FTX Liquidity Issue, Binance Consolidates Crypto Monopoly
Looks like FTX is in deep trouble, and Binance CZ comes to rescue.
This sounds like the best outcome, but the risk is pushed into the future.
How do you run an exchange into “liquidity” problem? Are the exchanges doing fractional reserve banking and lending your crypto out for more profit and taking on excessive risks? If you keep cryptos on the exchanges, the exchange is making money on your crypto but if anything goes wrong, you get the haircut.
It is very obvious exchanges don’t have the coins they said they have, when are we going to see “bank run” on all crypto exchanges?
As Binance once again expands, the risk is getting more and more concentrated and one entity is in the position to manipulate the market. MTGOX was the biggest once upon a time, the rest is history.
Always remember, exchanges are not 100% secure. Not your keys, not your cryptos.