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If they are not operating on fractional reserve or doing anything shady then this is no big deal and how the system is supposed to work. A smaller run than thi
by benjaminwootton 4y ago
If they are not operating on fractional reserve or doing anything shady then this is no big deal and how the system is supposed to work. A smaller run than this took down FTX.
- jokoon 4y agoProbably some money laundering scheme going on
- deleted 4y ago[deleted]
- enkid 4y agoDo they not make money off the deposits somehow?
- deleted 4y ago[deleted]
- X6S1x6Okd1st 4y agoThey take a cut of trades. No one external actually knows if they are using deposits for other purposes
- ipaddr 4y agoThey sell coin listing access and coin drop promo access and can sell on insider information. I imagine deals for certain coin access are paid for in that currency
- wmf 4y agoOver the last year we've discovered that there is no safe way to do this. Every company that lent out customer crypto deposits is now bankrupt. Unlike "tradfi" where you can lend to a stable government or a diverse basket of companies engaged in the real economy, crypto has no risk-free rate of return.