Any exchange that can be bank run deserves to be bank run

It should be as simple as this:

Users deposit funds.

Funds are held in custody.

Users withdraw funds.

Any exchange doing anything else is gambling with users' funds and deserves to fail. You're not a bank, you should not be running on fractional reserves, you aren't too big to fail and you won't be bailed out by the government. So why do it in the first place? Surprised it's even legal.

Let's hope the space learns from this, exchanges are forced to provide proof of reserves and we never see anything like it again. Some comforting words from the CEO's of two of the largest exchanges below:

Brian Armstrong on Twitter:

We don’t do anything with our customers' funds unless directed to by the customer. We hold all asset dollar for dollar, and users can withdraw their money at any time.

CZ Binance on Twitter:

All crypto exchanges should do merkle-tree proof-of-reserves.

Banks run on fractional reserves. Crypto exchanges should not.

@Binance will start to do proof-of-reserves soon. Full transparency.