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Are people not aware that they are voluntarily creating a “crypto bank run”

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by COINS NEWS 107 Views

The last 2 days this sub has been filled with warnings about FTX and advising people to withdraw their funds while there’s still time. There was also comparison with Celsius and the similarities between them.

Which makes me wonder - are people voluntarily creating a crypto bank run? It is more than obvious that crypto exchanges act like banks and have only fractional reserves - they need as much revenue as possible to keep going and the best ways to do it is by engaging into activity with all the assets they have, including lending, pledging etc. (aka removing the assets from the exchange for prolonged time) so they NEVER have enough funds to satisfy all withdrawal requests. And yet people here are continuing to fuel the fire. Maybe Celsius was also fine before people spammed everywhere to withdraw?

Not to mention the coincidence with falling prices. Who knows how many malicious actors are promoting withdrawals while opening short positions to tank the market further and use the drama to their advantage.

It is everyone’s decision to do whatever they want with their crypto. But this is becoming ridiculous at this point.

submitted by /u/-ASC-Vermilion
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