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People are used to divide exchanges between centralized or decentralized, regulated or unregulated, let's forget all this.
There are exchanges which you can only use to buy or sell cryptos, the commercial exchanges, and then there are investment exchanges which want to keep your coins, because they propose you plenty of services for them.
Commercial exchanges are:
bitcoin.de
paxful.com
Investment exchanges are:
binance.com
coinbase.com
poloniex.com
A huge problem is that commercial exchanges are small low profit companies, whereas investment exchanges are making much more money, so some commercial exchanges are turning into investment exchanges. Kraken did that to give an example.
A commercial exchange is just like the currency exchange booth you find in all international airports. You exchange one currency with another. That's it. It's quick and safe. Use investment exchanges at your own risk.
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This is far from a new idea, it's coming from the banking sector, and I believe it should suit cryptos exchanges just fine. Because there are 2 kinds of exchange.
So O.P, how about I say your thread is not complete, because after mentioning that we have two kinds of exchanges, I expected you to give an example which you failed to provide not even one, because by providing that I think it would have help people to understand more what you actually meant, of which I don't mind giving some examples which I stand to be corrected if I'm wrong, as it goes as follows; Commercial exchange (i.e they help people buy and sell coins)1. Binance 2. Coinbase 3. Kucoin 4. Remitano 5. Bitstamp Investment exchange (i.e They help people invest in several coins)1. PancakeSwap 2. UniSwap 3. SushiSwap, e.t.c Sorry, but you got it wrong. Commercial exchanges are: bitcoin.de paxful.com Investment exchanges are: binance.com coinbase.com |
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The difference shall not be limited to regulators, they also matter to everyone.
Commercial exchanges are much safer then investment exchanges. If you don't want to take any risk, don't use the investment exchanges.
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This is just the same as the difference between the features of centralized exchange and those of decentralized exchange.
You totally misunderstood my subject. I described 2 kinds of exchanges, and both can be centralized or decentralized. |
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It seems people here aren't familiar with banking regulations, so I advise them to read the following: https://en.wikipedia.org/wiki/1933_Banking_ActJust as I approve those regulations on banks, I wish to get the same on exchanges. It would be good for us, as it would leave simple exchanges unregulated. |
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This is far from a new idea, it's coming from the banking sector, and I believe it should suit cryptos exchanges just fine. Because there are 2 kinds of exchange.
A normal exchange is a company which exchanges fiat currency with cryptocurrency, and vice-versa, taking a small fee in the process. And that's it. Nothing else. I believe these exchanges hardly need to be regulated, because most often they don't store any funds. You make a deal with them, and when it's over, the customer relation is over, everything's terminated.
Besides that, there are exchanges which offer margin trading, which propose lending and borrowing cryptos, and various other high risk activities. Those exchanges need strong regulations, to protect investors.
We have about the same differences between commercial banking and investment banking, and there are many economists arguing about the need to separate (or unite) these 2 activities. We shall have the same discussion with cryptos exchanges.
Many legislators around the world are talking about regulating exchanges, this is what they should talk about first.
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I guess big pools could team up to do that, but the question is for how long. This is not something that would go unnoticed. Many people (well, people smarter than me) would see that there are thousands of bogus transactions coming from that pool, and they would ask difficult questions to pool owners... Many people would react, and i can't imagine this lasting long...
Besides, there's been congestions before, and within 24 hours, everything was back to normal.
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Are people listening to me?
...
No, they aren't.  Major players use everything to play with the market and smaller players react to what the first ones do. Major exchanges are major players also so their games also impact the market, so it is impossible that any serious situation with Binance won't impact. Even if you'll reach some people on the forum (hardly) there are much more in the outer world who will not hear nor you, nor me. To impact the market the one should became the whale. Yeah, not much doubt about that. still, I hadn't expected the market to recover so fast. It's good to see that trouble at an exchange is seen as minor. |
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Are people listening to me?
I'm quite thrilled to see that BTC is back to what it was before the SEC/Binance news. The down period lasted only 24 hours. That is impressive. It shows that BTC traders and holders are getting smarter. They know that one exchange having trouble is not the end of the world, and that we shall go back to business as usual. Good.
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Somehow, it's about the same thing with stocks, people are always overreacting.
On the other hand, this shows how small, and concentrated BTC still is. There are many banks, and if one bank collapse, the currency doesn't follow. But one exchange is sued (it's not collapsing, yet), and BTC loses 5% within the hour. That's not normal. Maybe there aren't enough exchanges, so that one going down shouldn't have any effect on BTC's value.
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6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.
Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.
Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.
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No, I'm quite relaxed about this. It's only an after-effect of the FTX collapse. Besides, there will be no scandal here. Nobody has ever seen any report of the Winkelvoss brothers stealing money to pay gourmet meals delivered by plane, or buying condos to friends like at FTX. Nothing to fear. It's sad, though. Gemini was a good attempt to make BTC attractive to cautious investors.
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also the bail was a contract of 3 relatives plus a lawyer being "trust" of $300m of SBF collateral which they would surrender to the court if SBF were to abscond. due to some relatives and lawyer having some legal licences that can also be revoked if they fail to pay the obligations upon absconding, the court judge at the time(has a personal connection to them) decided that was enough leverage to scare SBF into not running, and enough fear to the "trust" licence revokes and reputation harm of the $250m bail amount to ensure payment would be made if abscond.. thus no real money needed to change hands(though it should have done!)
Yeah, that is a simplified way thanks for explaining this. I knew he got on bail, I knew it was something to do with collateral, and I know a lot of people think it's not right but legally, this is what happens all the time. No money moved. Now that they've also recovered 5 billion, this bail amount doesn't seem much at all, especially if the most likely is that it will harm future reputation of all involved. And you know for sure this isn't the end for them, they want to pick up again. Yes, it's twisted but they say it's legal so I guess it is. What I criticize is that if I would be arrested (or any average person) with the possibility to be freed on bail, I wouldn't be able to do anything like that. I hope that when it will come to penalty, SBF will get the normal penalty, and not anything twisted like this. |
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I've been using Electrum for many years, and I give you some advices to make your computer more secure.
1/ Don't install an Electrum icon, nor a shortcut with another icon on your desktop. The software should be hidden.
2/ Create your own directory to install the software, and give it an innocent name, not Electrum, nor anything related to crypto.
It's not much, but if someone steals my computer (that happened to me a while ago), the thief will need time to find anything related to crypto on it.
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Although the crash of FTX caused a shock wave in the crypto world, it did not, in my view, cause bitcoin to plummet as you say. If I'm not mistaken, before the FTX crash, bitcoin price was at 17k, 18k, and after the crash bitcoin dropped to 15.5k. This drop is nothing compared to previous drops from ATH to $30k or the demise of Luna. The collapse of FTX only caused significant damage to those investors who had trusted to leave their money on FTX.
It did. BTC was over 20k before the FTX collapse, and that made BTC loose more than 15% of its value within less than 24 hours, so that was really a shock. The most troublesome being that SBF was seen as the good guy. A man you can trust. If he's a crook, then the whole crypto world is corrupted... I still don't understand how the man managed to be freed on bail without actually funding that bail, but at last, somehow, justice is on the way. Or some perverted kind of justice? I see the case as a test for the US judicial system. |
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Repeat after me: There is no debt ceiling. It just keeps on going higher and higher. Same thing in Europe or Japan. Some economists talk about perpetual loans, the creditors will never get their money back, they just get the interest. Forever. It's crazy, but it's good for BTC, so I won't complain.
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Speculation isn't dead, it's just waiting for something. 2022 brought us several bad news, with the FTX debacle being the last one. BTC badly needs some positive news to go up again.
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I reckon Sam's lawyer can use this as a plead for a type of temporary insanity because he was under the influence of drugs.
There are plenty of videos of him giving interviews, he can't say he was under influence everyday... Still, with crazy American justice, it might work. I didn't know it was possible, but the $250 million bail which set him free, he hasn't paid a single dollar. |
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I'm disgusted.
Less than 24 hours after being extradited to the US, the man is already freed. He paid a $250 million bail with stolen money.
You can't trust justice in America. Corrupt country...
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As sleazy as politicians tend to be, they would have naturally assumed the donations were being made with legitimately earned funds. Now that we know the legitimacy of Bankman-Fried's operation is very much in question, I don't think politicians will want to be associated with his money anymore. If the media start publishing articles about how certain politicians are funded by criminal enterprises, those politicians are going to have difficulty getting re-elected. I could be wrong, but I just don't think that's an issue anymore. He's too toxic to bail out by those in power.
I'm starting to think that Republicans are sharpening their chops and knives to plunge/throw at Democrat seats in pretty much any kind of election that happens within the next few months; governors, counties, senate, reps, etc. All using SBF political donations corruption as ammunition. I'm expecting that. So you received money from that crook?
The guy who is in jail?
The guy who stole millions?
Was that stolen money your received?
Will you give it back? |
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