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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
“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!!”
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.
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.
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.
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
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.
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
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.
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.
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.
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.
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.
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.
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.
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
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.
The mighty kraken!
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.
Same with strike
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.
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.
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.
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.
jespow
I imagine people keeping assets on exchange results in more trading thus more fees.
Relai exchange sends the crypto to your Wallet When you buy
People have forgotten a few years ago when kraken went completely down for weeks, maybe months iirc.
Kraken sucks. Everyone idolizes Jesse but his a real prick hiding in his crypto-righteous cloak.
Only issue with them that are my favrt coins not listed their. Need to rely on kucoin gate io mostly
But he opened a shitcoin casino. He's no better than SBF
Wow, that some rare management right there
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.
They have long term vision.
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.
Kraken is a class act, albeit their tonedeaf communications dept could use 6 overhauls.
A fella once said recently, Kraken was not legit bc the post had not received any likes yet.🤣🤣
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.
Agree but sadly is that they have this old font looking exchange and sort of complex market. Wish they renew it
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.
The real crypto winter, same as the last crypto winter.
What's your opinion on coinbase?
Hah, I started using Bitstamp in 2013, they're probably the oldest most solid exchange I know.
They live and die with trading fees. Clearly asking you to go back in action.
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.
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.
Yes, they are desperate
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.
How is 3.42% APY being generated without touching the reserves?
Good question
Science 💪💪
You have to actually stake your coins. Not reserves.
Looks like they want to sell you Crypto.
I guess what you meant is "they want to sell YOUR crypto" 😏
I'd stay the hell with them if they are desperate to enough to send out emails like that.
Two rather big red flags:
Wow they’re still pushing a yield product?!
Pushing 3% is not the same as 30%.
"Crypto rewards" = 🚨
All your money is safe AND we lend out to generate 3.42% yield AND subsidise your trading fees. Something doesn't add up.
This seems like a regular marketing email like come on stop being so paranoid lol
Yep something’s not right Coinbase sent one similar
It’s starting…
Whats is it?
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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.
"Your crypto is always yours" loooool
Unless something happens, in which case fuck you lmao
''Except when the private keys are ours''
Methinks they doth protest too much
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.
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.
Exchange is confusing itself with a bank 😅 Exchange is where you do business, not where you save your money.
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.
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.
I prefer to pay for a service, than to get smth for free. Nothing is free.
Every BTC-Pair on Binance is 0% fee atm.
“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!!”
Bitstamp is based in Luxembourg.
Run from nearly ALL exchanges.
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.
Thank you, I was looking for this comment
I will never use a US exchange. That's truly the Wild West
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.
No reason why an exchange needs to hold your deposits unless they’re doing some shady shit behind the scenes.
!RUN 🏃♂️ DA NA NA NA 🤣
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.
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
Why would they pitch Earn after every thing that’s happened this year 🤨
Clearly not yours
Big red flag if you ask me.
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.
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
Not to be a jerk but was this copy and pasted or are you a bit?
Posting from your other sock puppet account?
Hahaha love it
Damn, this wouldn't give me a warm an fuzzy AT ALL
Definitely. They need enough deposits to cover their payroll lol
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This pitch feels like what the GNC guy gave me just today on all their products, when all i wanted was a multi-vitamin.
Another red flag. Getou’there!
This is an interesting time for crypto exchanges.
We can't do fractional reserve banking without you!
Any crypto exchange isn't a crypto exchange. Most in reality are casino's.
Even more reason to take it off the exchange.
Wow that sounds desperate
To be fair, BitStamp is one of the longest running exchanges (founded in 2011).
He actively instructs individuals to remove their coins from his exchange.
The Merkle tree they published is really cool.
It's not unexpected. Whole industry is shook so only makes sense for exchanges to try and reassure their users.
Why would you decide to earn at 3.42% at a non-FDIC custodian, when the current Bankrate is 4.00%?
It’s like they lost there consumer “product” or something.
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.
I want worse for Cex, bitcoin was meant to be decentralized but these exchanges forced it to be controlled and monopolized.
Seems like a professional response to the current market situation. I don’t see a problem
Bitstamp lost their mind around 5 years ago. It started to demand crazy KYC stuff for every fucking Satoshi ever were on your account.
Greedy more than desperate.
I like how they just straight lie. "We don't use your funds without you permission" hahahah
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.
Today? I got my weeks ago. Almost direct after FTX collapse. I'm from Europa.
We got an extraterrestrial on our hands here from Europa, moon of Jupiter.
Just seems like a regular marketing email.
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.
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.
They got babies to feed 😆
Bitstamp lost over 18,000 btc in 2015.
Peer to peer
Optics. They need to ensure customers they’re not gunna FTX them
Invite you back with no incentive. So in other words please just come and help us, but there’s nothing for you in it.
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Where does the yield come from?
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.
i have my crypto in cold storage but also don't see anything suspicious about this email
Seems so
Annnddd it’s gone….
Coinbase have just sent me an email saying I can in £50k in USDC if I transfer money in and buy USDC!
Scam bankster fraud got us scared
Funny how every exchange claims to be world's #1
Funds are safu 😂😂
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.
I would be concerned about having any assets on it. It should not matter to them if you take your coins off the exchange.
I use self custodial wallets in 90 percent of the time
It's just good to be secure with something like cold wallet.
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.
Red flag
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.
Bitstamp is no stranger to the topic of lost funds ...
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.
Yup they certainly are
After it was found out FTX was not buying Bitcoins people were buying on its exchange I am not surprised at all…
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.
Another post to chill kraken.. anyway
No, just 4th or 5th rate exchanges like bitstamp do this.
the world`s #1 xdd
The music is playing now, but it will stop. Dont be the last person to try to get your funds out.
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.
Has anyone ever used TrustFinance?
You've just posted a reason why I ditched this dumpster for finex a long time ago
This is pathetic lol
Where should I put crypto
Cold storage wallet.
Yes
So, I don't get this. It says at the bottom: "We'd love to welcome you back to Bitstamp as a valued member of our community."
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
“Your crypto is always yours”
They might have lost $$$$$ with Crooks @ ftx / Alameda BS cos
I got robbed my funds from Bitstamp in 2014. I had left my deposit over there and... they were gone.