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All day I've been seeing reserve audit posts from all the crypto companies. To me this also screams "Please don't make a run on us or we're screwed"
by tppiotrowski 4y ago
All day I've been seeing reserve audit posts from all the crypto companies. To me this also screams "Please don't make a run on us or we're screwed"
- Scoundreller 4y agoProof of assets is only one half of the solvency equation though. What are the liabilities and who are they to?
- mikeyouse 4y agoEven the assets are questionable — as Tether’s attestation language change shows. They value their assets at what they’re worth “in normal market conditions” which is a flashing red light for bank run vulnerability.
- EVa5I7bHFq9mnYK 4y agoExchange is pretty simple business. Customers deposit coins and fiat, trade between them and pay you commissions. If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. This guy took customer coins to gamble, and lost. Story as old as Romeo and Julia.
- vkou 4y ago> If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. If you don't send any of those coins out, there are no profits for the exchange operator, either. Look at how Coinbase does everything more-or-less by the book, and barely makes money. Trading fees just don't cut it. Yet, some fly-by-night exchange incorporated in the Bahamas is offering wild signup bonuses and lower fees and yield that would make Scrooge McDuck blush.
- EVa5I7bHFq9mnYK 4y agoYeah, those trading fees won't support billion dollar IPOs .. investors need to see clear world domination path.
- bananapub 4y agowhere are you seeing any actual audits? it looks like the usual nonsense of "here's some bank account balances", with no explanation of what liabilities they hold, or how much related party loan crime they have on their books.