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12B in realized losses, as compared to 179B in unrealized volume. Seems like an apples to oranges comparison there.
by solarpunk 4y ago
12B in realized losses, as compared to 179B in unrealized volume.
Seems like an apples to oranges comparison there.
- mattdesl 4y agoSure—the point is, $12 billion of transfers being attributable to exploits over several years is quite small considering crypto markets are slinging an order of magnitude more than that every 24 hours.
- lxgr 4y agoThat‘s a bit like calling credit card payment fraud negligible by contrasting it with all monetary movements, including HFT trading volumes and interbank payment flows.
- mattdesl 4y agoI am simply putting the number in context. Credit cards dealing with $8B USD of fraudulent charges per year sounds like a staggering amount until you realize it is a small fraction of all transactions. https://www.security.org/digital-safety/credit-card-fraud-report/ https://www.security.org/digital-safety/credit-card-fraud-re...
- lxgr 4y agoYes, but the issue with your comparison is that you are comparing amounts across categories. Fraud losses are definitionally realized losses, whereas gross crypto transaction volume includes things like a single entity rebalancing funds across wallets or exchanges. On a chain with low or zero fees, a single actor can trivially generate billions of transaction volume like that on a single day.
- mattdesl 4y agoUniswap charges a fee per swap. Generating billions of dollars worth of fake stablecoin transaction volume per day would cost you millions of dollars. The comparison is suitable to show relative scale: $12B over some years sounds like a lot, until you realize it is a small fraction of the total crypto market. Likewise, you could paint VISA as being rampant with fraud by pointing to the many billions lost per annum in credit card fraud, but this represents a small percentage of all VISA activity.