Topic: What is now the difference with Ponzi platforms with cryptocurrency exchanges (Read 637 times)
December 03, 2022, 04:52:19 AM
Every day there is always bad news about cryptocurrencies, if we often see the news of Bloomberg TV then cryptocurrencies like always wrong and I pay attention to many TVs that are anti with cryptocurrencies, maybe because there is no cryptocurrencies advertisement on TV so they continue to attack cryptocurrencies, even every week always presented SCAM victims, Ponzi or other bad things from Cryptocurrencies.
November 27, 2022, 05:14:40 AM
Cryptocurrencies has become a very promising thing to get a lot of money in a short time, such as the 30 -year -old FTX owner but already has billions of dollars, and many scam cases from cryptocurrencies that never enter the law so that we have to always have to be vigilant, because the case Like FTX can be repeated at any time, it's better to save assets in private wallets.
November 27, 2022, 01:56:35 AM
To do the research, of course, it takes special time and technique, some exchanges that are a scam and make me very losing money is livecoin, it is difficult to know whether the exchanges that we normally use will be a scam or not because to distinguish it is very difficult and everything looks won't become Scam or Ponzi platforms.
There are highly reputable exchanges so we should be aware of the possibility of being scammed if we try out using new exchanges that are just trying to build up a good reputation. Ponzi and scam platforms will do everything to attract more users and keep them by providing promising promotions but if we stick to long-time reputable casinos, we'll never have the fear of losing our funds. One more thing, we shouldn't store our funds in exchanges to get rid of the risk of losing them. 
November 26, 2022, 02:24:04 PM
Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.
I agree, what is meant by satoshi is irrelevant if there are third parties because they can play as intermediaries as banks play. In my view Centralize Exchange looks like a representation of a bank in the crypto world.
By now we should have started to switch to using DEX for more secure storage.
The domino effects provided by FTX have left such a deep scar on the market and investors, it will be difficult to rebuild trust, I think it will take a long time to fix it.
It's not impossible that Binance will suffer the same fate as FTX someday.
"What's worse right now is that some media are judging crypto like a Ponzi scheme" It's not uncommon for news like this, but in situations like this it can have a huge impact.
November 25, 2022, 09:18:25 AM
To do the research, of course, it takes special time and technique, some exchanges that are a scam and make me very losing money is livecoin, it is difficult to know whether the exchanges that we normally use will be a scam or not, because to distinguish it is very difficult and everything looks won't become Scam or Ponzi platforms.
November 23, 2022, 04:30:07 PM
Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
There are also central platforms that can turn into spam. These platforms are managed by development teams to ensure the necessary updates, and they charge a commission for these services, which is automatically deducted from each transfer to go to the addresses of the work team. The problem may arise if a hacker managed to infiltrate the details of the code on which the platform was created and tamper with the settings.Peer-to-peer transactions remain the most secure and should not be done by any middleman.
November 23, 2022, 10:11:07 AM
Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.
I agree, what is meant by satoshi is irrelevant if there are third parties because they can play as intermediaries as banks play. In my view Centralize Exchange looks like a representation of a bank in the crypto world.
By now we should have started to switch to using DEX for more secure storage.
The domino effects provided by FTX have left such a deep scar on the market and investors, it will be difficult to rebuild trust, I think it will take a long time to fix it.
It's not impossible that Binance will suffer the same fate as FTX someday.
"What's worse right now is that some media are judging crypto like a Ponzi scheme" It's not uncommon for news like this, but in situations like this it can have a huge impact.
November 23, 2022, 06:10:19 AM
Nothing can be done about a broken trust. Decentralized exchanges are still much better than centralized exchanges, but that's not the problem. The problem is with third-party services themselves. The main idea of Satoshi's invention of Bitcoin was to eliminate the need for third parties, but unfortunately this is not actually implemented. With the need for a third party, our money will never be safe.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.
People are always looking for profits so they need to use third-party services and here is the problem, so you have two options: either keep your money safe in the wallet that you only have the key to, or risk your money to get profit or loss using third-party services.
November 23, 2022, 04:09:22 AM
Since cryptocurrencies are so volatile, scammers take advantage of this situation to increase their profit margins, and this causes many people to lose money. There are certain shady practices to be aware of when using crypto exchanges. The player (person) often uses it for gambling or quick trading, but others use it for other unethical and illegal activities to the detriment of all users.
There are many things, where the best crypto exchange is not the ideal place to invest your money or trade. You need to know the market and you shouldn't just trust promises or reviews. The most important thing to do when trying out a new exchange is to learn as much about it as possible. Plus, it's always important to have a backup plan in case something happens that you can't immediately identify or fix.
There are many things, where the best crypto exchange is not the ideal place to invest your money or trade. You need to know the market and you shouldn't just trust promises or reviews. The most important thing to do when trying out a new exchange is to learn as much about it as possible. Plus, it's always important to have a backup plan in case something happens that you can't immediately identify or fix.
November 23, 2022, 02:47:01 AM
What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.
In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.
Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.
I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.
Currently, binance cannot collapse but the future is unpredictable. An exchange collapsed not only due to hacking but also for many reasons, such as FTX they were greedy and violated business ethics when taking customers' money to use for their own purposes, leading to collapse. Binance has stood for so many years, I'm not afraid of them crashing due to an attack, but what I'm afraid is that CZ will become like SBF with insatiable greed or misuse of money leading to binance's bankruptcy.
Another thing is that binance is dominating the market almost completely, which is very easily labeled by the government as manipulation or monopoly in the business. Binance is facing a lot of challenges.
November 22, 2022, 02:51:56 PM
It's not blackmail but apparently a straight-up scam--and it very much reminds me of the Mt. Gox disaster, where there was essentially one individual in charge of a lot of people's money, and that individual was inept at finance at best. This guy SBF looks like a complete tool to me, and it's amazing that he was treated so well in the media prior to this given that he made a statement to the effect that he's in the Ponzi business. I mean, Jesus.
FTX's extensive advertising probably pulled in a shitload of money from people who otherwise would never have invested in crypto and who were too ignorant to know not to keep their crypto on a platform like FTX. That's why this thing is much worse than Mt. Gox, which affected investors who were into bitcoin in the early days. This brand of shenanigans attracts the attention of regulators like nothing else, and I can't imagine the outcome is going to be good for any of us.
This will definitely entail a series of negative consequences for cryptocurrencies. It is possible that people who were involved into FTX by advertising might not be aware of all the risks of keeping their investments on the exchange, and this is a big problem, because now everyone who has lost their investments will spread negativity about cryptocurrencies, although this probably already happened. Many funds that have invested in FTX have also lost a lot of money and this will affect their decision to further invest, and their opinion about cryptocurrencies.FTX's extensive advertising probably pulled in a shitload of money from people who otherwise would never have invested in crypto and who were too ignorant to know not to keep their crypto on a platform like FTX. That's why this thing is much worse than Mt. Gox, which affected investors who were into bitcoin in the early days. This brand of shenanigans attracts the attention of regulators like nothing else, and I can't imagine the outcome is going to be good for any of us.
What happened to FTX is terrible, and it shows that the story of Mt. Gox did not teach people anything, they still continue to keap their coins on the exchanges. As much as I would not like this to happen again, but most likely it can happen again in the future and people must somehow understand that storing their coins on the exchange is very dangerous, any exchange can be the next one, no one is safe from this. Those who communicate on the forum are more likely to learn about these risks.
November 22, 2022, 05:21:38 AM
What you are referring to is what binance has been doing, binance is the only exchange that has Safu. But that also can't be sure if binance collapses all the victims will be compensated, I don't believe it will be that simple.
In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.
Binance collapsing would be quite difficult, it would require a lot of money to do that and I do not think that it would be that possible. I am not saying that it's impossible neither, but it’s quite difficult for something that large to ever drop victim to some hacking attempt.In my opinion, there is no perfect solution in this case, the best way is to limit their use. Absolutely do not trust any exchange even if it is a decentralized exchange, it is not as secure as many people think. Always withdraw all your funds at the end of the day after the end of the trade and never leave too much money on any exchange.
I would like to emphasize very carefully, I am not saying "impossible" so take all the safety and security measures that you can, that’s a guaranteed thing, if you can do that then it would be great, but if you don't and you have to put it on some exchange, Binance is better than any other and that would be a much better method for you, because all other exchanges are even worse.
Currently, binance cannot collapse but the future is unpredictable. An exchange collapsed not only due to hacking but also for many reasons, such as FTX they were greedy and violated business ethics when taking customers' money to use for their own purposes, leading to collapse. Binance has stood for so many years, I'm not afraid of them crashing due to an attack, but what I'm afraid is that CZ will become like SBF with insatiable greed or misuse of money leading to binance's bankruptcy.
Another thing is that binance is dominating the market almost completely, which is very easily labeled by the government as manipulation or monopoly in the business. Binance is facing a lot of challenges.
November 20, 2022, 06:32:54 PM
Sadly, there is not much difference between Ponzi platforms and some cryptocurrency exchanges; as a result, even the "good" exchanges will be lumped in and viewed negatively. History just keeps repeating itself as people didn't learn from mt.gox and now ftx; there will be another soon.
There is always this kind if incident every year, exchanges shutting down, getting bankrupt, and exchanges CEO misappropriating funds. Well an exchange will never get bankrupt if the management is so keen on its responsibility. Though I beg to disagree that Ponzi platforms and cryptocurrency exchanges are the same. These two are very different because an exchange never promises us wealth but only serves that our crypto funds is safe in their hands.
Various kinds of fraud in cryptocurrencies are increasingly diverse and it seems it will be difficult to prevent, this is because it is too free to create a coin or exchanges project, in 2014 when I was new to cryptocurrencies I followed a lot of cloud mining and hyip programs and most of them were scam projects.
When you know more about cloud mining and hyip programs that you've seen in the past, it will actually help you a lot in terms of avoiding them or similar programs in the future. This means you have absolutely nothing to lose when you first find out about such things in the past because it will protect yourself from repeated scams on the same program. So actually you can prevent it when you already know it first.Indeed and you will know that Ponzi platforms are very different from a cryptocurrency exchange. Your given example are platforms that uses Ponzi scheme system and if compared to crypto exchanges, we will find out that they are not the same.
November 20, 2022, 03:07:57 PM
Sadly, there is not much difference between Ponzi platforms and some cryptocurrency exchanges; as a result, even the "good" exchanges will be lumped in and viewed negatively. History just keeps repeating itself as people didn't learn from mt.gox and now ftx; there will be another soon.
November 20, 2022, 12:25:16 PM
Exchanges being insolvent due to whatever reason isn't anything new — that's one of the reasons why the quote "not your keys, not your coins" has been repeatedly said thousands of times already.
this is also what really confuses many people, many traders are trapped in CEX not because they don't know that "not your key, not your coin" but because CEX provides tempting things with promos, cheap fees and so on, which makes people (including me) forgot about the dangers of keeping funds in CEX.
But to answer your topic question, ponzi schemes are ponzi schemes and exchanges are exchanges. What made FTX a ponzi scheme in this case is because of how the CEO(and company) handled their user's funds.
what you said is very true, the CEO of FTX uses users' money to invest in other projects and this is definitely a scam (looks like a Ponzi scheme).
November 20, 2022, 03:57:16 AM
Various kinds of fraud in cryptocurrencies are increasingly diverse and it seems it will be difficult to prevent, this is because it is too free to create a coin or exchanges project, in 2014 when I was new to cryptocurrencies I followed a lot of cloud mining and hyip programs and most of them were scam projects.
When you know more about cloud mining and hyip programs that you've seen in the past, it will actually help you a lot in terms of avoiding them or similar programs in the future. This means you have absolutely nothing to lose when you first find out about such things in the past because it will protect yourself from repeated scams on the same program. So actually you can prevent it when you already know it first. 
November 19, 2022, 11:35:37 PM
I am not surprise that some media now started to report crypto exchange as Ponzi and comparing it that way. This is because of the FTX crash making customers fund disappearing to $1 billion. The exact amount is still not clear because different people are giving different amount to what is lose and Sam Bankman-Fried saying he will write his own story about the issue but the point is he "secretly" transferred money to a trading company Alameda Research. This is IMO a black weekend for people in cryptocurrency because just when people start to look for investment in cryptocurrency now we have FTX top officials secretly embezzling customer money to secretly invest in trading to make personal gain.
Where now is the trust? This is blackmail to crypto industry. There was ICO scam and others happened to cryptocurrency.
We try to running off from Ponzi and we begin to have exchange crash not because of hack but someone trusted with customer money is taking it away secretly. . This is not good to hear. It is sad to read about it and I know you are not happy about Sam Bankman-Fried action that is putting cryptocurrency investors into economic challenge in this hard knock inflation season.
Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?
Where now is the trust? This is blackmail to crypto industry. There was ICO scam and others happened to cryptocurrency.
We try to running off from Ponzi and we begin to have exchange crash not because of hack but someone trusted with customer money is taking it away secretly. . This is not good to hear. It is sad to read about it and I know you are not happy about Sam Bankman-Fried action that is putting cryptocurrency investors into economic challenge in this hard knock inflation season.
Don't say you have to put your coins in your personal wallet or Dex. There you have someone you trust and breaking the trust. This is not good for cryptocurrency or what do you think about the trust broken?
It is just the exaggeration of what really happened to convince people that crypto is bad, did cryptocurrencies made loss to the people no. Its just because of someone's fault or mishandling of funds or scam as you said but don't blame the market just punish the individual who did that is supposed to be the right thing to do.
Exchanges had more trust than it should be so atleast this is some kind of warning bell for all the holders using cryptocurrencies.
November 19, 2022, 04:47:52 PM
FTX isn't ponzi, it's a clear abuse of responsibility. It's clear that SBF manages that user's money to various services to improve its own company finances. The difference? none, both are the same as removing trust in any related and similar entities. And the worst thing is the opinion of new people that bitcoin is considered an integral part of this crime.
Definitely, FTX isn't a ponzi scam since they don't function like that one. FTX is an exchange where people do trades, they released a token but they don't promised anyone of a huge income if they get invested on it. Investors are also not involved in sponsoring new recruits where they will get huge amounts of money as a referral bonus. Unlike Ponzi Scheme FTX is operating as a normal exchange platform. It is that SBF messed up and misappropriate the funds of FTX clients.
November 19, 2022, 08:24:47 AM
There is huge difference between a Ponzi scheme and exchanges or should I say, what played out in FTX. The issue with FTX came off because of a guy that tried to play smart. Trying to use the system for which he was central authority to enrich himself. It's what local banks do being a centralized system and as such, it makes no difference with a centralized exchange.
The mistake or issue here is, trying to make profit off people's money because, it was stored on your platform. Some unauthorised or unconsented loan and he lost it. They forgot the lose part of an investment or perhaps there is a side to the story we've not been told. Ponzi operates on a pyramid scheme, exchanges are nothing of that sort.
The mistake or issue here is, trying to make profit off people's money because, it was stored on your platform. Some unauthorised or unconsented loan and he lost it. They forgot the lose part of an investment or perhaps there is a side to the story we've not been told. Ponzi operates on a pyramid scheme, exchanges are nothing of that sort.
November 19, 2022, 03:58:07 AM
Various kinds of fraud in cryptocurrencies are increasingly diverse and it seems it will be difficult to prevent, this is because it is too free to create a coin or exchanges project, in 2014 when I was new to cryptocurrencies I followed a lot of cloud mining and hyip programs and most of them were scam projects.
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