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What happened was Binance squeezed a competitor, by dumping their token. Then announced stuff on Twitter that made people suddenly withdraw $6B out of it. This
by EGreg 4y ago
What happened was Binance squeezed a competitor, by dumping their token. Then announced stuff on Twitter that made people suddenly withdraw $6B out of it.
This is an unregualated market — but even if it was regulated, what would the regular do after the fact to make it right for everyone inside an exchange or crypto that went to zero?
- leganthropane 4y agoRegulated fractional reserve banks are usually insured by the regulators. If the bank goes bust, the government covers the customers' losses up to a predetermined amount (FDIC covers $250k per account in the US). This helps to prevent bank runs, because people know that they'll get their money even if the bank collapses.