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For those wondering why people would store coins on centralised exchanges, the answer is simply because you are heavily incentivised to do so. When Ethereum was
by xs83 4y ago
For those wondering why people would store coins on centralised exchanges, the answer is simply because you are heavily incentivised to do so.
When Ethereum was congested and simple transfers were costing upwards of $200 - FTX offered a number of free ERC20 withdrawals if you staked a certain amount of FTT.
in addition to that - the more FTT you staked the more preferential treatment you got in access to IDO's and referral fees, when you couple this with a platform that felt "safe" and "trustworthy" - this was a recipe for disaster.
I've been in Crypto a long time and previous rugs always felt a bit sketchy, like it was an unfinished product, you put up with it but your risk tolerance was lower as those platforms felt like they might disappear at any one point.
FTX felt different - and this is why there are people with 8 figures+ stuck on there right now.
- sbarre 4y agoIt feels like every time there's a crypto exchange exit-scam/fail/crash/run/fraud, someone says "but this one felt safe/different/better than the others". I (genuinely) wonder how many more times that will happen?
- NoPicklez 4y agoWell people only know what they know. Nothing is completely safe. You will likely continue to find people who say that until the day you die.
- xs83 4y agoName one other one? There hasnt been one, there have been custodial lending platforms that have had all the credentials - this isn't the same. Imagine the second largest bank in your country just up and dissolving with everyones money - that is exactly how this feels to those of us who have been in this space a while.
- netheril96 4y agoAnother reason is that many people in crypto trade often. They don’t intend to hold any coins for long. Withdrawing and depositing frequently will cost a ton in that case.