Thanks for adding your thoughts on the situation and I think your points are well made. Many businesses models gravitate around making things faster, easier, cheaper and more convenient. I agree that the average user or noob just doesn't want to go through the hassle of managing their tokens on several different blockchains and/or exchanges - they want a one-stop-shop type of solution. The reality is that many token holders are not terribly interested in anything aside from price speculation so therefore they could care less about chain governance.
I've been thinking a lot lately about how things in the crypto space are evolving and how exchanges, in particular, are becoming like finance 1.0 banks. Just look at all the fancy products they're coming out with - 101 ways to lose your tokens if you ask me - leverage trading and the likes. When we add price manipulation into the mix it really seems more like a casino where you can lose everything in the matter of seconds.
I'll be honest here, I hadn't considered that the exchanges may not even possess the amount of tokens they claim and the possibility that they could increase the supply of tokens as they see fit, damn that's shady. I have looked into the Tether USD manipulation in the past however so I shouldn't be that surprised.
You are viewing a single comment's thread from:
Shady indeed. Fractional reserve banking is completely possible with exchanges. It's so easy to do it's scary.
It's even easier for exchanges because if they ran out of real crypto for withdrawal requests they could just do the dumb "wallet maintenance" thing and people are used to that. I've never heard a bank say "sorry no withdrawals today". There'd be a riot.