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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

#41

Post by zeven7 »

dvt wrote: post #24

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, inflati…

I don't know the real answer to your question, but a lot of products "aren't available in the US", which means the marketing site blocks by IP to try to avoid getting in trouble

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

#42

Post by tartoran »

CyberDildonics wrote: post #32
gergov wrote: post #10

Earlier quoted context omitted.

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

Everyone is talking about losing their balance and you are conflating it with price fluctuations.

Let’s not shy away, those balances are a speculation on the future price of crypto. If the prices don’t go up they’re affected, simple as that.

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

#43

Post by UltraViolence »

In other news: the several international banks are moving forward with their "Digital Dollar" experiment.

It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

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

#44

Post by coffeebeqn »

UltraViolence wrote: post #43

In other news: the several international banks are moving forward with their "Digital Dollar" experiment. It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

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

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

#45

Post by 1970-01-01 »

birracerveza wrote: post #14
exabrial wrote: post #2

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

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.

Crypto ads all said this was the future. Sizzle sells, skeptics survive.

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

#46

Post by birracerveza »

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.

It's not a problem, until it is. Mh, sounds familiar.

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

#47

Post by VHRanger »

dvt wrote: post #24

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, inflati…

The answer is that they almost certainly are securities, but the precedent isn't established.

White collar prosecution is expensive and complex, and prosecutors care about their careers. They want certain wins, preferably fast.

So the SEC are waiting for slam dunk cases to establish precedent.

In practice this means they wait for something large and obvious to implode, and prosecute months/years after the fact.

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

#48

Post by alexb_ »

coffeebeqn wrote: post #44
UltraViolence wrote: post #43

In other news: the several international banks are moving forward with their "Digital Dollar" experiment. It's news like this that keeps me holding on to my Bitcoin. Once digital cryptocurrencies become in vogue again BTC will once again become valuable.

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 can still withdraw that for stacks of 100s if you so please. And these dollars cannot be tracked by large corporations hungry for any bit of data about you.

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

#49

Post by throwup »

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?

1. Some exchanges are irresponsible and fail. Some exchanges are not irresponsible and do not fail. If you do a minimum of due diligence, it's not hard to tell the responsible from the irresponsible. Do they regularly publish independently-verifiable audits? Or are they spending boatloads money on stadium sponsorships?

2. If you're using an exchange for exchanging currencies (as opposed to speculation) you can send your money there, exchange it, and immediately send it back out. You're only exposed for at most an hour or two. If you've chosen a well-reputed exchange that's been around for 10+ years, chances are effectively nil that it suddenly disappears during that small window with no warning signs beforehand.

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

#50

Post by shkkmo »

danuker wrote: post #25
ncallaway wrote: post #23

Earlier quoted context omitted.

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.

We haven't seen any indication that a wave of bank failures is coming. We haven't seen any failed banks in a couple of years.

Now, that could change and we could see a recurrence of the wave of bank failures that started in 2008 and slowly tapered off, but your argument for that can't just be a hand wave at "trying times" and "fractional reserve" because the numbers currently show the opposite: https://www.fdic.gov/bank/historical/bank/

Still smart to keep total accounts per type per bank under the insurance limit (currently $250,0000), and to directly verify that your accounts are actually insured using the FDIC's tool: https://closedbanks.fdic.gov/aii/

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