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Possibly they were stupid enough to get high on their own supply, and kept operating capital in cryptos instead of USD. I would be terrified too, if my busines
by nikanj 4y ago
Possibly they were stupid enough to get high on their own supply, and kept operating capital in cryptos instead of USD.
I would be terrified too, if my business lost over 50% of it’s cash reserves. Or rather they still have the BTC, but it’s worth one third of peak
- Animats 4y agoPossibly they were stupid enough to get high on their own supply, and kept operating capital in cryptos instead of USD. This is a classic mistake of banks. When allowed to do so, they think they can improve their returns by running trading desks. That's why we in the US used to have Glass-Stegall, which kept banks and brokerages separate. Because, before and after Glass-Stegall, banks got into trouble that way. Nobody runs a pure crypto exchange that doesn't trade for their own account. Crypto exchanges are depository institutions, asset custodians, brokers, lenders, market makers, and exchanges. All those customer assets, just waiting to be exploited.