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The problem is, Crypto exchanges advertise themeselves as brokers. Bank run should simply not be possible: customers money/crypto should be "there” in the first
by tarsinge 4y ago
The problem is, Crypto exchanges advertise themeselves as brokers. Bank run should simply not be possible: customers money/crypto should be "there” in the first place and not having be reinvested behind customer’s back. The panick is because delays kind of prove an exchange is fraudulent and the money is potentially gone if the exchanges investments have gone south, simple as that, no need for complex models.
- deleted 4y ago[deleted]
- zarzavat 4y agoDelays don’t prove an exchange is fraudulent. Small delays happen legitimately due to the hot wallet becoming empty during a period of greater than expected withdrawals. In a period of normalcy, these small delays are forgotten. However users are extremely nervous right now. Users can interpret small delays as insolvency, which causes a torrent of withdrawals which take even longer to process. I don’t know if crypto.com is solvent. If you have money on there, you should probably get it out now. But there is also an innocent explanation to all of this.
- lupire 4y agoCrypto.com is a known bad actor, gliding on the dwindling benefit of the doubt. They'be had years to demonstrate a reputation for innocence.
- naijaboiler 4y agobelieve this at your own peril.