A lot of these centralized exchanges are using their customers funds and have successfully provided customer's money immediately after using it. But FTX has exposed these schemes, making it difficult for them to continue. Originally I think FTX was running scams while these other exchanges were not. But because no one wants to keep their money in centralized exchanges anymore, it's difficult for these exchanges, to return the money of all their customers in one fell swoop, so this is probably one of the reasons why we're is making some changes as this. It's saddening how FTX has exposed so many exchanges.
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Honestly. I think this also applies to banks too. Imagine what will happen if every customer requested for 100% withdrawal of their funds. A lot of bank CEOs will be exposed - a lot of money wont even be accounted for. Maybe that was why Wyre choose to lock 10%, so that there will never be a situation where everyone is withdrawing all, because they wont be able to fulfill the withdrawals.
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Exactly, this is why wyre chose to do what it did. 10% locked, so that everyone would not choose to take their money at the same time. I think every financial institution does this. FTX just turned his own to a bigger scam, instead of being satisfied with what he's already earning.
Poor poor FTX! We are learning from other people's mistakes. What an eye opener!!!! Not too long ago, i kept close a hefty amount in Binance for 4 months. Its a big 6 digits. How naive and how so fortunate I am now. A single click from the admin would have sent me back to the dust!
I would never try such a thing. Even me who had and kept 70$ on binance, I still felt unsafe, not to talk of a bigger sum. I'm glad if wasn't even FTX. If it's not hive, nowhere else.
Did I even understand the implication of what I did? Now I know much better!
Would have just signed and stamped my empty will, hahaha.
Let's talk about Binance:
Read about it here
Ionomy, HitBTC, and Bittrex have always credited my account when there was a mistake in the memo after communicating with support.
Let's talk about Binance:
Read about it here
Ionomy, HitBTC, and Bittrex have always credited my account when there was a mistake in the memo after communicating with support.
You make an interesting point, and also raise another. While we think of exchanges having 100% of our money on hand because we depositied our funds there, they use the funds to make money. This is also true of banks where fractional banking rules only require them to retain 10% of depositors funds. But the big difference is banks have a central bank which will print money if there is a run on the bank, while in crypto their is no such entity. Ironically crypto enthusiast fled one system we didn't like to another system we are now not fond of...
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