More platforms will bite the dust?

[o_e_l_e_o]

Actually, I'm wondering about how the notoriously scammy, shittier platforms endure the bear seasons while the more professional and (over?) hyped ones fall as flies, is almost funny

Well, there have been plenty of smaller exchanges which have gone bankrupt or exit scammed over the last few months and years as well, they just don't make the news nearly as much as when an exchange like FTX does it. But every exchange out there, regardless of size or regulations, is just one bank run away from declaring insolvency and taking all deposits with them. And as we've seen repeatedly over the last few months, when that happens regular uses are unlikely to get back a single satoshi of their money.

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[Darker45]

Actually, I'm wondering about how the notoriously scammy, shittier platforms endure the bear seasons while the more professional and (over?) hyped ones fall as flies, is almost funny

I have also wondered about this actually. It somehow amuses me. I can remember many years ago that the exchanges to be avoided like the plague are the likes of YoBit and HitBTC. Their brands are almost openly equated with scam. But look how they've survived all the things that caused great exchanges and other too-big-to-fail platforms to lay off employees and even file bankruptcies. It's funny how it seems the last laugh is theirs.

[bbc.reporter]

Is there a bigger chance than expected that it will be one of the next exchanges to bite the dust or is it still reasonably safe if compared to other exchanges that might bite the dust?

Go back a year and everyone though Celsius, Voyager, FTX were some of the most well regulated and least risky exchanges. And look at where we are now.

Hehe correct! It would be much safer to assume that Binance is in more danger than expected of insolvency after the outflows and thd mass liquidations that occured in the exchange if you describe it that way. BUSD is also not collaterized 100% during certain times.

In any case, I also remember creating the thread asking if FTX would bite the dust and many of us assumed that it was not in trouble, almost making it a silly question. We should certainly not make another similar error again.

[o_e_l_e_o]

I have also wondered about this actually. It somehow amuses me. I can remember many years ago that the exchanges to be avoided like the plague are the likes of YoBit and HitBTC. Their brands are almost openly equated with scam. But look how they've survived all the things that caused great exchanges and other too-big-to-fail platforms to lay off employees and even file bankruptcies. It's funny how it seems the last laugh is theirs.

Because YoBit is an outright scam. They don't need to worry about bank runs or anything like that, because they are quite happy to just shut down withdrawals and out right steal the coins of their users. Not to mention that the majority of shitcoins you can trade on YoBit don't actually have a blockchain at all and are created by YoBit only to separate idiots from their bitcoin. It doesn't matter if someone wants to withdraw 10 trillion MadeUpYoBitCoinNumber14, since YoBit can just create that out of thin air whenever they need.

The most surprising thing here is how they manage to continue to attract a steady stream of newbies and idiots to keep them running, even during a bear market. Although their outgoings will be very minimal since they don't need to pay any support staff or indeed process any withdrawals.

[virasog]

There are people in social media that have warned to be cautious with platforms that offer high APY and those platforms that have laid off employees from jobs in their companies.

Kraken, Coinbase, Crypto.com and Bybit did the biggest layoffs for exchanges this year according to the data in this spreadsheet which was created by Wublockchain.

This is nothing to do with the cryptocurrencies and i will not say that crypto is responsible for this layoff of employees from the companies. We are in a global recession and many companies (both crypto related and non-crypto) are reducing their expenses and making sure that there is no extra manpower.

I think this trend will continue throughout the global recession. We may see more such layoff news in near future from different
companies.

[Elpeor00]

I have also wondered about this actually. It somehow amuses me. I can remember many years ago that the exchanges to be avoided like the plague are the likes of YoBit and HitBTC. Their brands are almost openly equated with scam. But look how they've survived all the things that caused great exchanges and other too-big-to-fail platforms to lay off employees and even file bankruptcies. It's funny how it seems the last laugh is theirs.

Because YoBit is an outright scam. They don't need to worry about bank runs or anything like that, because they are quite happy to just shut down withdrawals and out right steal the coins of their users. Not to mention that the majority of shitcoins you can trade on YoBit don't actually have a blockchain at all and are created by YoBit only to separate idiots from their bitcoin. It doesn't matter if someone wants to withdraw 10 trillion MadeUpYoBitCoinNumber14, since YoBit can just create that out of thin air whenever they need.

The most surprising thing here is how they manage to continue to attract a steady stream of newbies and idiots to keep them running, even during a bear market. Although their outgoings will be very minimal since they don't need to pay any support staff or indeed process any withdrawals.

This, yobit has been listing and promoting self-proclaimed Ponzi schemes and "cryptocurrencies" without a blockchain for like a decade.

Then they start hosting their own ponzis, branding them as "rise only markets", "investbox" and others, at this point just plainly steal the coins will be an improvement. Yet people still fall for it, even when the sheer number of pyramid schemes available as tabs in the main page screams scam