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Exactly: they did not control the private keys, so they were able to be defrauded. There are DEXs which you can deposit funds and retain full custody.
by siftrics 4y ago
Exactly: they did not control the private keys, so they were able to be defrauded.
There are DEXs which you can deposit funds and retain full custody.
- freejazz 4y agoSo what? FTX was a crypto company in the crypto economy, trading crypto products. this is some sort of no true scottsman crypto bullshit. the crypto economy clearly exists well beyond DEX's and its also pretty clear that the vast majority of the money is on CEX's so what's your point??
- siftrics 4y agoYou're conflating off-chain traditional finance (rife with fraud and theft) with on-chain programs. We have never once seen someone successfully steal users' funds without access to their private keys. That's the entire point of crypto. Crypto never claimed to prevent fiat fraud. Crypto never claimed to prevent human custodians from absconding with funds.
- freejazz 4y agoNah, I'm not arbitrarily deciding that CEX's "aren't crypto". It's a fallacy. No true crypto. No point in responding further to this approach.
- siftrics 4y agoIt's not a fallacy because there is meaningful distinction. Centralized finance is subject to the whim of creditors and custodians. Decentralized finance mathematically prevents theft within the system.
- freejazz 4y agoI'm not saying CEX and DEX are the same. You are saying only one of them is crypto. That's obviously not true.
- siftrics 4y agoOkay we can use whatever language you wanna use, buddy. The point is, if you self-custody your funds, no one can take them from you except by threatening you. Everyone had their funds taken from them because they did NOT self-custody. Everyone could have gotten all the utility of FTX (trading spot and derivatives) via a self-custody solution (a DEX). Stop blaming self-custody solutions and stop trying to make self-custody solutions illegal. They literally mathematically prevent this type of theft and fraud.
- freejazz 4y agoYou really got me. I invented the word crypto and I'm the one trying to make those solutions illegal. Also, I'm Satoshi!!