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Even if an exchange doesn't start out as a scam, it might become insolvent due to a partial hack, or losing a wallet by accident, or some other screwup. An exc
by roywiggins 4y ago
Even if an exchange doesn't start out as a scam, it might become insolvent due to a partial hack, or losing a wallet by accident, or some other screwup.
An exchange can be technically insolvent for a long time without anyone noticing, and try to fill the hole with money from fees etc. All will look normal from the outside... until too much money gets taken out too fast.
- Jerrrry 4y agoBingo. The only way to be profitable is to fee transactions. There are a magnitude more ways to be unprofitable, however, and because of rampant incompetence, the the scales are clearly favoring the bold/gullible holding large bags of those who have fleeced.