Another not your key not your coin story

[Chikito]

it's okay to lose a few fees to safe our crypto on our wallet rather than panic when store in the exchange.

that good also helps miners to maintain the network.

[Just Say]

This has been the funniest not your key not your coin story I have ever heard. It is about an Indian exchange Mudrex that stopped crypto withdrawal and told people that withdrawal will resume on the 28th of January. That is 2 weeks and 3 days before their customers can be able to withdraw their money. That will also be if nothing has happened to the exchange.

But someone told people should convert their coins to Indian rupee and withdraw Indian rupee. I do not know if Indians that are using the exchange will be able to withdraw to fiat.

https://cointelegraph.com/news/indian-crypto-exchange-mudrex-halts-crypto-withdrawals

This is why custodial wallets should not be used, because that wallet is controlled by a third party. If they suddenly stop withdrawing crypto, then users will have nothing to do. So no matter how safe you think it is to keep your coins there, they will not actually be safe. By custodial wallet we mean different types of exchanges like Binance, Kucoin and many more. Since it is said that Not your keys not your coins, So we should use wallets that are under our control only. Exchanges should only be used for P2P transactions and use noncustodial wallets to securely store bitcoins and other cryptocurrencies. We heard almost a similar news a few days ago where a person lost 100 bitcoins after losing his wallet seed phrase.

[Futurexxx]

This has been the funniest not your key not your coin story I have ever heard. It is about an Indian exchange Mudrex that stopped crypto withdrawal and told people that withdrawal will resume on the 28th of January. That is 2 weeks and 3 days before their customers can be able to withdraw their money. That will also be if nothing has happened to the exchange.

But someone told people should convert their coins to Indian rupee and withdraw Indian rupee. I do not know if Indians that are using the exchange will be able to withdraw to fiat.

https://cointelegraph.com/news/indian-crypto-exchange-mudrex-halts-crypto-withdrawals

It is very bad that upon how this; not your key, not your coin is being preached daily in this forum, people are still falling prey to it.
Now just look at this bullshit that just took place, it is either their money has been cornered into something else or it has been stolen by someone or group of people internally, but all this is very much avoidable if people stop storing their asset in these exchanges.
Let's not be surprised that we might gets to 28th and they came up with different stories altogether, so the right thing to do is to avoid getting into such mess in the first place.

[Catenaccio]

It is very bad that upon how this; not your key, not your coin is being preached daily in this forum, people are still falling prey to it.
Now just look at this bullshit that just took place, it is either their money has been cornered into something else or it has been stolen by someone or group of people internally, but all this is very much avoidable if people stop storing their asset in these exchanges.
Let's not be surprised that we might gets to 28th and they came up with different stories altogether, so the right thing to do is to avoid getting into such mess in the first place.

Warnings about it are everywhere, not only in Bitcoin forum, but people are victims from this bad practice are everywhere too. I don't want anyone to lose their bitcoin by bad practice with their bitcoin storage, wallets, and backups. But if they already lost their bitcoins, it's fact and can not be changed as Bitcoin transactions are irreversible.

Lost bitcoins are gift for everyone who don't lose bitcoins. Satoshi Nakamoto told us like this years ago.

Lost coins only make everyone else's coins worth slightly more.  Think of it as a donation to everyone.

[Peanutswar]

Sometimes restriction of the exchange depends on the coin but making it a whole withdrawal will become frustration to the investors or people using their platform, its the story that if you don't use your coins casually you don't need to store it into an exchange because they aren't a wallet they are just a platform exchange your coin into other coin and people becomes more confident to store their assets right there not until these kind of problem might come up. Use your exchange for casual trade or short term, use your wallet for long term or hodling.

[albon]

Sometimes restriction of the exchange depends on the coin but making it a whole withdrawal will become frustration to the investors or people using their platform, its the story that if you don't use your coins casually you don't need to store it into an exchange because they aren't a wallet they are just a platform exchange your coin into other coin and people becomes more confident to store their assets right there not until these kind of problem might come up. Use your exchange for casual trade or short term, use your wallet for long term or hodling.

The biggest disaster is if an exchange goes bankrupt or gets hacked, and we have seen many real examples in the past, also stopping withdrawals completelly, freezing assets, requesting a source of funds, or placing restrictions on depositing for certain currencies, etc., are all the actions that they can take against their customers... These actions are countless and can cause clients to be dissatisfied and frustrated, and they are not liable because clients have agreed to the terms of use of their service and their condiitions from the beginning.

I completely agree. The biggest mistake is considering the exchange to be a secure place to store assets, as they control everything, so we should not put huge amounts in it or actually use it for long-term investments... It is undoubtedly necessary to carefully choose the CEX platform for trading by reviewing their ToS before creating an account, checking their fee rate, and the platform's security measures and precautions in case of issues and the responsiveness of their customer service.

[RockBell]

Sometimes restriction of the exchange depends on the coin but making it a whole withdrawal will become frustration to the investors or people using their platform, its the story that if you don't use your coins casually you don't need to store it into an exchange because they aren't a wallet they are just a platform exchange your coin into other coin and people becomes more confident to store their assets right there not until these kind of problem might come up. Use your exchange for casual trade or short term, use your wallet for long term or hodling.

And this is a clear reason why you don't put your trust in exchanges because it been a centralized but when you keep your coin a wallet it saves you a lot of stress and risk because there is a lot of risk thay saving you money in an exachange comes with, with this kind of action just discourages everyone from trusting exchanges because now that they have stopped all withdrawal what of people that have emergency how do they take care of it when they don't have assess to there funds, and like some questions that are asked if they can have access of even turn it to fiat if they have access to it then there problem is half solved.

Let's even hope is not what we think because if it is something we think then there will be any problem because if they don't resume then the problem is going to be more than what we think but we don't even expect it to get to that extent but eventually if it does then there is no way that it won't cause people pain but the proble now is thay people we never learn if not is not today that they have been saying it's not your keys not your coin, this like this is what we are suppose to draw our attention too.

[Yousider]

This has been the funniest not your key not your coin story I have ever heard. It is about an Indian exchange Mudrex that stopped crypto withdrawal and told people that withdrawal will resume on the 28th of January. That is 2 weeks and 3 days before their customers can be able to withdraw their money. That will also be if nothing has happened to the exchange.

But someone told people should convert their coins to Indian rupee and withdraw Indian rupee. I do not know if Indians that are using the exchange will be able to withdraw to fiat.

https://cointelegraph.com/news/indian-crypto-exchange-mudrex-halts-crypto-withdrawals

I check in internet, it exchange many issue and negative feedback. I think, check for first before you put money in there my friend

[Pmalek]

It's always sad to hear new drama that centralized exchanges create for the users who gave them control of their money. Sadly, it's also the best way people will learn. Giving them advice and suggestions doesn't help. Only after they get into trouble or suffer a financial loss will they consider better ways to handle their money.

I would be curious to know if the exchange allows its customers to swap their coins for fiat and withdraw that. If not, they are already lying about only halting crypto withdrawals when in fact users can't withdraw any assets at all.

[batang_bitcoin]

I can't see which is the funny part on it when the exchange have told that they'll be back and some people's fund are stuck in there. But mostly shouldn't trust centralized exchanges anymore when many of you are keeping your funds in there believing that it's safe. It's safe in a sense that they're a registered exchange, a trademark and a business. But if it's about the actual way of keeping our funds safe, it shouldn't be on these exchanges and we have seen in the past how many exchanges got into trouble and many customers have been affected.

[Rockstarguy]

This is not new, check out my thread: Mudrex Exchange Withdrawal Issue

This is going on for months and now they just hide under regulations for holding funds but there's absolutely no reason for them to. Bybit is actually stopping their service in India but they allowing users to withdraw and that's the difference between legit and shady exchange.

You can convert but can't withdraw to bank account that's the beauty.

That is one thing about exchange, it can fail at anytime and their is no need to rely on any exchange to invest assets on it because anything can happen. We have heard so many different stories about exchanges and the funny thing is that victims from all these affected exchange never expected such an occurrence to happen. It is very important to take note never to put high hopes on any exchange,  their is no safe exchange, anything can happen at anytime without the awareness of users investing the their asset on exchange.

Exchange is not safe to invest asset and people forget the main essence of an exchange is just to buy and sell and not the right place to hodl asset for long-term investment.

[Catenaccio]

That is one thing about exchange, it can fail at anytime and their is no need to rely on any exchange to invest assets on it because anything can happen.

We invest money in Bitcoin or altcoins, not in any centralized exchange. Exception is if you invest your money in their exchange token, but if not, you don't invest in an centralized exchange. The rest is where you store your bitcoin or altcoins, on that centralized exchange where you bought your bitcoin or altcoin. It's risky and not recommended. A better and also safer place to store your bitcoin or altcoins, is your non custodial wallets.

We have heard so many different stories about exchanges and the funny thing is that victims from all these affected exchange never expected such an occurrence to happen.

Not Your Keys, Not Your Crypto: What to Know Before the Next FTX-type Meltdown. Similar stories with Terra, and many collapsed DeFi platforms in 2022.

[Coyster]

The thing now is, even if they allow withdrawals on January 28, it might spark a "bank run" which could lead to a complete collapse of the exchange. I say so because people are already pensive and worried about their money, and if they are able to withdraw it, they might want to move it to another platform, and if it happens in numbers, we know the outcome.

That being said, not your keys, not your coins is more or less cliche right now, it does not matter how many times we say it, whenever situations like this happen, you see that many people use exchanges as wallets.

[moneystery]

there is something suspicious about the exchange, and I feel that the user's assets are no longer safe.

but that's how it is after people deposit their bitcoins on a centralized exchange, then they have no full control over their assets, meaning they have no choice but to accept the risk that at any time the exchange can refuse to withdraw or worse go bankrupt _{and that will cause users to lose all the assets they have} ... and that's why non-custodial wallets are still the best place for holders to be able to manage and hold their wallets. no matter what happens, as long as the holder has access to their non-custodial wallet, then they can do anything to the assets they have, whether to transfer or just hold the assets.

[Mia Chloe]

The thing now is, even if they allow withdrawals on January 28, it might spark a "bank run" which could lead to a complete collapse of the exchange. I say so because people are already pensive and worried about their money, and if they are able to withdraw it, they might want to move it to another platform, and if it happens in numbers, we know the outcome.

Liquidation is one of the biggest problems that brings most firms to their knees be it an exchange or another firm in a different ecosystem. The question is how would sudden liquidation be covered up? Take an exchange in such a situation owing multiple users a compiled amount, if they take the decision of borrowing from a bank (which the chances are thin based on collateral), the end up switching owed liquidity from their customers to the bank.
There is a high chance they file up for bankruptcy and in the end those who stored their coins there lose them eventually. This is one of the major reasons  you need to be careful when choosing exchanges.

[Coyster]

The question is how would sudden liquidation be covered up? Take an exchange in such a situation owing multiple users a compiled amount, if they take the decision of borrowing from a bank (which the chances are thin based on collateral), the end up switching owed liquidity from their customers to the bank.
There is a high chance they file up for bankruptcy and in the end those who stored their coins there lose them eventually. This is one of the major reasons  you need to be careful when choosing exchanges.

Right now they claim they are not insolvent and that they halted withdrawals only because of "compliance suite upgrade". But many people in the crypto community, including me, do not buy that story. That said, when withdrawals start going through again, quite a lot of their users might be scared to use the platform again, and they might pull out, which could put the exchange in danger of bankruptcy, if they are not there already.

[Abu-Naim]

This has been the funniest not your key not your coin story I have ever heard. It is about an Indian exchange Mudrex that stopped crypto withdrawal and told people that withdrawal will resume on the 28th of January. That is 2 weeks and 3 days before their customers can be able to withdraw their money. That will also be if nothing has happened to the exchange.

But someone told people should convert their coins to Indian rupee and withdraw Indian rupee. I do not know if Indians that are using the exchange will be able to withdraw to fiat.

https://cointelegraph.com/news/indian-crypto-exchange-mudrex-halts-crypto-withdrawals

Centralized exchanges is very bad but sometimes they have advantages especially if they are supporting p2p transactions where some users will convert their crypto to their local currency direct.

I always recommend using reputable and globally known centralized exchanges to avoid such things because even if it happens it might be minimal and might have solution since the owners are well known, the government can fight for their customers, but that’s also not certain because these exchanges can be dramatic sometimes.

I will advice us to always use exchanges for their purposes which is just for trading both spot and future trading, we should always send our money out to our personal wallets once we are done trading or marketing in the centralized exchange because apart from our assets that are not safe, our details we submitted during kyc is also not safe with them.

[Mia Chloe]

Right now they claim they are not insolvent and that they halted withdrawals only because of "compliance suite upgrade". But many people in the crypto community, including me, do not buy that story. That said, when withdrawals start going through again, quite a lot of their users might be scared to use the platform again, and they might pull out, which could put the exchange in danger of bankruptcy, if they are not there already.

The fact is this whole stuff and gist wouldn't actually go viral if they are not at the verge of bankruptcy already. It's just a matter of time before the effects of the whole problem surfices. The most retarding thing about the whole thing is that they actually would end up paying the price at the detriment of their users and customers.
The funniest thing about the whole story is even after this there are people that will still store their coins on a centrallised exchange all in the name of it's safer. I think it's actually high time people saw the bigger picture about what privacy and ownership of coin is all about.

[JiiBs]

I am familiar with the exchange, have heard of it a couple of times when doing some research works on exchanges but, its peculiarity to India and Indians doesn’t make it stand out as what I should check out.

When you use an exchange to save your coins, then you should be ready for everything. Imagine should you have stipulated use for the coins in a particular time frame, it just doesn’t play out. This is most definitely a sign that the exchange doesn’t want users to withdraw their coins. We just finished from the festivities of new year and many would want to trade some coins to fit in some expenses but nope, it’s scheduled for 28th January, end of the month with hopes that, the working population would have been paid their salaries.

it's okay to lose a few fees to safe our crypto on our wallet rather than panic when store in the exchange.

that good also helps miners to maintain the network.

Something I’m devoted to doing rather than become a victim to exchanges.

[hd49728]

The funniest thing about the whole story is even after this there are people that will still store their coins on a centrallised exchange all in the name of it's safer. I think it's actually high time people saw the bigger picture about what privacy and ownership of coin is all about.

It's not a first time ever a centralized exchange has problem with operation and user withdrawal. Many exchanges died, collapsed, scammed in the past, and people still don't want to learn this lesson and change their practice with their coins.

It's true with senior and experienced people in this market, and with newbies, it's more serious problems practically.

I agree that such cases are very helpful for people to feel fearful and change their practice in bitcoin storage, but it's not the first time.

Choose open source, self custodial wallets for storage. Remember to backup wallet, test backup to make sure it is usable for recovery.