Exchanges or platforms with too good offers. Be careful

[tranthidung]

Too many topics recent days about FTX, this one is not about them. I would like to discuss something more general

In the past, I wrote Reminder for crypto newbies, traders. Be cautious with new exchanges and now I would like to remind newbies about exchanges or platforms with too good offers.

We know the saying "Too good to be true". Again, it is true in cryptocurrency market. During this year, we have had two big lessons

• Terra
• FTX exchange

Terra
Terra and UST was built with a Ponzi scheme, with very high APY up to 20%. Below is a remarkable point on its vital Achilles.

The large demand for UST was driven because of a savings protocol called Anchor on Terra’s blockchain, which promised 20 percent in annual percentage yield

The Ponzinomics were just too obvious: When you pay money for nothing, and stash your nothing in a protocol with the expectation that it will give you a 20 percent yield—all you end up with is 20 percent of nothing.

FTX
Months ago, I am not sure when but maybe in 2020 when transaction fee on Ethereum network was very very high and expensive as consequence of DeFi and NFT hypes, FTX is a first or only exchange which waive withdrawal fee on ERC20 chain for users. The cost for them during those months should be very expensive.

Honestly guys, I enjoyed it as many of you but I have never stored my money on that exchange too long. Back in that year, I did not like their user interface too and maybe it is another reason which keeps me away from FTX exchange.

Institutional investors
It is a terrible trend in the last bull run when people over-talked about institutional investors, venture capitals and they made decisions mainly based on backers and VCs. I am sure majority of cryptocurrency degens in the past bull runs simply look at a project's backers to decide spending money or not.

They are lazy and believe in third-party, skip their own due diligent research and Alameda Research and FTX are very bloody examples for them this year. It should be recalled in future to remind people about consequence of over dependence on VCs.

From Terra, you can learn that if a platform (in any area) gives you 'too good to be true offers', you should be extremely careful and should not touch it. Not only Terra but also many exchanges and DeFi platforms have a lot of staking programs for users (in altcoins or stable coins). I never touch them and you should not too especially if their offers are too good.

From FTX and from my past topic about Altex exchange, you should never believe in exchanges which give you too good benefit. Short term, you can enjoy it but long term, you will never know how it end.

Reference[

• CZ’s FAQ 8 - On LUNA/UST and Taking the Right Risks
• Why Stablecoin Interest Rates Are So Damn High
• Terra’s Crypto Meltdown Was Inevitable

[Rruchi man]

We know the saying "Too good to be true". Again, it is true in cryptocurrency market. During this year, we have had two big lessons

There are still platforms with good offers, even one's with very good offers that can seem too good to be true, but they are legit. There can also platforms without offers, that don't give off a bad feeling but they are not not legit in their own way. My point is, regardless of the reputation of a platform or exchange, don't let your guard down that you become careless with them. Be careful with all platforms, offers or no offers.

[palle11]

Terra
Terra and UST was built with a Ponzi scheme, with very high APY up to 20%. Below is a remarkable point on its vital Achilles.

The large demand for UST was driven because of a savings protocol called Anchor on Terra’s blockchain, which promised 20 percent in annual percentage yield

The Ponzinomics were just too obvious: When you pay money for nothing, and stash your nothing in a protocol with the expectation that it will give you a 20 percent yield—all you end up with is 20 percent of nothing.

FTX
Months ago, I am not sure when but maybe in 2020 when transaction fee on Ethereum network was very very high and expensive as consequence of DeFi and NFT hypes, FTX is a first or only exchange which waive withdrawal fee on ERC20 chain for users. The cost for them during those months should be very expensive.

Honestly guys, I enjoyed it as many of you but I have never stored my money on that exchange too long. Back in that year, I did not like their user interface too and maybe it is another reason which keeps me away from FTX exchange.

As usual there is always something that we should watch out for when dealing online. You have seen some of these loopholes as a sign for something not right and was able to take the hard decision not to leave your coins there. I think it is right when we see these things to stay outside and watch maybe we could be right some day in our observation. I have not search this myself to confirm what your point is but if I see traces of something being too good of an offer, my sixth sense is activated.

[ajiz138]

We all understand that after what happened with FTX, it has become my realization that any platform with any offer that is given is not necessarily entirely good because there have been so many terrible failures that will have an impact on us if a platform falls and collapses again.
I honestly didn't think that such a large FTX exchange in the world had to fall overnight without any prior notice this even contributed to CZ's suspicions which ended up being a bad day for SAM.

Once again I don't want to put my hopes again on the platform even though they have offered an interesting one for me, now I don't want to be seduced by the platform anymore and it's true in the saying it's too good to be true.
The issue now is Crypto.com and Gate.io being fried news they have lack of liquidity what I know in the media, although this is not necessarily the truth I will remain vigilant about this.

[electronicash]

We all understand that after what happened with FTX, it has become my realization that any platform with any offer that is given is not necessarily entirely good because there have been so many terrible failures that will have an impact on us if a platform falls and collapses again.
I honestly didn't think that such a large FTX exchange in the world had to fall overnight without any prior notice this even contributed to CZ's suspicions which ended up being a bad day for SAM.

Once again I don't want to put my hopes again on the platform even though they have offered an interesting one for me, now I don't want to be seduced by the platform anymore and it's true in the saying it's too good to be true.
The issue now is Crypto.com and Gate.io being fried news they have lack of liquidity what I know in the media, although this is not necessarily the truth I will remain vigilant about this.

crypto.com got the funds back thanks to gate. but i'm still wondering why they would send ETH to gate. i don't think its a mistake like they said. pretty sure they also wanted to dump ETH.

20% rate from LUNA is overly too good to be true. the 6% of some platforms that i also tried joining is also too good to be true but because project was running still since 2017, its a dex and tokens are not sent to them i'm comfortable my coins will still be mine. still i'm not sure what they do.

[AakZaki]

FTX which has been built for 3 years disappeared overnight which proves that crypto is boomeranging for those who are inconsistent and play tricks on their users. This is a warning to other exchange platforms. Offers that seem very profitable and provide convenience for users turn out to have other purposes behind them. FTX is a vivid example of how ruthless they are today and has cost investors a lot. Binance who was originally going to help meaah canceled it and released FTX without any help.
whether you have to have which exchange platform at this time, because this FTX incident is a strong warning that your assets are not your assets if they are still on the exchange. too good an offer at this time would be highly suspect. Investors are starting to be wary because their money can disappear overnight

[_BlackStar]

whether you have to have which exchange platform at this time, because this FTX incident is a strong warning that your assets are not your assets if they are still on the exchange. too good an offer at this time would be highly suspect. Investors are starting to be wary because their money can disappear overnight

NYKNYC, this should be suggested more often than not. Learn the lesson and stay safe with your keys.
At first it is difficult to identify what is the purpose behind all the tempting offers as some of them have good support and are trusted by many. Yet the case of FTX has been one of the reasons why we have come to the conclusion that anything that looks mighty today will most likely collapse after the troubles that befell it.

Nothing is ever really safe in crypto, but by being concerned with good security practices users will be able to minimize their losses. Don't put your funds on the exchange, and now echo this. Don't keep your funds on the exchange, and now consider this ^{[Withdraw Your Money From The Exchange].}

[Lida93]

Juicy offers platforms are mostly for those with short cuts mindset to making huge profits overnight. Which they eventually loss even the little they had. From experience I'll say, it's only greed and lack of interest to discipline oneself to knowledge of that which is legit way of investing to make profits that leads many people fall victim of juicy profit promising platforms that only end up crashing with their money.

[hatshepsut93]

From a newbies perspective 8% per year or even 20% per year sounds even conservative when compared to shitcoin projects that promise those returns per month or even per week. These exchanges are preying on retail investors who can't tell a reasonable investment opportunity from a "too good to be true" offer. No matter how many times you tell people to do their own research, there will be millions who will still become victims of these scams, even despite being aware that such scams exist.

[Smartvirus]

FTX which has been built for 3 years disappeared overnight which proves that crypto is boomeranging for those who are inconsistent and play tricks on their users.

Is the result people get for trying to gain everything out of nothing.
Like, some investors aren't ready to lose anything, wants to have there jobs and fees paid for them and then, they just work alway with everything. Of course they are going to get stinged.

The increased fee rate on conducting ICOs and IEOs on the bitcoin blockchain, drived the focus on the ETH blockchain and we had projects pulling in, pushing its fee rate higher and then, we have other chains promising blocs and protocols coming up and still do, the  you have a project, function on an expensive blockchain, promises to wipe up your fees and pay returns on qhat what deposited with them and you don't get scared, such investor deserves to lose that money and learn some lessons off it. A costly one at that!

[ajiz138]

Once again I don't want to put my hopes again on the platform even though they have offered an interesting one for me, now I don't want to be seduced by the platform anymore and it's true in the saying it's too good to be true.
The issue now is Crypto.com and Gate.io being fried news they have lack of liquidity what I know in the media, although this is not necessarily the truth I will remain vigilant about this.

crypto.com got the funds back thanks to gate. but i'm still wondering why they would send ETH to gate. i don't think its a mistake like they said. pretty sure they also wanted to dump ETH.

According to a source from one of the Crypto.com employees it's unlikely that $400m in assets was transferred by accident, so obviously there's a bit of drama at play in this even though we know crypto.com has escalated after their efforts I don't know if this is a hoax or not but there has been a lot of panic because several exchanges are involved in this which is linked to FTX.

There have been many issues whether this will be a longer agony about the linked exchange?

https://twitter.com/MarioNawfal/status/1591853036208803840

[Renampun]

just like you, I am attracted to using FTX because they cover part of the fees for erc20 transactions and it really helps me. Moreover, they also have very low btc withdrawal fees.
but FTX's collapse make me can not withdrawing my assets to this day, I also can't open FTX on my iPhone. I thank to this bad experience, it taught me not to keep assets in a CEX for long time.
Previously I also invested several times in defi tokens which offer tantalizing ROI, in fact, now that defi tokens are just shittoken, what an amazing experience.

[Upgrade00]

just like you, I am attracted to using FTX because they cover part of the fees for erc20 transactions and it really helps me. Moreover, they also have very low btc withdrawal fees.

The perceived benefits and convenience are outweighed by the risks of using a CEX, and it doesn't have to be a bad experience that would make you realize that you shouldn't keep your funds on a centralized exchange, it's a common advice here and on some other crypto platforms.

Do research for some DEXes or P2P platforms which can serve as a medium of exchange without the risk of losing your privacy or your funds.

[sunsilk]

Before it was like, we're getting reminders to avoid most of the new exchanges. These days, there's no longer any exception about being careful to these platforms and it should be for all of them, new or old.

I think that the glory days of DEXes will be back and more people are going to trade there instead while going off into a centralized platform where FTX is one of them.

[Renampun]

just like you, I am attracted to using FTX because they cover part of the fees for erc20 transactions and it really helps me. Moreover, they also have very low btc withdrawal fees.

The perceived benefits and convenience are outweighed by the risks of using a CEX, and it doesn't have to be a bad experience that would make you realize that you shouldn't keep your funds on a centralized exchange, it's a common advice here and on some other crypto platforms.

Do research for some DEXes or P2P platforms which can serve as a medium of exchange without the risk of losing your privacy or your funds.

Previously, I used bisq several times, but because I was tempted by the low FTX fee, I moved there. I should have realized that it is not good to keep funds in CEX for too long, they use the liquidized users' money there for their other business development. this issue makes theymos provide a very good announcement, this is a valuable lesson for all of us.

Reminder: do not keep your money in online accounts

[ThemePen]

I think you should one more.
It is in the queue and can scam at anytime. We are looking too much FUD in crypto.com exchange. It can be the next FTX exchange. So don't save your assets in exchages just take them out as soon as possible.

As you can see an example here.

Source: Twitter

[Upgrade00]

Previously, I used bisq several times, but because I was tempted by the low FTX fee, I moved there. I should have realized that it is not good to keep funds in CEX for too long

Different users have different reasons for forfeiting their privacy and autonomy to a third-party. Could be low fees, faster transactions, convenient exchanges etcetera, but as I mentioned earlier and which many users have found out, the risk is greater when compared to these perceived positives.

You would not give coneone your wallet to hold, regardless how reputable they look or the promises they make, so why would you allow third parties control your funds and allow you use it at their discretion?

Reminder: do not keep your money in online accounts

Unfortunately, most people would forget about the incident in a few days to weeks and all the warnings to avoid CEX would not be a trending topic anymore.

[Taskford]

Good offers will be there and there are many reputable platform offer this to make people be attracted to use their services. Although some of them is not quite bad after all since they really deliver, but its just we should always put our minds that however trusted they are and how big the platform it is chances that FTX scandal may still happen on one of them. So better listen to people telling that don't save your money on exchange/platforms to avoid losing it better to save our funds on our hardware wallets to be more secured.

[Sayeds56]

Before it was like, we're getting reminders to avoid most of the new exchanges. These days, there's no longer any exception about being careful to these platforms and it should be for all of them, new or old.

I think that the glory days of DEXes will be back and more people are going to trade there instead while going off into a centralized platform where FTX is one of them.

What is too good is rarely true because it is not workable in the long run so we should not put our hard-earned money in such  offers of exchanges or any other investment platforms. Such offers come up with huge reward to play with greed emotions of investors and steal their hard earned money.The reward offers are huge & unrealistic and  in most of cases not based on any good  business plan which is workable. Better to stay away from such offers and invest in schemes which are backed by well reputed firms and offer realistic returns.

[yazher]

It's not just a lesson but a huge one to take heed of next time because now we know that such a thing really exists and we all thought these kinds of exchanges are just for preventive measures only I mean a "What If" scenario but we know now that they are actually real and I think the most trend right now is the hard wallet which will gonna be used for storing crypto assets. After what happened with those giant exchanges, people will gonna be extra careful when it comes to storing their cryptos and they will gonna avoid exchanges for long-term holding after what they have witnessed.