User protection funds, Should more cex adopt this culture?

[stompix]

Apparently, the funds are self-funded and designed to safeguard users' assets against hacks, harsh market conditions, etc.

What happens if the safe funds are hacked?
Because if you safe guard your safe fund with the same tech your guarding your customers funds then they are just as easily to hack, right?

According to Coinmarketcap's data on December 7, Bitget's total reserves exceeded $1.7 billion,~reaffirming its dedication to comprehensive transparency through a total reserve ratio of 171%~Established in 2018, Bitget is the world's leading cryptocurrency exchange and web3 company. Serving over 20 million users in 100+ countries and regions

So 20 million users, that makes and average of $70 per user in reserves, and since those are ~171% of user funds means the average users there has $50 deposited.LoL...how did they even manage to get that? One user putting in $1000 means 20 need to have 1 cent!

The SEC crackdown and compliance issues only apply to CEXs that want to establish business in the US, but outside the US CEX is free and will not be pressured by the SEC as experienced by Binance and other exchanges.

Oh yeah, the evil SEC and regulations, you know what regulations the SEC wants to impose? The same as Japan!
And speaking of Japan, you know which FTX clients have their funds safe? The ones in Japan! You know which exchange fled Japan because they didn't want to separate the clients funds from their other business? Yeah, Binance!

Yeah, keep cheering for exchnges that are free to do as they please, we know how this ends!

The SEC's action will not affect the Exchange for the whole, they have a limited working area only in the US and see how currently, there is no major impact after the SEC sued Binance, instead Bitcoin today reached $40k++.

That's because CZ and Binance are like cancer cells of course things are better with them turning to nothingness!

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[shawonngp]

Apparently, the funds are self-funded and designed to safeguard users' assets against hacks, harsh market conditions, etc. In my opinion, this is a commendable practice by the CEX and will undoubtedly instill confidence in users when using the platform in the future.

Perhaps other platforms should adopt this culture moving forward?

Although this is just another shill by Bitget to highlight one of their feature but I guess already have one of this feature and in fact started this even before Bitget. I’m not sure if other exchange done this but Bitget is not the one who started it so stop sharing like Bitget started it.

Besides I’m not sure if that funds is really secured if they are still the one holding it and not in the care of an escrow which will act once the condition met because this protection funds can be voided anytime once the CEX itself already taken the fall.

I did not heard before saw this op about Bitget exchange protection funds for their users safety. Definitely it's a good initiative to build users trust, As far as i know Binance is the first exchange they implement SAFU worth of 1 billion dollars, Then several good exchanges started it.

[justdimin]

Is Binance's SAFU the same with this protection fund of Bitget? Yes, it could just be a shill to make it look good but here's my tea on this one.

It's not going to change the fact that CEX remains as a CEX even with these features. As long as they're not providing its customers the custody to own over the coins they deposit, whether there are insurances or protection funds, nothing will change that fact.

It might be a good feature but do you think that it's good to rely on it because they have that sort of protection? The best protection is you alone to hold that key of your funds.

User protection fund is good, it at least gives their customers some assurance that their funs is secured, no matter what happens. Assurances like this are necessitated by the fact that people are loosing confidence in exchanges, even the well established ones, due to obvious observations that have been happening lately.

Truth remains that even with these features, as you've observed, as long as their customers do not have control over their coins in the exchanges, then there's no full assurance, in the case of the exchange shutting down.

This is the answer of the CEX to the famous phrase: "Not your keys not your coins", that is always being reminded to all of the crypto users. I think CEX are already annoyed with that because they think they are mainly the ones who being are targeted for that. But other than that, it is a must do, also because of the reason that you have said earlier or to the hacking, scamming, and the sueing of the regulators.

For it to be more effective or to give us more assurance, maybe the exchange should prepare a kind of legal document that we will be signed. I think it's also possible that the key to the lock funds will be hold by multiple trusted people. That should lessen the chance for a single people to ran away with it.

[OcTradism]

nswer of the CEX to the famous phrase: "Not your keys not your coins", that is always being reminded to all of the crypto users. I think CEX are already annoyed with that because they think they are mainly the ones who being are targeted for that. But other than that, it is a must do, also because of the reason that you have said earlier or to the hacking, scamming, and the sueing of the regulators.

For it to be more effective or to give us more assurance, maybe the exchange should prepare a kind of legal document that we will be signed. I think it's also possible that the key to the lock funds will be hold by multiple trusted people. That should lessen the chance for a single people to ran away with it.

They can give reports on Proof of Reserves to their exchange users. With more regulations, centralized exchanges will be regulated more strictly and they will have to be more transparent with their business treasury and how they manage funds of customers.

With more laws, more guides from governments, regulators, I believe Audits companies will join this cryptocurrency market and they will accept to make audits for centralized exchanges. We will have those audits reports in future that I hope will help to reduce risk of shady managements on customers money.

With reports or with audits, it's always in my mind "Not your keys, not your bitcoins".

Reminder: do not keep your money in online accounts

[Bushdark]

Apparently, the funds are self-funded and designed to safeguard users' assets against hacks, harsh market conditions, etc. In my opinion, this is a commendable practice by the CEX and will undoubtedly instill confidence in users when using the platform in the future.

Perhaps other platforms should adopt this culture moving forward?

Although this is just another shill by Bitget to highlight one of their feature but I guess already have one of this feature and in fact started this even before Bitget. I’m not sure if other exchange done this but Bitget is not the one who started it so stop sharing like Bitget started it.

Besides I’m not sure if that funds is really secured if they are still the one holding it and not in the care of an escrow which will act once the condition met because this protection funds can be voided anytime once the CEX itself already taken the fall.

I did not heard before saw this op about Bitget exchange protection funds for their users safety. Definitely it's a good initiative to build users trust, As far as i know Binance is the first exchange they implement SAFU worth of 1 billion dollars, Then several good exchanges started it.

This method of ensuring user's fund safety is what should be enforced by the government to force many cex exchanges to adopt so that there won't be continuous complain of crashing exchange or exchanges getting hacked without a way for users to get their funds back.
There are things the government need to do to make sure that centralized exchanges relax funds to users after getting bankrupt or crashing to enable users to get their funds if not full but part of their funds back.