like Coinbase has. And if they don't, it should be considered a canary of systemic risk.

Do you know what are you talking about? Banks don't have all the funds. Are they Ponzi scheme? No.

Re: Crypto exchange AAX suspends withdrawals

#235

Post by 0xAFFFF »

netheril96 wrote: post #191
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

Centralized exchanges are the polar opposite of what Satoshi was advocating for.

Satoshi was advocating for "digital cash", i.e. something you could do mundane transactions with, yet it's utterly unfit for that puropose. It's 2022, nobody gives a damn about what Satoshi was advocating for and especially not people believing in Bitcoin.

Re: Crypto exchange AAX suspends withdrawals

#236

Post by RC_ITR »

disruptalot wrote: post #187
gzer0 wrote: post #119

"At this point I'm convinced Satoshi Nakamoto was actually a public administration professor trying to teach kids why financial institutions have the rules in place that they do. Given enough time, the entire crypto space will have reinvented every regulation they tried to get rid of and understood why they existed in the first place."

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

Yes, but that happening is a failure of crypto.

If decentralized were actually better, then why would people flock to centralization?

Re: Crypto exchange AAX suspends withdrawals

#237

Post by yuvadam »

ethanbond wrote: post #220
disruptalot wrote: post #187

Earlier quoted context omitted.

This was a failure of traditional financial institutions and people who are ok with them, not of crypto. Satoshi wouldn't be encouraging people to put their coins on a trusted third party like that. All fundamental crypto values say this.

But you realize that banks (and individuals) could have all the advantages of decentralization if they just chose to be decentralized too, right? This prompts the question: why are they so centralized? It turns out the advantages of centralization are more significant than the advantages of decentralization, and this is true even in a market with religious orientation toward decentralization . All you've gotta do to…

Banks can't choose to be decentralized when the whole point of their existence is to custody centralized fiat money.

Re: Crypto exchange AAX suspends withdrawals

#238

Post by bilbo0s »

justoreply wrote: post #234
bmmayer1 wrote: post #219

Earlier quoted context omitted.

This. If an exchange cannot 1:1 fund withdrawals it is not an exchange, it's a ponzi scheme. Full stop. All real exchanges should be releasing evidence of 1:1 backed customer deposits ASAP like Coinbase has. And if they don't, it should be considered a canary of systemic risk.

Do you know what are you talking about? Banks don't have all the funds. Are they Ponzi scheme? No.

Banks are not exchanges.

Those two entities have two different functions in any financial system.

You should not be using your exchange like a bank. Even more importantly, your exchange should not be using your assets as a bank would.

Re: Crypto exchange AAX suspends withdrawals

#239

Post by goodoldneon »

brnt wrote: post #33

So, having been around since the early bitcoin days, core to the salespitch back then was the fact you would have control. You'd have your coins in your wallet, and no need for banks etc. Apparently nobody does this anymore, and gives their wallets to these exchanges (i.e. banks) and balks when the obvious happens in pyramid schemes. People just don't get distributed currency if they promptly undistribute it. Or is i…

You still have people with their own wallet. But the vast majority of people don't want to deal with the complexity of decentralization so they prefer centralization

Re: Crypto exchange AAX suspends withdrawals

#240

Post by singlow »

anamexis wrote: post #179
stefan_ wrote: post #151

Earlier quoted context omitted.

Crypto isn't money. You are not a bank customer depositing cash. I'm not sure why their customers should be creditors at all, it's a bit like asking GMail for your emails back when Google goes bankrupt.

Let's not forget that "crypto" here is short for cryptocurrency.

Well, I call my crypto BabyCoins, so when you confiscate them you are kidnapping right?
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