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As the number of crypto exchanges that have imploded spectacularly keeps rising, I'm starting to think that crypto exchanges can't be run profitably. From Quad
by bcrl 4y ago
As the number of crypto exchanges that have imploded spectacularly keeps rising, I'm starting to think that crypto exchanges can't be run profitably. From Quadriga to FTX now, I have friends that were burned 5+ years ago, and yet the same story seems to keep repeating itself. There's a term for people that keep trying the same thing over and over while expecting different results... Unless these are all completely isolated cases of fraud?
- gruez 4y ago>I'm starting to think that crypto exchanges can't be run profitably. Coinbase and Kraken would beg to differ. They have been operating since 2011 and 2012 respectively. >As the number of crypto exchanges that have imploded spectacularly keeps rising Given that the number can only go up (exchanges can't un-implode), this statement seems like a truism. You could say the same about VC backed companies, for instance.
- polygamous_bat 4y ago> >I'm starting to think that crypto exchanges can't be run profitably. > Coinbase and Kraken would beg to differ. They have been operating since 2011 and 2012 respectively. Kraken isn't public, and we don't know their inner balance sheet. However, Coinbase seems to have lost more than a billion dollars in the four quarters [0]. Definitely not how I define "running profitably." [0] https://www.wsj.com/market-data/quotes/COIN/financials https://www.wsj.com/market-data/quotes/COIN/financials
- oldgradstudent 4y ago> They have been operating since 2011 and 2012 respectively. Madoff appeared to be operating well and meeting all withdrawl demands from the 1970s until 2008. FTX appeared to be operating successfully until a week before it collapsed. We'll see when some event forces transparency. Usually it's a collapse, but it could be a lawsuit with discovery for another reason.
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