Crypto platforms melting down is real

[mindrust]

Platforms need liquidity to continue their operations and that’s why they offer you interest on your deposits. (Especially for usdt and similar stable coins) That’s also a trap. I do keep some money on an exchange (binance in this case) and collect interest but amount-wise it is nowhere near being dangerous to me.

It would still hurt me if binance went down and I lost money there but I wouldn’t lose all my life savings, u know what I mean? It would be a small accident only. As long as you make allocation decisions based on risk levels, you can’t make huge mistakes.

[Darker45]

Centralized platforms are a ticking bomb, in a way. And their explosion could be triggered in more ways than one. A hack, an inside job, or even the CEO itself could cause everything to crumble to the ground.

Interestingly, I don't believe that lessons will be fully learned. Also, it's simply impossible for similar incidents in history not to happen again. In the first place, is it even possible to completely avoid them? I don't think so. Could we fully do away with Bitcoin custodians, for example?

[Alpha Marine]

Exchanges and other centralized platforms will do everything they can to make you feel that your funds are safe. They will tell you that your funds are Safu and you don't have anything to worry about.

I always find it funny that people believe this. What else is the exchange going to say? That your funds are not safe? That they don't use your personal details for other things? If it were me, too, I wouldn't tell you that your coins are vulnerable.
A tech company CEO will assure people that their privacy is respected or that the safety of their money/crypto coins is completely safe, and people believe them. That is exactly what he is expected to say. He wants us to trust them with our money, so he will definitely say something that will make us trust them.

Obviously, we can't stay away from centralised organisations completely, but we should not be deluded into thinking we can trust them completely with our stuff.

[uneng]

For those who are serious about investing in Bitcoin, it's a must to acquire a hardware wallet, so they can store their coins safely. Although it's not cheap, it's part of the invesmtent, and can't be neglected.

I've been using such third party platforms to invest my money along the years, and I've been scammed by Celsius. From that moment on, I got more careful and suspicious about those services, so I changed my strategy. It's too stressful to keep money on someone else's hands without any guarantees. You never know if the money will be still disponible tomorrow.

Once you move your funds to your own wallet, you feel in peace.

[Z-tight]

For those who are serious about investing in Bitcoin, it's a must to acquire a hardware wallet, so they can store their coins safely. Although it's not cheap, it's part of the invesmtent, and can't be neglected.

A hardware wallet is not so expensive either, especially when you are holding a large amount in BTC. If you own thousands of dollars in BTC, you cannot seriously consider a hardware wallet to be expensive and the wise thing to do is to spend a few dollars to protect your stash.

Once you move your funds to your own wallet, you feel in peace.

Yeah i agree. Self custody is the only way one should store their BTC.

[aioc]

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

You can't trust any exchange right now because of past events; those who failed to learn from them are bound to repeat them.
I never left any funds, even if there are bonuses the exchange offers, like staking my coins for profit.
The profit is not worth the risks, even if they guarantee that your funds are safe.
Part of protecting your coins is not trusting this to a third party; an exchange is a risky third party.

[davis196]

Let's not forget that in every cycle there is always that once "trusted" platform that takes the fall, they implodes when we least expected. And yet many people keeps saying this same word

"It will never happen to me."

I was a victim of QuadrigaCX myself in 2019 and there are many that have went down in similar ways.

Like FTX, Celsius, BlockFi, Mt.Gox.

What has this thought me? That losing your crypto in such manner teaches that "Not your keys, not your coins."
This is not something to joke with, I hope readers will listen and take cautious steps to avoid such thing happening to them.

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

I thought that you are going to discuss crypto platforms, which are about to collapse in the future. There's no point reminding us about FTX, Mt.Gox or BlockFi. The year is 2025 and 99% of the crypto users know about the risks involved with centralized crypto exchanges.
Do you have any suggestions and ideas about the next big crypto platform implosion? Maybe Binance or why not Kraken?
I don't use centralized crypto exchanges so I don't care. Perhaps a crypto price crash caused by a big platform going bankrupt won't be that bad after all. This would be a great time to buy the dip and accumulate more BTC.

[Z-tight]

I thought that you are going to discuss crypto platforms, which are about to collapse in the future.

How can one be privy to that information, it is not possible. Any centralized exchange can collapse, none is immune to it, even the big ones. In the last couple of months, a lot of centralized exchanges have been hacked and funds stolen from them, but they still manage to continue operating. Like we all know, not all hacks lead to a total collapse, even Bybit recovered from one of the biggest hacks in crypto history.

So my point is there is no need to even speculate on which will collapse next, it is much better if people just believe that any exchange can collapse, even the ones they use. That would serve as a warning to remember for them.

[joniboini]

Speaking of crypto hack, I remember reading a rumour that a big exchange is going to implode because they have no liquidity to serve users' withdrawal. I think this happened a few months ago. I remember reading it on Twitter. I can't remember the exchange name, probably MEXC or something else. It's hard to judge the reliability because the info comes down to "trust me, this is important". Then again, it's impossible to know exactly how an exchange is doing unless you're doing insider trading.