> The reason our Proof of Reserves include Shiba is because we hold customers' balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.
yes, sure why not? if its 1:1 it doesn't matter what they hold. it doesn't matter if shiba inu imploded in value, the exchange will function fine. now if they were merely collateralized by shiba then we have a big problem.
I assume people who buy Shiba are the people who won't/don't know how to store their own keys. Whereas older coins the longer term hodlers know the common mantra of not your keys, not your coin.
Not your keys not your coins. Everyone losing their shirts trusting these organization is, frankly, getting what they deserve. Crypto is the wild west still and there is a minimum barrier to entry which is knowing how to hold your own assets.
I don't think you understood my post. This isn't cheap schadenfreude at someone losing money, it's a technical point. If you own your own keys you don't care which exchange goes bust, because you are your own exchange. If you're looking for someone to point and laugh you're replying to the wrong post.
Doesn’t this just mean that 20% of customer assets are in SHIB? I meant that’s depressing to learn, but that’s the customers’ problem and not the exchange’s if so.
At this point isn’t the actual concern that HN isn’t leaping to conclusions soon enough?
People were defending FTX after the acquisition announcement was made here and a whole bunch of people were calling foul on the article linked the day before which said that FTX was insolvent.
Everyone knew FTX was lending and borrowing, they didn't know the extent or how much they relied on shoddy collateral to be credit worthy, they didn't know they were using customer funds as well.
Is Crypto.com a lender? That's not what this discussion is about, that's not what Proof of Reserves are about. The folly comes from using collateral, not having assets at all.
reading through these threads is something between listening to MLM addicts and people into the likes of say Joel Osteen. It's so bizarre on this site lately.
I blame a growing contingent of redditors joining HN as r/programming is becoming spammy nonsense. I’m one of them but I keep my mouth shut and rarely comment. I predict that HN will also start to rot as this trend continues. And we’re maybe going to end up right where we started: subscribing to our favourite news outlets.
HN is one of the worst place on the internet but it pretends the opposite and watching the insanity here is addictive, I have to admit I cant help yelling at them when they say really stupid and/or antisocial things.
Not everyone pays that close of attention. There was a lot of confusion about Musk's doge tweets which Shiba used as marketing. Shiba also boosted their market cap by minting all their tokens at once and giving half to Buterin's cold wallet, this making it jump on the leader board with a smaller amount of initial investment. Then they claim deflationary status by having community burns in the millions (which is extremely low volume relative to the volume in existence). Plus being a eth l2, defi works out of the box so people looking to do something with their compatible existing tokens/wEth we're able to 'diversify' into it.
Can you explain what's funny? This is exactly what they are supposed to be holding.
The problem would be if they didn't have the shitcoins and then their customers go to withdraw. Not the fact that they actually have the exact set of shitcoins they are liable for to their customers.
