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Crypto exchange AAX suspends withdrawals

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Re: Crypto exchange AAX suspends withdrawals

#361

Post by parkingrift »

codedokode wrote: post #298
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."

Regulated banks and currencies have similar issues, for example: - the government can print more money and devaluate your savings (it's like a form of tax one cannot avoid). But it is difficult to "print" more cryptocurrency. - the government can put limits on amount of money one can withdraw from a bank account. So you legally have the money but cannot use it. - the bank can refuse to deal with you under AML acts wi…

>But it is difficult to "print" more cryptocurrency.

Except it's not. It's trivially easy. Any exchange (or person/entity) can mint a coin, and FTX collapsed in-part because they were backed by their own coin.

Re: Crypto exchange AAX suspends withdrawals

#362

Post by jandrese »

tinco wrote: post #108
constantcrying wrote: post #85

Earlier quoted context omitted.

An exchange shouldn't count deposited crypto as their asset. It is an asset of their customer. I do not think the actual problem here is crypto exchanges being unprofitable. Even if a crypto exchange goes under, it could (and frankly should ) still be able to go under gracefully, e.g. letting all customers withdraw their assets for a month (and E-Mailing private keys as a last resort). The issue here is crypto exchan…

You can say that, but when MtGox went bankrupt, and also lost 4 fifths of its stored crypto, the court just heaped together all assets into one big pile and all creditors into one big pile and let them fight it out. So now there's a bunch of assholes including but not limited to Peter Vessenes, that are suing the bankrupt entity for billions (completely frivolous of course) and all the depositors have waited for 8 ye…

MtGox was pretty much stripped bare long before it was finally closed down. In fact it was effectively insolvent before it was even bought out by the last owner and running in pure Ponzi mode while the guy tried to make creative "investments" to get the exchange solvent again. Even with the incredible bull market on Bitcoin he couldn't make it work.

So nobody should expect to get much of anything out of the remains of MtGox.

https://en.cryptonomist.ch/2022/08/15/mt-gox-how-bitcoin-sto...

Re: Crypto exchange AAX suspends withdrawals

#363

Post by skinnymuch »

zmgsabst wrote: post #112
spywaregorilla wrote: post #72

Earlier quoted context omitted.

SBF spent about 33% Republican / 66% Democrat EDIT: Not accurate ^ Yet 18 of the 25 top donors were Republican leaning. Billionaires comprise 20% of Republican funding vs. 14% for Dems. Most republican megadonors were entirely republican. The big ones are from hedge funds. So yeah, SBF donated to the dems. We need more regulation to get money out of politics. But let's not kid ourselves into thinking the republican p…

SBF spent 99.9% Dems and 0.1% Repub, according to your first link. You’re telling untrue facts according to your own sources — to minimize that the second largest Dem donor was a criminal stealing customer funds. Your comparison to Repubs is unfounded as none of their donors engaged in organized crime like SBF. Why are you spreading election misinformation?

Those other billionaires donating a ton may be mostly legally doing their huge business. That doesn’t make it moral or ethical or completely legal. If the entire system is corrupt, pointing all fingers at the corrupt Dem party when the Repub part is just as corrupt if not more so is weird, uniformed, and biased. Are you spreading election misinformation?

Re: Crypto exchange AAX suspends withdrawals

#364

Post by jjulius »

xur17 wrote: post #318
gjulianm wrote: post #206

Earlier quoted context omitted.

Precisely the failure of crypto is thinking that people will follow "fundamental crypto values" and underestimating the power of convenience and ignorance. "Traditional financial institutions" are inevitable in crypto.

But at least in crypto I have the OPTION of storing it myself. Also, if I do decide to use a custodial provider, I can choose to use a provider that publishes proof of reserves [0], giving me more confidence in the provider. [0] https://www.kraken.com/proof-of-reserves

>But at least in crypto I have the OPTION of storing it myself.

... what do you call putting cash in your wallet?

Re: Crypto exchange AAX suspends withdrawals

#365

Post by codedokode »

parkingrift wrote: post #361
codedokode wrote: post #298

Earlier quoted context omitted.

Regulated banks and currencies have similar issues, for example: - the government can print more money and devaluate your savings (it's like a form of tax one cannot avoid). But it is difficult to "print" more cryptocurrency. - the government can put limits on amount of money one can withdraw from a bank account. So you legally have the money but cannot use it. - the bank can refuse to deal with you under AML acts wi…

>But it is difficult to "print" more cryptocurrency. Except it's not. It's trivially easy. Any exchange (or person/entity) can mint a coin, and FTX collapsed in-part because they were backed by their own coin.

I meant cryptocurrency like Bitcoin which is incredibly difficult to mint.

Re: Crypto exchange AAX suspends withdrawals

#366

Post by greedo »

gruez wrote: post #267
phailhaus wrote: post #233

Earlier quoted context omitted.

> 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 p…

>But people do, why? 1. cash is bulky and risky to keep at home 2. inflation eats away at your savings Bitcoin is designed to solve both issues.

How's that working for you? As a hedge against inflation, Bitcoin seems a remarkable failure.

Re: Crypto exchange AAX suspends withdrawals

#367

Post by GrabbinD33ze69 »

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.

Traditional institutions will always be dominant in some capacity, as many people are attracted to the convenience they offer. Unless something catastrophic occurs, crippling traditional financial systems or are truly compelling/easy to use platform releases, I can't imagine anything not owned by a "Traditional institution", let alone anything close to what Web 3 proponents preach regarding decentralization & where ownership lies.

Re: Crypto exchange AAX suspends withdrawals

#368

Post by Apocryphon »

ryandrake wrote: post #327
tylersmith wrote: post #203

Earlier quoted context omitted.

Many people are managing our own coins, you just don't hear from us because we don't get burned every year.

Somehow, humanity has gotten good at taking systems that were designed to be decentralized and distributed (like crypto, E-mail, personal websites, and so on) and instead, surrender them to a few big companies who become single points of failure. We keep failing to learn from this every time.

It’s almost as if most people are too busy to figure out the complex processes at doing things themselves, and the very concept of civilization is built on exchanging good and services for money whereby tasks are delegated to parties that are better suited to focus on them.

Re: Crypto exchange AAX suspends withdrawals

#369

Post by throwaway1777 »

Closi wrote: post #333
xur17 wrote: post #318

Earlier quoted context omitted.

But at least in crypto I have the OPTION of storing it myself. Also, if I do decide to use a custodial provider, I can choose to use a provider that publishes proof of reserves [0], giving me more confidence in the provider. [0] https://www.kraken.com/proof-of-reserves

> But at least in crypto I have the OPTION of storing it myself. You have the option with Fiat too - you can get paper currency and store it yourself in a secure location. $10,000 can be stored in $100 bills in as little as c0.03 meters^3. Using a bank is much more convenient to store Fiat though if you want to buy/sell things, much like using an exchange to store Crypto is much more convenient if you want to trade c…

Indeed cash and gold have existed forever for people who didn’t trust banks…

Re: Crypto exchange AAX suspends withdrawals

#370

Post by notch656a »

Closi wrote: post #333
xur17 wrote: post #318

Earlier quoted context omitted.

But at least in crypto I have the OPTION of storing it myself. Also, if I do decide to use a custodial provider, I can choose to use a provider that publishes proof of reserves [0], giving me more confidence in the provider. [0] https://www.kraken.com/proof-of-reserves

> But at least in crypto I have the OPTION of storing it myself. You have the option with Fiat too - you can get paper currency and store it yourself in a secure location. $10,000 can be stored in $100 bills in as little as c0.03 meters^3. Using a bank is much more convenient to store Fiat though if you want to buy/sell things, much like using an exchange to store Crypto is much more convenient if you want to trade c…

Storing a 12/13 word string in your head for a cold wallet puts it into territory a lot closer to a bank account, and in the US normally words in your head can't be seized via court order (there are some exceptional circumstances, but they're far more limited than freezing bank accounts).
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