1. I have a lot of respect for Jesse Powell of Kraken in this respect. He actively tells people to take their coins off his exchange.

  2. Their published Merkle tree is pretty cool. It wouldn't mean anything to me if they published it themselves, but they engaged an independent audit firm who published it.

  3. Kraken offers "staking" your coins and fiat for a (below-market) interest. So at least they are interested in holding customers' funds. What they use them for I don't need to explain.

  4. This is wrong on many levels, and too many folks are falling for Jesse's apparent "fundamental values". Kraken would fail as an exchange spectacularly if every client actually did what Jesse preaches ... every pair would be a ghost town with ridiculous spreads and prices. The reason it's not like that is precisely because Kraken needs people not to treat his exchange like a public toilet, quickly in and out. It needs hefty market makers for every pair (try to learn about "market makers"), arbs, replicators ... but you won't hear Jesse talk about Kraken's needs for market makers, just like you won't hear him talk about his worthless and circumventable attestation that he intentionally mislabels as audit or the plethora of shitcoins his exchanges is listing, or their staking.

  5. Let's not forget Jesse has a bad rep during segwit2x. He is Roger high school friend and they're both allies at the time. But what I hate more is Coinbase, Brian the ceo is such a shitcoiner. Trust absolutely no one.

  6. Holding capital of any kind is good for any exchange not just in cryptocurrencies. Think of how debt works conventionally, it’s pretty much people’s savings in their accounts. This ‘free’ money concept is as old as capitalism where a mediator holds others’ balances and actively uses that capital to make more money including by investing it. The ideal way is as you say, the exchange should encourage people to sell and only make money from trading fees but well it’s not an ideal world.

  7. People have forgotten a few years ago when kraken went completely down for weeks, maybe months iirc.

  8. This is a common practice among exchanges, as holding assets on behalf of users can create additional liabilities and risks for the exchange without providing any additional benefits. By encouraging users to withdraw their funds, Kraken is demonstrating that it is focused on providing a secure and transparent platform for trading, and that it is not interested in holding or managing users' assets.

  9. I imagine the benefit to the exchange is being able to show their deposit balances and use that to secure more funding for future projects and ventures.

  10. I love Kraken as well. Funny thing about Kraken - they'll send me my Bitcoin BEFORE the transaction even clears with my bank to send them the fiat....it's like, what if I closed my bank account in the interim? I'd never do that to them, but it's funny that they trust like that.

  11. Agree but sadly is that they have this old font looking exchange and sort of complex market. Wish they renew it

  12. This is the real Crypto winter. The FTX collapse was swift and directly provoked like a band aid getting ripped off. The real underlying weakness comes out when the situation is month after month of low customer balances . We'll see how much run rate these exchanges have. Most of them are very recent companies with investors, built on leverage. The leverage is thinly covered at best. Each investor backed exchange will need to make decisions soon.

  13. I still continue to DCA through bitstamp, I just don’t hold the bitcoin on the exchange… that’s why I find it a bit strange that they emailed me to get hold of my bitcoin.

  14. Lots of exchanges are sending out emails like this, and there’s a decent chance most of them just don’t want to lose your business. They get virtually all their revenue from trading fees, so it makes perfect sense they would encourage customers to return and reassure them after some of the dust has settled.

  15. Right, the big flex right now would be telling customers to take the coins, please. That’s how they would build trust. Continue on like that for a while and maybe people put them back. But right now, everyone needs to have their coins the hell off of these exchanges.

  16. All your money is safe AND we lend out to generate 3.42% yield AND subsidise your trading fees. Something doesn't add up.

  17. You are talking about cash balances & stablecoins backed by treasuries here. So this risk is related to cash & stablecoins you might have on or off exchanges. I don’t know how self custody of cash would work? And self custody of stablecoins backed by Treasuries doesn’t do anything for not “carrying the can.” Bitcoin is not backed by Treasury. And there self custody would work. I am confused how US treasuries are relevant for CEX cryptoassets not backed by Treasuries.

  18. Send Bitcoin directly to your cold wallet with the “pay” feature on Strike app and only pay miner fees. No spread. Only a $1,000/week limit but it’s how I’m DCAing.

  19. They’re probably bleeding physical Bitcoin now and getting worried about a liquidity crunch. They have no sound reason to be begging for people to let them hold their funds.

  20. Exchange is confusing itself with a bank 😅 Exchange is where you do business, not where you save your money.

  21. I’d say it’s more of a buisness/pr thing. As an exchange, you want to keep your customers, so you can’t just stand still and say nothing to them. Said customers will be panicking about their assets, so it’s only right to put out an automated email at a minimum.

  22. Bitstamp decided to raise their base taker fee from 0.25% to 0.5% two years ago. While Binance made BTC/USDT trading free. They made themselves obsolete.

  23. “Listen man, we never lend your funds, as a matter of fact, your funds are super duper safe because we are super mega duper regulated with licenses of companies we bought, we are not desperate at all… but please for the love of god keep your BTC with us, we beg you!!”

  24. The US is not great for this either. Thanks to the Patriot act, data is collected en masse without court orders, and these tech companies are not allowed to tell you your data is being given to the feds.

  25. I remember those guys. My first exchange to use until I got email from them stating, that inactive accounts will be charged ridiculous fees. With my poor mans portfolio (few hundred), I'd actually be at 0 in just a few months. That's why I'm never coming back there, even tho I got another email after deleting account, that "they listened" and decided to not implement the fees.

  26. Yes, most exchanges today don't hold full reserves and operate in a fractional reserve system. It means that given sufficient pressure there is no sufficient assets to cover all clients.

  27. That doesn't sound good at all. If they are backed 1:1, then why would they be blasting out emails to "invite you back"? They don't earn money holding deposits

  28. The desirability and viability of crypto has an asset is declining faster. To save the crypto space their is need to find some sort of utility for tokens issued or Blockchains.

  29. Bitstamp decided to raise their base taker fee from 0.25% to 0.5% two years ago. While Binance made BC/USDT trading free. They made themselves obsolete. It’ll all work right

  30. I got one too. Haven't used Bitsamp for a while, because they separated their business between Europe and US. Can't use them with SEPA anymore.

  31. I want worse for Cex, bitcoin was meant to be decentralized but these exchanges forced it to be controlled and monopolized.

  32. Bitstamp lost their mind around 5 years ago. It started to demand crazy KYC stuff for every fucking Satoshi ever were on your account.

  33. I would have so much more respect for these companies if they outlined their business scheme and how they make money before they try to scam me.

  34. The good ones shouldn’t. As Jesse Powell recently said, an exchange shouldn’t what your funds just sitting there. They don’t make money on it, they make money on your trades. Your funds being there just c creates unnecessary risk for them.

  35. Just wait and see. The domino effect has started but we have seen it playing in full. Exchanges will struggle with less liquidity and even less funds available to trade. If people close orders and take USDT out of exchanges, it will be a real bear. People still hold orders open.

  36. Invite you back with no incentive. So in other words please just come and help us, but there’s nothing for you in it.

  37. Where is the desperation in that email? You can only think so under the assumption that they are broke already. That's confirmation bias at its best.

  38. I noticed a Grayscale advert on YouTube yesterday asking for new investors. That would be a bummer if you invested now and lost it tomorrow.

  39. I would be concerned about having any assets on it. It should not matter to them if you take your coins off the exchange.

  40. Binance are - I keep getting emails from them telling me to trade and I'd get £10 deposited to trade with etc... only started when ftx and crypto went down.

  41. 29% work in compliance? 🤣 I don't know why I need to know that number, but needing almost 1/3rd of your stuff to work on regulatory issues instead of improving the platform does not give me the comfort they seem to think it should. Good crypto uses can recognize this is exactly the behavior of a bank, and act accordingly.

  42. Looks like Bitstamp is capitalizing on recent FTX(?) fiasco to get some more deposits and hopefully trading fees. They honestly make enough money from fees to not have to fuck anyone over, they just won't become overnight billionaires or whatever. Luckily they're one of the oldest exchanges, so they've had plenty of time to scale up their operations.

  43. While I'm not sure what the motivation behind this email was, it's important to be aware of any offers that come your way. Be sure to do your own research and always use caution when dealing with exchanges.

  44. No, they sent this to reassure customers after FTX, and it looks like they also have a withdrawal trigger to “extra reassure” people. It’s automated and you shouldn’t give it a second thought. It’s in their best interest to keep people trading. marketing 101.

  45. Yes I still have an account and DCA so I Havnt left - just my bitcoin leaves every few weeks :) I don’t get involved with yields so I can’t speak to it

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