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I would say Coinbase, which is on the stock exchange, and is highly regulated just because of that. Kraken as well. They don’t play the game other exchanges su

by seviu 4y ago

I would say Coinbase, which is on the stock exchange, and is highly regulated just because of that. Kraken as well. They don’t play the game other exchanges such as Binance play and are happy to function just an ordinary simple exchange. However it’s difficult to know since they are not a public company and proof of reserves means nothing without knowing how much debt the exchange has. I don’t want to defend Binance. They are shady and they deserve to go down, but there is no week that goes buy that the USA does not sue anybody or closes a crypto friendly bank such as Signature. Off ramps are all crippled. The European Parliament wants to limit the amount you can deposit to a private wallet. It’s non stop to the point I personally laugh every time. All this feels to me like a coordinated non stop attack and it already has a code name, operation chokepoint 2.0 In all fairness I wish HN was a bit more friendly to crypto specially to Ethereum which has switched to a more ecologically friendly model, that is innovating in regard to zk proofs… Specially in a month that Shanghai upgrade launches, and the probability that the SEC fills a lawsuit against the Ethereum Foundation will exponentially grow.

pavlov 4y ago
> "I wish HN was a bit more friendly to crypto specially to Ethereum which has switched to a more ecologically friendly model" "Why are you so upset now that you found out I'm stealing grandma's savings? Don't you know I stopped beating my wife already. Also I'm doing much less meth these days. A man don't get no respect around here." -- crypto, the deadbeat cousin of actual tech.
- concordDance 4y ago
  How exactly is eth stealing anything from anyone?
  - pavlov 4y ago
    It's primarily a Ponzi Construction Kit.
    - alangibson 4y ago
      Best description of eth I've read
    - Karunamon 4y ago
      Source?
      - _heimdall 4y ago
        https://www.coindesk.com/learn/minting-your-first-nft-a-beginners-guide-to-creating-an-nft/ https://www.coindesk.com/learn/minting-your-first-nft-a-begi...
        Karunamon 4y ago
        Interesting! An artist creating, minting, and selling an NFT is a pretty solid point against the accusation made. A Ponzi scheme has a specific definition. Despite what HN seems to think, it is not shorthand for "crypto thing I don't like/understand".
        bradjohnson 4y ago
        Citation needed on the "selling" part.
        _heimdall 4y ago
        https://www.merriam-webster.com/dictionary/Ponzi%20scheme https://www.merriam-webster.com/dictionary/Ponzi%20scheme Here's the common definition of a Ponzi scheme. While people can debate whether any specific coin or nft built on etherium is a Ponzi scheme, it'd be hard to argue that there aren't plenty of examples. Etherium makes it easy to spin up a new "coin" or token, the article is a prime example.
        cableshaft 4y ago
        Exactly, this list of Ponzi Scheme red flags is from Investor.gov[1]. While certain aspects of the crypto ecosystem may fall under these red flags, most don't, or don't apply to the coins/blockchains themselves. > Many Ponzi schemes share common characteristics. Look for these warning signs: > High returns with little or no risk. Some new shit coins and many NFT projects absolutely make these bullshit claims, but it's well, well known that there's risk by speculating in crypto at this point. We've all seen multiple 80% drops in bitcoin's price (or you can with a simple look at the 5-10 year chart). It's no secret. People speculate in it anyway for other reasons. > Overly consistent returns. Investments tend to go up and down over time. Be skeptical about an investment that regularly generates positive returns regardless of overall market conditions. Except for maybe stablecoins (which we found out this past year aren't exactly stable), no crypto coin can claim to have consistent returns. > Unregistered investments. Ponzi schemes typically involve investments that are not registered with the SEC or with state regulators. This part is true for many crypto coins, and the SEC is going after them now. Bitcoin itself seems to be immune to this by having no centralized component to it, which is unlike most other coins. > Unlicensed sellers. Federal and state securities laws require investment professionals and firms to be licensed or registered. Most exchanges are either licensed and registered if they operate in the US, hence their KYC measures. > Secretive, complex strategies. Yeah, some algorithmic stablecoins are like this (at least the complex part), and you've seen most of them collapse at this point. The rest are pretty simple coins for the most part, and many of them have completely open source code, so there's nothing secretive about it at all. > Issues with paperwork. Account statement errors may be a sign that funds are not being invested as promised. You can't really have an account statement error on the blockchain outside of a 51% attack (which is arguably not an error, just creating a new consensus), although some of the companies that have sprung up around it add obfuscation that can lead to possible account errors. Banks can have account errors as well, though. > Difficulty receiving payments. Be suspicious if you don’t receive a payment or have difficulty cashing out. This one can happen at exchanges, but the blockchains themselves still work and you can transfer with others directly, assuming you have taken your crypto off of exchanges ("Not your keys, not your crypto" as the saying goes). [1]: https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme https://www.investor.gov/protect-your-investments/fraud/type...
bulbosaur123 4y ago
> The European Parliament wants to limit the amount you can deposit to a private wallet. What? Source. How do they plan on enforcing this?
- matheusmoreira 4y ago
  > How do they plan on enforcing this? Tyranny. People make technology to get around their idiotic laws and control. Suddenly they must become more tyrannical than they were before just to maintain the same control they previously enjoyed. We'll either end up with anarchy enabled by subversive technology or totalitarian governments that regulate everything their citizens do online.
  - TheOtherHobbes 4y ago
    That answer is rather light on specifics.
    - matheusmoreira 4y ago
      AML/KYC is just the financial arm of global mass surveillance. They can just trace your withdrawals from an exchange. If you're not mining crypto, you're done.
      - throw101010 4y ago
        Well you can always exchange it peer to peer, without a third-party (exchange/payment processor/etc.) as it is initially meant to be used, but it's true that mining rewards are generally the most anonymous way to acquire it.
        matheusmoreira 4y ago
        > you can always exchange it peer to peer, without a third-party Who's going to show up at some untrustworthy place with fat stacks of cash in order to trade crypto? > as it is initially meant to be used It was meant to replace the USD for everything including everyday transactions.
wolfi008 4y ago
[flagged]
- pixelpoet 4y ago
  Proving their point with your comment, especially ignoring the part about how ethereum is not "burning down the planet", you literally skipped right over that important point they were making and wishing ppl would actually realise. Where's the vitriol for the endless banking scams and money printing? Oh right, that's the hand that feeds all the silicon valley types. HN is often a terrible place for some topics, even surprising ones like computer graphics, and has its own clueless but opinionated "bros" the same way cryptobros are insufferable.
  - wolfi008 4y ago
    Sorry, but proof of stake makes the concept even more nonsensical than it was before. Of course I disapprove of old school banking scams as well. Beyond that, I won't engage in your whataboutism. It's not making the crypto pyramid schemes any better.

by seviu 4y ago

pavlov 4y ago

> "I wish HN was a bit more friendly to crypto specially to Ethereum which has switched to a more ecologically friendly model" "Why are you so upset now that you found out I'm stealing grandma's savings? Don't you know I stopped beating my wife already. Also I'm doing much less meth these days. A man don't get no respect around here." -- crypto, the deadbeat cousin of actual tech.

concordDance 4y ago
How exactly is eth stealing anything from anyone?
- pavlov 4y ago
  It's primarily a Ponzi Construction Kit.
  - alangibson 4y ago
    Best description of eth I've read
  - Karunamon 4y ago
    Source?
    - _heimdall 4y ago
      https://www.coindesk.com/learn/minting-your-first-nft-a-beginners-guide-to-creating-an-nft/ https://www.coindesk.com/learn/minting-your-first-nft-a-begi...
      - Karunamon 4y ago
        Interesting! An artist creating, minting, and selling an NFT is a pretty solid point against the accusation made. A Ponzi scheme has a specific definition. Despite what HN seems to think, it is not shorthand for "crypto thing I don't like/understand".
        bradjohnson 4y ago
        Citation needed on the "selling" part.
        _heimdall 4y ago
        https://www.merriam-webster.com/dictionary/Ponzi%20scheme https://www.merriam-webster.com/dictionary/Ponzi%20scheme Here's the common definition of a Ponzi scheme. While people can debate whether any specific coin or nft built on etherium is a Ponzi scheme, it'd be hard to argue that there aren't plenty of examples. Etherium makes it easy to spin up a new "coin" or token, the article is a prime example.
        cableshaft 4y ago
        Exactly, this list of Ponzi Scheme red flags is from Investor.gov[1]. While certain aspects of the crypto ecosystem may fall under these red flags, most don't, or don't apply to the coins/blockchains themselves. > Many Ponzi schemes share common characteristics. Look for these warning signs: > High returns with little or no risk. Some new shit coins and many NFT projects absolutely make these bullshit claims, but it's well, well known that there's risk by speculating in crypto at this point. We've all seen multiple 80% drops in bitcoin's price (or you can with a simple look at the 5-10 year chart). It's no secret. People speculate in it anyway for other reasons. > Overly consistent returns. Investments tend to go up and down over time. Be skeptical about an investment that regularly generates positive returns regardless of overall market conditions. Except for maybe stablecoins (which we found out this past year aren't exactly stable), no crypto coin can claim to have consistent returns. > Unregistered investments. Ponzi schemes typically involve investments that are not registered with the SEC or with state regulators. This part is true for many crypto coins, and the SEC is going after them now. Bitcoin itself seems to be immune to this by having no centralized component to it, which is unlike most other coins. > Unlicensed sellers. Federal and state securities laws require investment professionals and firms to be licensed or registered. Most exchanges are either licensed and registered if they operate in the US, hence their KYC measures. > Secretive, complex strategies. Yeah, some algorithmic stablecoins are like this (at least the complex part), and you've seen most of them collapse at this point. The rest are pretty simple coins for the most part, and many of them have completely open source code, so there's nothing secretive about it at all. > Issues with paperwork. Account statement errors may be a sign that funds are not being invested as promised. You can't really have an account statement error on the blockchain outside of a 51% attack (which is arguably not an error, just creating a new consensus), although some of the companies that have sprung up around it add obfuscation that can lead to possible account errors. Banks can have account errors as well, though. > Difficulty receiving payments. Be suspicious if you don’t receive a payment or have difficulty cashing out. This one can happen at exchanges, but the blockchains themselves still work and you can transfer with others directly, assuming you have taken your crypto off of exchanges ("Not your keys, not your crypto" as the saying goes). [1]: https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme https://www.investor.gov/protect-your-investments/fraud/type...

bulbosaur123 4y ago

> The European Parliament wants to limit the amount you can deposit to a private wallet. What? Source. How do they plan on enforcing this?

matheusmoreira 4y ago
> How do they plan on enforcing this? Tyranny. People make technology to get around their idiotic laws and control. Suddenly they must become more tyrannical than they were before just to maintain the same control they previously enjoyed. We'll either end up with anarchy enabled by subversive technology or totalitarian governments that regulate everything their citizens do online.
- TheOtherHobbes 4y ago
  That answer is rather light on specifics.
  - matheusmoreira 4y ago
    AML/KYC is just the financial arm of global mass surveillance. They can just trace your withdrawals from an exchange. If you're not mining crypto, you're done.
    - throw101010 4y ago
      Well you can always exchange it peer to peer, without a third-party (exchange/payment processor/etc.) as it is initially meant to be used, but it's true that mining rewards are generally the most anonymous way to acquire it.
      - matheusmoreira 4y ago
        > you can always exchange it peer to peer, without a third-party Who's going to show up at some untrustworthy place with fat stacks of cash in order to trade crypto? > as it is initially meant to be used It was meant to replace the USD for everything including everyday transactions.

wolfi008 4y ago

[flagged]

pixelpoet 4y ago
Proving their point with your comment, especially ignoring the part about how ethereum is not "burning down the planet", you literally skipped right over that important point they were making and wishing ppl would actually realise. Where's the vitriol for the endless banking scams and money printing? Oh right, that's the hand that feeds all the silicon valley types. HN is often a terrible place for some topics, even surprising ones like computer graphics, and has its own clueless but opinionated "bros" the same way cryptobros are insufferable.
- wolfi008 4y ago
  Sorry, but proof of stake makes the concept even more nonsensical than it was before. Of course I disapprove of old school banking scams as well. Beyond that, I won't engage in your whataboutism. It's not making the crypto pyramid schemes any better.