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Exchanges cannot get bankrun on. What you're watching is fraud being revealed.
by djbebs 4y ago
Exchanges cannot get bankrun on. What you're watching is fraud being revealed.
- solumunus 4y agoOf course they can if they're running on fractional reserves AKA fake liquidity. I don't think there is any regulation against them doing that.
- oldgradstudent 4y agoIn its terms of service, FTX was supposed to hold the customer assets at 1:1 ratio. Not doing so is fraud, and there's already regulation against fraud.
- lupire 4y agoIt's totally illegal and the SEC is chatging everyone they can reach. But most are out of reach, because they are outsdt US and the Presidents refuse to use the military to defend USAns against finacial warfare.
- w23j 4y agoSo-called crypto "exchanges" often function as a mix of exchange, broker-deal and bank.
- eastern 4y ago100%. People are being fooled by the word Exchange. It makes them think that this is the same category as NYSE or NASDAQ. Exchange should be a sort of a reserved word, like bank.
- Bud 4y ago
- lupire 4y agoIt is. But in the real world there is no compiler to prevent misuse. There is only a very lazy and incomplete runtime checker.
- _glass 4y agoEven compiler is kind of a misused word though...
- sweetbitter 4y agoRuntime checker as in the guys who are eager to correct the terminology? Hahahaha
- matheusmoreira 4y agoThey absolutely can if they operate like banks with a fractional reserve. All of them do, they cannot resist the temptation to "efficiently allocate" the huge amount of money they are sitting on.
- lupire 4y agoThat's what the fraud is.