should we hesitate if exchange have huge reserve? - page 2.

FortuneFollower

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Quote from: Rikafip on September 27, 2024, 02:47:40 AM

Quote from: blue Snow on September 27, 2024, 01:07:19 AM

But, as normal people, should I still hesitate to keep my bitcoin on that exchange if they have a huge reserve? because if they lost or got hacked, they can easily pay your loss and that shouldn't worry.

Of course you shouldn't keep your money on exchange for any longer period of time just because thet say that they have reserves. Thing is, you can't be 100% sure that they will use that money in case of the hack and there is even the question whether they really have the money they claim to have.

So yeah, proof of reserve is just another way to fool the gullible ones into doing something they absolutely shouldn't.

I agree. It's each person's choice, but the risk is always looming around. Also, there is more news about exchanges being hacked and drained of their funds just like what OP said, and it's up to them and their credibility to work around it. And sooner or later, they won't be able to help everybody. Or they wouldn't want to.

pooya87

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Having money now doesn't necessarily mean they will pay you back. There are a lot of scenarios where they don't.
- Like if those reserves are also stolen.
- Or they can file for bankruptcy and not pay anybody back,
- Or they can take the money and run away themselves,
- Or your account alone can get hacked and the hacker steals your money only!

Leaving coins on a CEX account is just too risky that should be avoided unless you have a solid reason for it (like being in active trades).

Rikafip

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Quote from: blue Snow on September 27, 2024, 01:07:19 AM

But, as normal people, should I still hesitate to keep my bitcoin on that exchange if they have a huge reserve? because if they lost or got hacked, they can easily pay your loss and that shouldn't worry.

Of course you shouldn't keep your money on exchange for any longer period of time just because thet say that they have reserves. Thing is, you can't be 100% sure that they will use that money in case of the hack and there is even the question whether they really have the money they claim to have.

So yeah, proof of reserve is just another way to fool the gullible ones into doing something they absolutely shouldn't.

davis196

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Quote from: blue Snow on September 27, 2024, 01:07:19 AM

A couple week ago, our local exchange Indodax got hacked and lost about ±20 Million USD. But, they was recovered fast and back to normal after 80 hours incident. They also were proof that they have about 750 Million USD assets and published it on their site. This means with that their huge asset, they can easily pay back to customers if got hacked on their exchange. But, as normal people, should I still hesitate to keep my bitcoin on that exchange if they have a huge reserve? because if they lost or got hacked, they can easily pay your loss and that shouldn't worry.

When I look now, that exchange back to normal operation and tends to increase transaction, which means many people in our country is look don't care about what happened on the previous week.

It's up to you to decide whether or not to trust a centralized crypto exchange(or any other company) with your money.
Bitcoin/Crypto was invented with the sole purpose of not having to trust any bank or investment fund. Unfortunately, so many people are used to depositing their money in a financial institution and having trust in that institution. They view crypto exchanges as banks, even though crypto exchanges aren't insured by the government. This won't change anytime soon(or maybe it will never change). I would never leave a big amount of crypto in a centralized exchange. It doesn't matter how big reserves this exchange has or how safe this exchange claims to be.

Mia Chloe

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With or without reserves no type of exchange is ok to hodl your coins. Decentralised exchange or service can have huge reserves too and still take you coins from you . Similarly centralised exchanges can do the same especially in the case of government regulations and orders.

Apocollapse

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Quote from: blue Snow on September 27, 2024, 01:07:19 AM

They also were proof that they have about 750 Million USD assets and published it on their site.

Binance has $93 Billion, but I'm hesitate to leave my coins on Binance because centralized exchange isn't a place to leave your funds.

I don't care with how much money they have because when someone have the key, they can move it as much as they want.

Quote

When I look now, that exchange back to normal operation and tends to increase transaction, which means many people in our country is look don't care about what happened on the previous week.

Definitely most people don't care with hack or something bad happen as long as it can be fixed ASAP, but if they were leave their coins in Mt.Gox, it will teach them a good lesson.

blue Snow

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A couple week ago, our local exchange Indodax got hacked and lost about ±20 Million USD. But, they was recovered fast and back to normal after 80 hours incident. They also were proof that they have about 750 Million USD assets and published it on their site. This means with that their huge asset, they can easily pay back to customers if got hacked on their exchange. But, as normal people, should I still hesitate to keep my bitcoin on that exchange if they have a huge reserve? because if they lost or got hacked, they can easily pay your loss and that shouldn't worry.

When I look now, that exchange back to normal operation and tends to increase transaction, which means many people in our country is look don't care about what happened on the previous week.

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