Topic: What is now the difference with Ponzi platforms with cryptocurrency exchanges - page 2. (Read 637 times)
November 19, 2022, 03:24:29 AM
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.
November 19, 2022, 03:20:16 AM
There are many other platforms and exchanges where you can see similar things there and they usually ask you to hold your money there for taking profits or they will suggest you refer your friend for taking advantage of them and that's pretty much similar to a Ponzi scheme scam. I see not any difference there and in my idea, they're still doing the same thing but the only difference you can find here is they won't scam small amounts and run away. For any exchange and platform, it is important to ask people to hold their money there and trust them.
November 19, 2022, 01:58:12 AM
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's true that this a terrible situation for crypto currencies, but to be honest with you the trust was broken a long time ago. It's nothing new that there are considerable security risks at an exchange and we shouldn't leave our coins there for a long time. It's fine to trade, just make sure to withdraw as soon as you are done with trading. The problem with cryptos is that it became very popular last year and attracted a lot of new people. And with anything in life there are good and there are bad people. Saying that every exchange is a scam is wrong, its not a ponzi scheme either. We do need exchanges to trade our alt coins and some people even make a living out of it. It's the same with a stock exchange, people are also not calling it scams. It takes a bad person with criminal intent in a position of power to defraud customers and investors. Better oversight would be one thing for the future to prevent it happening again.
November 18, 2022, 03:23:51 PM
What happened on FTX exchange isn't a Ponzi scheme, it is a mismanagement of funds and a possible fraud from the management. It is obvious that the anti-crypto media will take this opportunity to throw stones at the cryptocurrency industry. So we just need time for the event to cool down.
As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.
As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.
I agree that a Ponzi is predicated on an enterprise that doesn't exist, but in a way, FTX was riding on a house of cards that were one tap from collapsing, and they knew it too. When FTX had billions loaned to Alameda, it wasn't until recently that I learned those funds were then funneled back to Bankman-Fried to the tune of a billion USD.
Without a doubt fraud, misleading investors, and to me, nothing more credible than a Ponzi because the underlying enterprise were based on lies.
November 18, 2022, 03:15:29 PM
What happened on FTX exchange isn't a Ponzi scheme, it is a mismanagement of funds and a possible fraud from the management. It is obvious that the anti-crypto media will take this opportunity to throw stones at the cryptocurrency industry. So we just need time for the event to cool down.
As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.
[1] https://www.google.com/search?q=ponzi+scheme+meaning&rlz=
As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.
[1] https://www.google.com/search?q=ponzi+scheme+meaning&rlz=
I never traded on FTX and I don't have any coins/tokens from their internal projects. I guess that makes FTX a Ponzi, they have/had their own investment funds/projects, and when people started withdrawing the tower collapsed. Of course, the management is responsible for this... we can only guess, but I think they wanted too much and their greediness eat them.
It's been a long time since we had a similar situation, but these things happen and can happen to any centralized service. Decentralized exchanges and services are much better, but people still need to learn about them.
November 18, 2022, 02:11:17 PM
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?
I will go with "IT IS WHAT IT IS".
Exchanges was not the real "idea" behind satoshi's vision. It is actually exactly opposite what he thought and launched the blockchain. It's like Satoshi created apples for us but some thinker later created their own oranges and covered with the Apple skins.
These days what you see is that skin is peeling off and reality is getting exposed. Imagine if there was only bitcoin and the only way to trade it was via sending them from one wallet to other wallet with trust factor being the mutual understanding. I think it would have been the best case scenario.
May be the price would have been little but loss wouldnt have been in billions.
November 18, 2022, 01:48:05 PM
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.
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.
That’s true, it would be very unlikely that we would see Binance going down. I feel like they would be doing security beer than anyone and they wouldn't go with these child’s play stuff that other exchanges which think they are super smart and does in order to bankrupt. FTX did some silly stuff obviously thinking they can get away with it, and obviously they couldn't and that’s why they dropped to this low levels, otherwise they wouldn't.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.
Binance is too smart and they wouldn't let such things happen and that’s why I believe they would never be turning into a scam. However, OP is right about the ponzi situation, exchanges do not have as much money as they claim they do, and that’s a problem.
November 18, 2022, 12:50:52 PM
There are couple of interesting decentralized or self-custody exchanges around. With them you have control over your fund and they are more suitable for long-term investments, or for buying dips.
Just make sure you do your full due diligence. Not all DEXs are built the same. In fact, the majority of DEXs out there, those you'd find on "top dex" lists and on search engines, anyway, aren't as safe as you might think.
Self-custody is really the only thing they have different from regular exchanges. But manipulation, lack of transparency, censorship, centralised and closed development, haphazard security, etc. Same same.
November 18, 2022, 11:40:41 AM
Reminds me how regulated banks were ran in the past before they had serious issues... You give them money, they squander it and governments bail them out. Interestingly, it's one of the reasons Bitcoin was invented but they are trying to abuse it the way the banks were abused. To minimize or stop the abuse people must use Bitcoin/crypto the way it was meant to be used... in p2p decentralized manner. You should have nothing to do with exchanges that are run like banks, they are completely contrary to the ideals of Bitcoin.
There are couple of interesting decentralized or self-custody exchanges around. With them you have control over your fund and they are more suitable for long-term investments, or for buying dips.
There are couple of interesting decentralized or self-custody exchanges around. With them you have control over your fund and they are more suitable for long-term investments, or for buying dips.
November 18, 2022, 08:21:32 AM
Realizing that there are a lot of exchanges that take your money, and let you "trade" while they keep your money in their safe, and you do not have to do that at all, do not have to let them have your money, would be the first step. Binance and all other places take your money, and then they tell you that it would be smarter if you could end up with just trading there without withdrawing.
Because, if ALL people withdraw ALL of their money, all exchanges would fall. This is why DeFi was such a huge deal, because if you put it in your own wallet, and trade via some DEX that would mean that your money is at all times in your wallet, and never given to anyone else.
Because, if ALL people withdraw ALL of their money, all exchanges would fall. This is why DeFi was such a huge deal, because if you put it in your own wallet, and trade via some DEX that would mean that your money is at all times in your wallet, and never given to anyone else.
November 18, 2022, 05:39:42 AM
I am not surprise that some media now started to report crypto exchange as Ponzi and comparing it that way.
Too bad but I understand their sentiment yet they are wrong putting crypto exchanges in general. Because what happened to FTX is only for the FTX team. Social media is really trying to use their platform to help spread misinformation and this is not good. Quote
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?
More exchanges turn into scams, which seems alarming and we know people will consider this as a reason to stay away from crypto. Yeah, trust is somehow broken and doubts arise about which exchanges to trust as Binance also involve in the issue. 
November 17, 2022, 11:13:38 PM
Yes, anything can happen in this market but I also agree with you that binance crash is very unlikely. I also used a lot of exchanges but in the end I ended up with binance, I almost don't trust any 2nd exchange even with FTX and coinbase, and I am not a victim of FTX recently. I also want to emphasize like you, everything has risks and binance is no exception, although binance is considered the safest by far, the future is unpredictable. But I was prepared mentally as well as willing to take risks because when I entered this market, I determined that investing in cryptocurrencies was risky.
Back in few years ago, Mt.Gox was the biggest exchange since 2013 and anyone really trust it. No one expect Mt.Gox because it's the most biggest and popular centralized exchange, just like you thought on Binance. But on 2014 everyone was wrong, Mt.Gox collapse and they can't refund to every holders until right now, even though there's progress that they're promise to pay the Bitcoin in this year.Sooner or later Binance will collapse, no one can predict the future and you're not working in Binance, so you're not know the actual of Binance's financial.
Whether binance will crash or not, let time tell, you cannot look at Mt.gox or FTX to confirm binance will crash. I don't know do you use binance? but what they are doing is definitely very different from the rest. They are all different but I will agree with you that no one knows what will happen in the future, even bitcoin.
I'm not defending them just because I'm using their services, but I'm prepared and aware of the risks I face if something goes wrong. Except for the holders, the rest of the market, I bet they'll be back to using CEX soon, we can't separate them. The ugly truth, but there are ways to avoid relying too much on them as well as ways to protect assets, so it is not necessary to eliminate all just because of 1 or 2 destructive components.
November 17, 2022, 06:34:32 PM
What happened on FTX exchange isn't a Ponzi scheme, it is a mismanagement of funds and a possible fraud from the management. It is obvious that the anti-crypto media will take this opportunity to throw stones at the cryptocurrency industry. So we just need time for the event to cool down.
As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.
[1] https://www.google.com/search?q=ponzi+scheme+meaning&rlz=
As we know Ponzi scheme is a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.[1] but FTX does not offer a quick return on their investment that is paid by the later investors. FTX is an exchange and somehow uses their client money for other purposes.
[1] https://www.google.com/search?q=ponzi+scheme+meaning&rlz=
November 17, 2022, 08:03:26 AM
Yes, anything can happen in this market but I also agree with you that binance crash is very unlikely. I also used a lot of exchanges but in the end I ended up with binance, I almost don't trust any 2nd exchange even with FTX and coinbase, and I am not a victim of FTX recently. I also want to emphasize like you, everything has risks and binance is no exception, although binance is considered the safest by far, the future is unpredictable. But I was prepared mentally as well as willing to take risks because when I entered this market, I determined that investing in cryptocurrencies was risky.
Back in few years ago, Mt.Gox was the biggest exchange since 2013 and anyone really trust it. No one expect Mt.Gox because it's the most biggest and popular centralized exchange, just like you thought on Binance. But on 2014 everyone was wrong, Mt.Gox collapse and they can't refund to every holders until right now, even though there's progress that they're promise to pay the Bitcoin in this year.Sooner or later Binance will collapse, no one can predict the future and you're not working in Binance, so you're not know the actual of Binance's financial.
November 17, 2022, 06:47:22 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.
Yes, anything can happen in this market but I also agree with you that binance crash is very unlikely. I also used a lot of exchanges but in the end I ended up with binance, I almost don't trust any 2nd exchange even with FTX and coinbase, and I am not a victim of FTX recently. I also want to emphasize like you, everything has risks and binance is no exception, although binance is considered the safest by far, the future is unpredictable. But I was prepared mentally as well as willing to take risks because when I entered this market, I determined that investing in cryptocurrencies was risky.
November 17, 2022, 06:23:18 AM
What causes the exchange to crash? that there is a lack of transparency with FTX owners and management. So, it may take time for many users to trust other cryptocurrency exchanges. This can be seen when you compare one cryptocurrency exchange to another by asking their security system if possible.
Joining a Ponzi scheme to get rich quicker then they should know that it is a scam and will fail at one point in time. It's like gambling, don't use your real funds in such platforms. Also society should be aware of such things.
Luckily, there are still people building cryptocurrency exchanges in a transparent and customer-friendly manner.
Joining a Ponzi scheme to get rich quicker then they should know that it is a scam and will fail at one point in time. It's like gambling, don't use your real funds in such platforms. Also society should be aware of such things.
Luckily, there are still people building cryptocurrency exchanges in a transparent and customer-friendly manner.
November 17, 2022, 12:40:31 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.
November 16, 2022, 03:10:21 PM
........
Quote
A Ponzi scheme (/ˈpɒnzi/, Italian: [ˈpontsi]) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.
Source: https://en.wikipedia.org/wiki/Ponzi_schemeJust for more engagement for other people to know what SBF has done to investors and traders, that is the meaning of a Ponzi scheme. SBF has done more harm than good and this will hunt other centralized exchanges, the trust is no longer there and not just that, people have learned to move their trading to decentralized exchanges. The entire capitalist who invested in FTX, the whale are all mostly at losses and the ones who have sold back to stablecoin has been unable to withdraw and the chance of getting their money back is slim or at least, it will take months or years, it is high time we all avoid these centralized exchanges
November 16, 2022, 01:50:34 PM
To put your savings in your own wallet and secure it with well-known means of protection, including not to share your private keys and passwords with anyone. Any damage that occurs to it will be your responsibility alone, and we cannot blame anyone.
As for decentralized platforms, they may be more secure than centralized platforms, but this does not mean that they are the best way. I remember the CryptoBridge platform when it was launched it was a decentralized platform and then suddenly they started asking for identity documents from users before the platform stopped and users' money was lost. There are many other examples that confirm that it cannot be trusted one hundred percent.
You need to have good knowledge in order to be able to protect your investments from fraudsters. But for this you need to spend a lot of time to thoroughly understand all aspects, it is difficult and therefore most people study these important issues superficially. In the end, it's about your money, and so it should be one of the main things you need to worry about.As for decentralized platforms, they may be more secure than centralized platforms, but this does not mean that they are the best way. I remember the CryptoBridge platform when it was launched it was a decentralized platform and then suddenly they started asking for identity documents from users before the platform stopped and users' money was lost. There are many other examples that confirm that it cannot be trusted one hundred percent.
November 16, 2022, 11:46:52 AM
We may find exchange platforms in the future like a Ponzi scheme. There is a difference between them, but the two share that they are not safe places for investors and traders. How many exchange platforms have been hacked so far? How many exchanges have gone bankrupt early? How many victims of exchange platforms and Ponzi scheme? In fact, after what happened to the FTX platform, it will be difficult for any investor to put his wealth in any exchange platform, which is indeed a great risk. I see that exchange platforms are not the right place to hold our tokens on it, It is only for P2P and some simple trading.
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