3 ms·

In the current climate, I'm left wondering who still has their crypto on exchanges. Which maybe thats the problem - people withdrawing funds causing even more b

In the current climate, I'm left wondering who still has their crypto on exchanges. Which maybe thats the problem - people withdrawing funds causing even more bank runs.

stingraycharles 4y ago
People usually have crypto on exchanges for leverage, which is a valid reason. People do this with many stock brokers as well, e.g. for option trading.
- coffeebeqn 4y ago
  That’s probably a fairly small minority who really really like gambling. I had some ETH on coinbase until earlier this year when I sold it because that was the easiest method.
  - cypress66 4y ago
    You underestimate the amount of degens in this space.
mderazon 4y ago
Correct, there seems to be an exodus from exchanges or at least moving to decentralized exchanges
bearjaws 4y ago
knowing how lazy & comfortable people are with banks probably 90% of the 'casual' investor space is entirely on exchanges.
boppo1 4y ago
I had mine on Gemini, which I actually trust as the most reliable exchange. I don't expect them to run into trouble[0] as they've submitted to NY finance regulations and haven't dabbled in obvious scams like Tether. However I'm taking them off today on principle. I bought-to-hold because I think the tech is cool and I like the 'emotion' of having an investment to motivate me to keep an eye on the space. But if I really think the tech is interesting at the protocol level and think it might find future application, I should embrace self-custody, which is the whole point.
dillondoyle 4y ago
I have something like 600 stuck in blockfi (original 1k - market value since then). I had almost totally forgot about it until someone posted something on reddit, and they sent an email, and now I can't get the money out. I believe it's 50% 'stablecoin' 50% btc. I do not follow crypto and think the proselytizers are a bit crazy. In my mind I wanted a small amount of crypto exposure. But post this stupidness, 5-6% or whatever interest does not correlate with what the actual risk seemed to be in my mind. well rated corporate bonds are approaching that now. I was just googling examples I think big name corporates are sitting like 5.3% so in my mind 5-6% was not a big bright ponzi warning sign, especially since they stopped taking new deposits to 'go legit.' Like afaik there are big brand name corps that are b level rated that have coupons that or higher. and would be shocking if they all went bust in the same week. The risk -> return % seems like the yield should have been bigger https://fred.stlouisfed.org/series/HQMCB6YR https://fred.stlouisfed.org/series/HQMCB6YR

In the current climate, I'm left wondering who still has their crypto on exchanges. Which maybe thats the problem - people withdrawing funds causing even more bank runs.

stingraycharles 4y ago

People usually have crypto on exchanges for leverage, which is a valid reason. People do this with many stock brokers as well, e.g. for option trading.

coffeebeqn 4y ago
That’s probably a fairly small minority who really really like gambling. I had some ETH on coinbase until earlier this year when I sold it because that was the easiest method.
- cypress66 4y ago
  You underestimate the amount of degens in this space.

mderazon 4y ago

Correct, there seems to be an exodus from exchanges or at least moving to decentralized exchanges

bearjaws 4y ago

knowing how lazy & comfortable people are with banks probably 90% of the 'casual' investor space is entirely on exchanges.

boppo1 4y ago

I had mine on Gemini, which I actually trust as the most reliable exchange. I don't expect them to run into trouble[0] as they've submitted to NY finance regulations and haven't dabbled in obvious scams like Tether. However I'm taking them off today on principle. I bought-to-hold because I think the tech is cool and I like the 'emotion' of having an investment to motivate me to keep an eye on the space. But if I really think the tech is interesting at the protocol level and think it might find future application, I should embrace self-custody, which is the whole point.

dillondoyle 4y ago

I have something like 600 stuck in blockfi (original 1k - market value since then). I had almost totally forgot about it until someone posted something on reddit, and they sent an email, and now I can't get the money out. I believe it's 50% 'stablecoin' 50% btc. I do not follow crypto and think the proselytizers are a bit crazy. In my mind I wanted a small amount of crypto exposure. But post this stupidness, 5-6% or whatever interest does not correlate with what the actual risk seemed to be in my mind. well rated corporate bonds are approaching that now. I was just googling examples I think big name corporates are sitting like 5.3% so in my mind 5-6% was not a big bright ponzi warning sign, especially since they stopped taking new deposits to 'go legit.' Like afaik there are big brand name corps that are b level rated that have coupons that or higher. and would be shocking if they all went bust in the same week. The risk -> return % seems like the yield should have been bigger https://fred.stlouisfed.org/series/HQMCB6YR https://fred.stlouisfed.org/series/HQMCB6YR