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QuadrigaCX Allegedly Traded Against Its Own Customers Without Assets To Back Them (ambcrypto.com)
geoskd writes: QuadrigaCX, the Canadian crypto exchange that made news recently with the passing of its CEO, Gerald Cotten, has been alleged to have been buying cryptocurrency from traders on its platform without having actual assets to perform the transactions. The transactions showed credit to the customers accounts, but when the customer tried to withdraw cash, they had to wait until other customers deposited cash before the funds became available. There is also an accusation that this behavior exists at many other crypto exchanges as well. Perhaps it is time to take a fresh look at Tether...
No. Just stop. Really. Just stop.
I don't respond to AC's.
It amazes me that this Ponzi scheme is still ongoing. There's ample evidence of wash trading at all the major exchanges.
One of my favorite quotes on this is from the NYU economics professor who was famous for identifying the housing bubble, who also called out the crypto currency bubble in 2017, is asked again what he thinks of the crypto movement:
I'm beginning to think that cryptocurrency is some of the best value you can get for your money. At least in terms of entertainment for the people who didn't invest in any of it. Maybe it will all eventually settle down and turn into a respectable currency, but right now you can't find a bigger shit show anywhere and it's utterly engrossing. We should at least require that all cryptocurrency algorithms do something useful like protein folding so that at least some good comes out of all of this idiocy.
If you try to sell a gift card to Cardpool for Amazon credit when they're all out of Amazon gift cards, they will delay processing your order for an eternity (most likely, due to waiting for people to sell them some unwanted Amazon gift cards).
The internet is full of shady dealings.
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DRM is like antifreeze, to the MPAA/RIAA it's sweet, to the consumers it's poison.
Deregulation and lack of oversight means the majority will get screwed over while a few might ... might just get rich. Everyone thinks they are one of the few, not realizing that if they haven't set the terms, written the rules, or done the time to build something, it's only a matter of time before they fall into the crosshairs of fate, criminals intent on finding out where they live, both, or far far worse.
Greed turns everyone into naive little boys and girls. The more there is to gain, the more they thinks they have a sure thing going, the greedier they get. And it is in their fall that others others become truly rich.
Thank everyone for buying into cryptocurrency! Their ruination will give rise to a better, greater world and be the better for it.
Except banks have minimal capital requirements that prevent a depositor from having to wait for their cash. So again there is a proven mechanism in the traditional financial market that these new currencies ignore. And yes bank runs and massive economic crises can overrun this protections but it also work millions of times a day.
Yeah.. The "authorities" are awesome at regulation... Totally prevented the 2008 banking crisis. Oh wait....
What the hell is up with all of the unnecessary commas? They have a purpose. They aren't glitter that you sprinkle all over the fucking place.
No. It's not the same. Your bank is earning interest on the money it loans out.. i.e. there is always some positive cash flow.. Well, assuming it's not 2008 and they aren't loaning gobs of money to assholes with a credit score of 400.
These morons were buying coins with money they did not have. If your bank runs out of cash, they make a phone call and have more delivered via armored truck. Your bank can also sell assets or loans to generate cash. i.e. they can sell real property or debt obligations that are backed by real property.
I feel like I shouldn't have to explain this. Gonna have to assume you're a product of our (USA) public school system and have never been taught financial responsibility and how the banking system actually works. Mostly this, probably, isn't your fault. Well, unless you're an adult.. Then you should have sought out the knowledge.. You can't be expected to be spoon fed every bit of information you need to navigate life.
Fiscal education should be absolutely mandatory.. Knowing how to manage your money and how the whole damn system works is information that is critical to a person's financial well being and stability.
the 2008 banking crisis is a perfect example of what happens with lack of regulation, crypto currencies are like a permanent 2008 banking crisis.
No. It's not the same. Your bank is earning interest on the money it loans out.
So it's exactly the same. The bank expects to get the loan amount plus interest back whereas these guys expected to make money when the crypto rose in value. In either case, there is a risk that the bet will not pay off and the person making it will end up in trouble because they have lost the assets they need to repay the customer.
The only difference is that banks are highly regulated and, as a result, have to keep the risk of the bets they make under control. In return they have a central, government infrastructure to provide emergency cash and loans plus usually deposit guarantees.
Perhaps it is time to take a fresh look at Tether...
No, perhaps it's time to take a fresh look at not using fake "currency" slung by carnival hucksters who make Donald Trump look like Mother Theresa by comparison.
I thought the point was that people should look at their finances because it might also be a scam.
> Perhaps it is time to take a fresh look at Tether...
Why? Their auditors bailed when they couldn't find assets to back the coin, which is just the more severe form of the same damn scam
Author owns tether - suspicion level 1.0
StoneCypher is Full of BS