5. Doge. Cause it’s a cool meme coin and Elon likes it
4. Matic. Cause it sounds close to magic.
3. ETH. Cause I’ve heard of it.
2. Cake. Cause everybody likes cake.
1. Bitcoin. Cause dino says it’s going to a million.
Crypto.com Halts Solana USDC and USDT Deposits, Withdrawals
Citing “recent industry events” in an email to users Wednesday, Crypto.com said “effective immediately” the platform would be “suspending deposits and withdrawals of USDC and USDT on the Solana Blockchain in the Crypto.com App and Exchange.”
And they are about the only way that paying for everyday things with cryptocurrency is currently viable. Actually transferring it is too slow and few businesses want to take on the currency risk of accepting it. So they act as an intermediary where they pay the business with fiat currency and then deduct the equivalent in cryptocurrency from your holdings with them. For instance, here's how you spend Bitcoin at Whole Foods:
so they are borrowing fiat against crypto transactions and charging a fee to facilitate it, so taking on a fair chunk of risk over the day or two it takes to sell off the crypto to pay for the debt, I'm guessing the fees are huge then?
Crypto.com Halts Solana USDC and USDT Deposits, Withdrawals
Citing “recent industry events” in an email to users Wednesday, Crypto.com said “effective immediately” the platform would be “suspending deposits and withdrawals of USDC and USDT on the Solana Blockchain in the Crypto.com App and Exchange.”
although it does pose a question, what's the point of the exchanges then?
Mostly it's for trading and for moving in and out of traditional banks.
Centralized exchanges are good at offering users things like stop-losses, puts, automated trade bots, leverage etc., but all of those things come with the risk of having the exchange holding all your tokens. And, they're easy to use. The don't require the user to understand any best practices for self-custody, which can be scary for people at the beginning.
Also, when you make a trade on a centralized exchange, you're not actually interacting with a blockchain at all. The trades are all just being conducted on their database, so the only transaction costs are the exchange's fees but not the blockchain transaction fees. For large sums of money that's not a huge advantage, but it's a big deal for small amounts of money that a lot of small retail traders are playing with.
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Binance started in China, with a Chinese-Canadian founder.
I sure as hell wasn't talking about Binance.
I would never trust a CEX that charges $500 for token recovery (though, I trust CEXs like Coinbase and Kraken that literally tell users to pound sand and don't even offer token recovery even less).
FTX is now being drained. Sounds like maybe an insider hack. Hundreds of millions of dollars worth already drained to an external wallet. It's just getting worse and worse.
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"If stupidity got us into this mess, then why can't it get us out?"
FTX is now being drained. Sounds like maybe an insider hack. Hundreds of millions of dollars worth already drained to an external wallet. It's just getting worse and worse.
This is what banks look like when they aren't regulated, that part isnt on crypto per say its just human nature, give someone access to several billion dollars and no oversight and they will take the money and walk away every time, of course crypto's lack of oversight means every single one of these exchanges will go sideways in time, its just human nature
This is what banks look like when they aren't regulated, that part isnt on crypto per say its just human nature, give someone access to several billion dollars and no oversight and they will take the money and walk away every time, of course crypto's lack of oversight means every single one of these exchanges will go sideways in time, its just human nature
so they are borrowing fiat against crypto transactions and charging a fee to facilitate it, so taking on a fair chunk of risk over the day or two it takes to sell off the crypto to pay for the debt, I'm guessing the fees are huge then?
Not necessarily. I don't know the exact details, but I imagine they're using liquidity pools that contain a currency that's pegged to the USD.
Basically, cryptocurrency holders who want to earn a return can put crypto into liquidity pools. Those funds are then used to provide liquidity to conversions (like a company who needs to convert crypto to USD to pay Whole Foods). In return, the people providing the liquidity get a cut of the fees. And because one of the currencies is tied to the USD, there's no real currency risk because the crypto can be converted to USD (or an equivalent at least) almost instantly.
So the company might charge merchants 1% and give half to the people providing liquidity. Obviously 0.5% isn't much, but that's just one transaction. If you're loaning your crypto to a liquidity pool and it gets used 20 times over in a year, you get a 10% yield.
Not necessarily. I don't know the exact details, but I imagine they're using liquidity pools that contain a currency that's pegged to the USD.
Basically, cryptocurrency holders who want to earn a return can put crypto into liquidity pools. Those funds are then used to provide liquidity to conversions (like a company who needs to convert crypto to USD to pay Whole Foods). In return, the people providing the liquidity get a cut of the fees. And because one of the currencies is tied to the USD, there's no real currency risk because the crypto can be converted to USD (or an equivalent at least) almost instantly.
So the company might charge merchants 1% and give half to the people providing liquidity. Obviously 0.5% isn't much, but that's just one transaction. If you're loaning your crypto to a liquidity pool and it gets used 20 times over in a year, you get a 10% yield.
I'm going to guess that all this works like clockwork as long as the Crypto is going up in value, its the massive drops that are causing the difficulty, all of a sudden theres a 1% loss between the order going in and the crypto being sold and the fiat repaid
FTX is now being drained. Sounds like maybe an insider hack. Hundreds of millions of dollars worth already drained to an external wallet. It's just getting worse and worse.
I read today that SBF built in ways to move out up to 10 Billion without his accounting staff being alerted.
He's now MIA.
Kevin O'Leary losing money might be a bit of good news to come out of all of this.
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I'm going to guess that all this works like clockwork as long as the Crypto is going up in value, its the massive drops that are causing the difficulty, all of a sudden theres a 1% loss between the order going in and the crypto being sold and the fiat repaid
The conversions into USD equivalent assets can happen basically instantly, so the currency risk during the transaction isn't much of an issue for the payment processor.
However, the entire thing is premised on the idea that people want to hold cryptocurrencies. If people think they're going to consistently go down in value, then tying them up into a pool to earn 10% (or whatever) a year is not an attractive proposition. At that point, yields would have to go way up (which would drive up the fees that processors would need to charge) and in extreme cases there just wouldn't be enough liquidity for it to work at all.
And that doesn't even get into the tax issues of the whole idea. My understanding is that any time you use cryptocurrency to buy something, it's a taxable event. If you're a normal person buying a cup of coffee a couple of times a year, not a big deal. But if you're spending crypto all the time and doing it by the book, trying to reconcile all of those transactions to figure out your adjusted cost base and proceeds of disposition would be a nightmare for your average person.
At least $1 billion of client funds missing at failed crypto firm FTX, sources say
A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.
The conversions into USD equivalent assets can happen basically instantly, so the currency risk during the transaction isn't much of an issue for the payment processor.
However, the entire thing is premised on the idea that people want to hold cryptocurrencies. If people think they're going to consistently go down in value, then tying them up into a pool to earn 10% (or whatever) a year is not an attractive proposition. At that point, yields would have to go way up (which would drive up the fees that processors would need to charge) and in extreme cases there just wouldn't be enough liquidity for it to work at all.
And that doesn't even get into the tax issues of the whole idea. My understanding is that any time you use cryptocurrency to buy something, it's a taxable event. If you're a normal person buying a cup of coffee a couple of times a year, not a big deal. But if you're spending crypto all the time and doing it by the book, trying to reconcile all of those transactions to figure out your adjusted cost base and proceeds of disposition would be a nightmare for your average person.
That doesn't make sense, you have to sell the crypto in the same way you have to sell a stock in order to cash out, that is never instant, the exchange might take on the risk and so it would seem instant to a seller but the exchange is still offering up bitcoin for sale in a bear market where the price is dropping like a stone, they have enough crypto to move they might not be able to find a buyer
