The Hypocritical World of Regulation and Traditional Finance
Am I the only one that finds it super amusing that auditing companies and regulators are questioning the reserves of crypto exchanges on whether their customer assets are back 1:1 ????
Now don't get me wrong, I think they should be backed 1:1 as this prevents any of the issues that we have seen with....oh that's right traditional banks in 2008 (among other times)
Fractional Reserve, It's Okay for Your Banker.
It is just amusing to me that auditing firms work with traditional banks and there fractional reserves, as in 10% of money needs to be in reserves, but then they pull out of auditing crypto firms due to concerns how the public will view their findings, even when their findings show 1:1, just like the global audting firm Mazars did.
Humans Love to Make Stuff Complicated
All this is easily remedied. Creating freaking regulation already, which will actually let crypto expand 10X cus if crypto exchanges are given the same rules as traditional banks, let the leverage monsoon begin!
Or, stop with the FUD. Yes FTX was a bad operator, but if other operators check out then why is the whole industry being penalized.
Furthermore, why has 5 billion been withdrawn from binance in a 2 day span? This just organically happened? I guess a run for the exit can really cause such a move, but something feels orchestrated here as well...I won't jump into conspiracies though.
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Haha! Hear her!
I'm also pretty sure that crypto exchanges don't take their user's funds to then invest this money in wars and farmaceutical companies and so on and so forth. At least, I hope they don't.
Governments can't regulate against stupidity, no matter how much they try or how many regulations get generated.
The FTX Fiasco would have happened had the product been stocks (or smartphones or pork bellies) rather than cryptocurrencies.
FTT and the cryptocurrencies listed on FTX did what they were supposed to do. The problem wasn't with cryptocurrencies; the problem was with ownership and management.
Had FTX been a DEX, we may not even have heard about SBF. But FTX was a centralized exchange-- a middleman-- for holders of cryptocurrencies. Whatever security people would have had had they used their own keys was sacrificed when they allowed their crypto to become FTX's crypto.
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I hear ya, the difference for the regular joe's is traditional regulated banks get bailouts, crypto exchanges do not.
Not that the former should get bailouts, but sadly do.
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It is amusing indeed and 'amusing' is good, as smiling is healthy ;<)
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There is speculation that the supporters of FTX are behind the Binance withdrawals. I still think it is better that this happened because Binance proved their resilience here. That resilience is not enough. They are still a centralized entity and I would like to have my own keys or else; it is not my crypto.
My investigation into FTX: https://leofinance.io/@vimukthi/ftx-was-truly-about-politics-money-laundering-and-wwiii-or-this-is-what-i-manged-to-find-about-it
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Exactly, the whole point of crypto is decentralization. Exchanges are good for being a buy/sell medium. Shouldn't be for anything else.
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