4 ms·

> One interesting thing is that properly run crypto custodians don't make the news, are 100% collateralized and can withstand 100% withdrawals in an orderly fas

> One interesting thing is that properly run crypto custodians don't make the news, are 100% collateralized and can withstand 100% withdrawals in an orderly fashion. Ah, the mythical "properly run crypto custodian". Does such a fantastic beast actually exist?

mhluongo 4y ago
BitGo seems to have done fine after all these years.
SturgeonsLaw 4y ago
I cashed out back in 2021 but back before that I used to hold some crypto assets on Nexo. I don't have any inside knowledge of their operations, but they always seemed to take compliance and overcollateralisation more seriously than others, and they have certainly weathered the storms. I'm purely in tradfi investments now because, well, look at crypto.. Honestly I would expect the market to be won by an exchange that plays by the rules. The dodgy ones will outcompete in the short term, but they are prone to instant and complete destruction in a way that the well run ones aren't. Additionally, it's clear as day that regulation is coming, so those exchanges who are already compliant will have an advantage.
- paxys 4y ago
  Nexo settles federal and state regulatory lawsuits for $45M (https://www.bloomberg.com/news/articles/2023-01-19/crypto-lender-nexo-pays-45-million-to-settle-with-sec-states#xj4y7vzkg https://www.bloomberg.com/news/articles/2023-01-19/crypto-le...) Nexo pulls out of US market (https://financefeeds.com/nexo-cease-its-business-operations-in-the-united-states/ https://financefeeds.com/nexo-cease-its-business-operations-...) So yeah...
  - mhluongo 4y ago
    Hm, none of this is about fractional reserve, right? So the OP's point stands?
- rippercushions 4y ago
  I was expecting Coinbase to come out ahead here, but they're getting stomped on by the SEC and they're managing to lose hundreds of millions a quarter. Gemini has also been charged due to their involvement with the Genesis staking ponzi. Who's left?
kirbypineapple 4y ago
Anchorage, Finoa, Copper, Gemini, Coinbase Custody, Fidelity...the list goes on.
- keithalewis 4y ago
  Just ask P. T. Barnum.
- everfree 4y ago
  Circle and Paxos are big players in custody, too.

mhluongo 4y ago

BitGo seems to have done fine after all these years.

SturgeonsLaw 4y ago

I cashed out back in 2021 but back before that I used to hold some crypto assets on Nexo. I don't have any inside knowledge of their operations, but they always seemed to take compliance and overcollateralisation more seriously than others, and they have certainly weathered the storms. I'm purely in tradfi investments now because, well, look at crypto.. Honestly I would expect the market to be won by an exchange that plays by the rules. The dodgy ones will outcompete in the short term, but they are prone to instant and complete destruction in a way that the well run ones aren't. Additionally, it's clear as day that regulation is coming, so those exchanges who are already compliant will have an advantage.

paxys 4y ago
Nexo settles federal and state regulatory lawsuits for $45M (https://www.bloomberg.com/news/articles/2023-01-19/crypto-lender-nexo-pays-45-million-to-settle-with-sec-states#xj4y7vzkg https://www.bloomberg.com/news/articles/2023-01-19/crypto-le...) Nexo pulls out of US market (https://financefeeds.com/nexo-cease-its-business-operations-in-the-united-states/ https://financefeeds.com/nexo-cease-its-business-operations-...) So yeah...
- mhluongo 4y ago
  Hm, none of this is about fractional reserve, right? So the OP's point stands?
rippercushions 4y ago
I was expecting Coinbase to come out ahead here, but they're getting stomped on by the SEC and they're managing to lose hundreds of millions a quarter. Gemini has also been charged due to their involvement with the Genesis staking ponzi. Who's left?

kirbypineapple 4y ago

Anchorage, Finoa, Copper, Gemini, Coinbase Custody, Fidelity...the list goes on.

keithalewis 4y ago
Just ask P. T. Barnum.
everfree 4y ago
Circle and Paxos are big players in custody, too.