Another not your key not your coin story

[andyfibe]

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 is also worth following the latest information about cryptocurrencies on trusted sources, such as Kurs.com.ua, where you can find useful articles and recommendations on safe methods of working with cryptocurrencies.

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.

No matter how many times they are warned, people will still store coins in exchanges until they are 'bitten'. That seems to be the eternal lesson.

[Catenaccio]

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.

Bankrun is terrible with any company and in 2022, there were bankruns with Terra, FTX exchange, and some traditional banks in the USA and in European countries too.

It is really hard to be unaffected by a bankrun, if your company does not have safe treasury management including customer money deposited to your platform. If you have bad capital and treasury management, risk is high enough to trigger a collapse by a bankrun from customers.

If they actually reopen withdrawals, a bankrun will happen and any person has money there, must be very hurry with withdrawal request, and pray that they will luckily be approved for withdrawal.

[EluguHcman]

This is exactly how the Ponzi scheme MMM started and they ends up scampering with the platform Investors funds.
Here I am not saying the Mudrex exchange in question here is a scam but the attitude of this update is not trustworthy which means the platform would make crypto holders on the platform be sceptic over it all.

I have read through the news and it is expected that the exchange should had carried on it platforms upgrading activities while the  P2P feature stays suspended on the few times of the processes.
This is some what other exchanges like Binance, Bybit and Bitget has been taking this process so it is really worrisome having one as the Mudrex act different.

Now even if the exchange does not mean negative thoughts, they are definitely going to lost customers because in an exchange that you don't hold your key phrases. The coins in your wallets alternatively is not yours.

That is why non custodial wallets are better reliable and recommended for safe and reliable control of personal funds.

[Nheer]

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.

It’s really sad hearing such stories but the truth is that it’s difficult to do away with centralized exchanges completely despite knowing how dangerous it is to keep our assets with them. They provide some services that we need and that way it is difficult to do away with them completely and one way or the other we might be in need of their services like P2P you mentioned.

It’s unsafe to make use of just any exchange you come across so it is better to use reputable exchanges that are well established, it doesn’t guarantee total safety but reduces the risk of being scammed in this manner. Exchanges are not recommendable for storing assets for investment purposes especially for holding for a long duration, you should only use it for trading purposes instead and only send in amounts for trading to avoid stories like this.

I just hope affected people will be able to recover their assets and it’s not a scam tactic adopted by the owners of the exchange.