Cold storage ALL your crypto or withdraw fiat into your bank account NOW!!!

[adaseb]

If you are holding any crypto on exchanges. Cold storage all that crypto. Get an old laptop or desktop you never use and use Electrum for BTC or use MyEtherWallet for ETH and ERC20 tokens. Don't connect that laptop to the internet and you got secure cold storage. If you have a hardware wallet then use that.

If you have any fiat on exchanges. Withdraw them into your bank account ASAP!.

If you have any stablecoins either convert into real fiat and withdraw into your bank account OR buy crypto with those stablecoins.

This FTX contagion keeps spreading. Right now the issue is with Silvergate bank. They are one of the banks which transfers and holds crypto for most exchanges. The banks stock value has already plummeted 50% since Nov 8th. They claim to have little exposure to FTX. However why is the stock going down everyday???

If Silvergate bank stops operations. What will happen? Who knows. But I don't want to find out.

I don't believe anymore "We are fine!". "We had little exposure to FTX", "etc".

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[skarais]

Stop this panic, everyone should be aware that the exchange is not a safe depository for their assets. Therefore, they don't have to withdraw their funds because of FTX, but rather the safety of their assets.

Somehow I think the impact of FTX will continue to spread, but don't let it turn into FUD for crypto. I will be making withdrawals not because of FTX or anything else going wrong, but purely because I care about the safety of my assets in the long term.

[adaseb]

GBTC is almost reaching 50% discount to Bitcoin. There is speculation that the fund might have to liquidate to save Genesis.

Currently each share holds $15.19 worth of Bitcoin on the fund, however you can buy a share for $8.10 which means its currently trading at a 46.6% discount.

Basically its like buying bitcoin at $8800. A price not seen since Covid crash pretty much.

[Tytanowy Janusz]

Silvergate Capital is not that big player. At least for exchanges like coinbase or binance. According to this article - Silvergate Capital hold $12 billion of funds. Its less than 4% of bitcoin supply and ~20% of binance reserves - https://www.binance.com/en/blog/community/our-commitment-to-transparency-2895840147147652626

Its a dengerous situation, i agree, but not the end of crypto.

SI stock price dump is frightening but its still +50% from the mid 2020 prices. It pump and dump just like crypto.

[Oshosondy]

As a treader, it is not easy to just withdraw fiat, I do not have fiat, i use stable coins Instead and I can never withdraw fiat. To make it easy, buy a hardware wallet which support bitcoin and altcoins, then move all your coins from exchanges to the hardware wallet if you are not using it to trade. I have not more than $250 left on the exchange I am using, which is for trading, leveraging it 2 or 3x to reach the amount desired for it.

[TravelMug]

I guess there's nothing wrong with what the OP is trying to say.

If we have fiat, then withdraw and then hold, still the king though, so we might as well have some in this time.

But crypto, it's different, again, not your keys, not your coins and with the current crisis that we have right now, its better to have fully control of our crypto, have in a wallet that we have full custody and not on exchanges.

[mk4]

If you are holding any crypto on exchanges. Cold storage all that crypto. Get an old laptop or desktop you never use and use Electrum for BTC or use MyEtherWallet for ETH and ERC20 tokens. Don't connect that laptop to the internet and you got secure cold storage. If you have a hardware wallet then use that.

Heads up: Just buy a Ledger/Trezor hardware wallet. I don't think most people can confidently and properly secure a computer, even if it's not being used for daily personal usage.

[dimonstration]

Fair enough. FTX has a multi billion dollar loss and I’m sure that all crypto company that exposed loss a lot of FTX bankruptcy. Avoiding all the exchange, DeFi and Blockchain involve is the best way to avoid loss when the company went down. Most of the FTX network are all centralized, It’s very risky to let your balance stay in there since a lot of money is loss due to SBF financial mismanagement.

Currently I’m on fiat because crypto even stablecoin might suffer huge dump when the general market enters the panic mode.

[m2017]

Stop this panic, everyone should be aware that the exchange is not a safe depository for their assets. Therefore, they don't have to withdraw their funds because of FTX, but rather the safety of their assets.

Somehow I think the impact of FTX will continue to spread, but don't let it turn into FUD for crypto. I will be making withdrawals not because of FTX or anything else going wrong, but purely because I care about the safety of my assets in the long term.

You are right, panic is not appropriate here.
It has always been known that exchanges are not a safe place to store crypto currencies, which was warned many times, but most ignored it until the crash of FTX. Now all of a sudden everyone is fussing about it. This is another hype, but if earlier it was hype for the growth of the price of crypto currencies, now it is a hype for the withdrawal of crypto currencies from exchanges. It was necessary to prepare for this in advance, and not when exchanges freeze funds and block withdrawals.

[Lucius]

It's hard that this topic can cause panic, unless someone thinks that it will be read by millions of those who invest in cryptocurrencies. Of course, this will not be the case, so it is just one more in a series of warnings to all those who think that crypto exchanges are some kind of banks where it is safe to store their coins.

All those who believe in it have serious problems with basic things, and I'm not sure that any non-custodial crypto wallet can help them in the sense that even in that case they won't mess something up. Knowledge first, and only then investment.

[cabron]

I don't believe anymore "We are fine!". "We had little exposure to FTX", "etc".

Little exposure is just a term to use so you won't panic. The warning is all there, it's all up to you if you are going to still keep your coins on changes.
The ones staking coins will have second thoughts about withdrawing them, the earnings are hard to resist and it's easier to dump also when the coins are in the exchanges.

I'm more afraid of using an old laptop. You best write down your seed and hide it where no one knows but you.

[OgNasty]

GBTC is almost reaching 50% discount to Bitcoin. There is speculation that the fund might have to liquidate to save Genesis.

Currently each share holds $15.19 worth of Bitcoin on the fund, however you can buy a share for $8.10 which means its currently trading at a 46.6% discount.

Basically its like buying bitcoin at $8800. A price not seen since Covid crash pretty much.

That fund has always looked very enticing, but with such high fees you’re almost making a bet on the fund being liquidated or approved to convert to an ETF before fees and investor fatigue craters your investment. I think a lot of people don’t understand that dynamic and invest based on the premium alone, which is why so many people have lost money with it. However, we are nearing a point where the fees are worth the risk in order to capture the premium while Bitcoin is cheap. I’ve never owned any GBTC, but I’m considering adding some to a retirement account.

[uneng]

It's advisable to cashout funds from every third party platforms and convert all your money to trustful currencies, but it's not possible for every investors, because we have our funds locked at investments' platforms and until the investment period ends, we can only pray that those platforms not have gotten involved with bankupted partners and to not get bankupted as well anytime soon.

For those who still haven't disabled the automatic investment lock option, it's better they do this right now, though.

[imamusma]

It's hard that this topic can cause panic, unless someone thinks that it will be read by millions of those who invest in cryptocurrencies. Of course, this will not be the case, so it is just one more in a series of warnings to all those who think that crypto exchanges are some kind of banks where it is safe to store their coins.

Positively you're right, I'm sure topics like this don't have the negative effect of causing panic. I'm sure crypto users on forum already know that exchanges are not the best depository of assets that will give them security, exchanges are places to trade so it's hard to believe the panic would set in as soon as they read a topic like this.

But actually unexpected things may happen due to media action, they can say that millions of bitcointalk users have to plan withdrawals on crypto exchanges. But that's just something that doesn't seem to worry too much.

[virasog]

I don't believe anymore "We are fine!". "We had little exposure to FTX", "etc".

We are not fine because we have given our funds to the centralized exchanges and unfortunately these exchanges and investment firms have broken our trust and we are never going to trust them again.

We are fine as long as we have crypto in decentralized wallets. We have the keys for our coins.
 
Also we are fine even if bitcoin is dumped a bit more because of these exchanges' crisis. It will give opportunity to get more bitcoins for cheap. It can be an opportunity for lifetime.

[lixer]

Fair enough. FTX has a multi billion dollar loss and I’m sure that all crypto company that exposed loss a lot of FTX bankruptcy. Avoiding all the exchange, DeFi and Blockchain involve is the best way to avoid loss when the company went down. Most of the FTX network are all centralized, It’s very risky to let your balance stay in there since a lot of money is loss due to SBF financial mismanagement.

Currently I’m on fiat because crypto even stablecoin might suffer huge dump when the general market enters the panic mode.

Not all exchanges but only centralized exchanges are the ones that we must avoid because issues that happened on FTX can possibly happen with them soon but we can continue using some of the DeFi and Blockhain platforms because situations like this where everyone is panicking is the best time to attack and accumulate more coins. If you have accumulated enough coins from the past then you can lay low for a while because the market is toxic right now and it can affect your decision making.

It's impossible for stable coins to dump unless if that stable coins are same with UST but we should properly pick a stable coin or the one which has a better reputation. It's not wrong to have some fiat but cryptos are still way better for some reason.

[adaseb]

From what I can tell. There is some article out on Twitter about 3AC borrowing BTC from Genesis and converting them to GBTC.

Do you remember in 2021 when you were offered almost 10% to lend your BTC? There was also huge premiums on futures BTC and ETH. Something like 2% a month.

So I think 3AC borrowed BTC from Genesis, converted to GBTC and were
Going to capture the premium but the premium disappeared. So now I think they owed a lot of money to Genesis and went bankrupt.

It was fine for the last few months because there was no bank run on Genesis. But after FTX collapsed people requested their crypto back from Gemini, which was held by Genesis and they don’t have enough to cover withdraws, hence they need to raise funds.

Basically contagion keeps spreading.

[Johnyz]

If you are holding any crypto on exchanges. Cold storage all that crypto. Get an old laptop or desktop you never use and use Electrum for BTC or use MyEtherWallet for ETH and ERC20 tokens. Don't connect that laptop to the internet and you got secure cold storage. If you have a hardware wallet then use that.

Heads up: Just buy a Ledger/Trezor hardware wallet. I don't think most people can confidently and properly secure a computer, even if it's not being used for daily personal usage.

This is the reason why I have to use my hard wallet now and generate new paraphrase to make sure that I’m safe from any hard. There’s a lot of FUD and panic with the exchanges now, many wants to get out as soon as possible and that is really ok. If you have hard wallet maximize it now, don’t wait for the worst to happen.

[South Park]

I guess there's nothing wrong with what the OP is trying to say.

If we have fiat, then withdraw and then hold, still the king though, so we might as well have some in this time.

But crypto, it's different, again, not your keys, not your coins and with the current crisis that we have right now, its better to have fully control of our crypto, have in a wallet that we have full custody and not on exchanges.

What the OP is saying is correct however this should be our standard behavior, it should not be necessary for the collapse of a major exchange for people to remember to keep their coins under their own care, after all we know that no matter how solid a financial institution may look they can always disappear very quickly under the right circumstances, and while this may seem unlikely to happen if you keep you coins in such an exchange all the time then it is way more likely you will end up becoming a victim of such crash, and this is exactly what happened to those which had their coins at the FTX exchange.

[AmoreJaz]

I guess there's nothing wrong with what the OP is trying to say.

If we have fiat, then withdraw and then hold, still the king though, so we might as well have some in this time.

But crypto, it's different, again, not your keys, not your coins and with the current crisis that we have right now, its better to have fully control of our crypto, have in a wallet that we have full custody and not on exchanges.

What the OP is saying is correct however this should be our standard behavior, it should not be necessary for the collapse of a major exchange for people to remember to keep their coins under their own care, after all we know that no matter how solid a financial institution may look they can always disappear very quickly under the right circumstances, and while this may seem unlikely to happen if you keep you coins in such an exchange all the time then it is way more likely you will end up becoming a victim of such crash, and this is exactly what happened to those which had their coins at the FTX exchange.

well, people need to be reminded with these basic things because some are getting too complacent in time. they will only check if things are in order when certain situations arise like this ftx drama. this will not be the last so yeah, make sure your assets are safe and secure under your full control. most of us know what to do but sometimes we neglect things when there are no current issues on the news.