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This has nothing to do with cryptocurrency. It's just an exchange that gambled away customer deposits and then was liquidated. They're banks. We've reinvented banks with all of the drawbacks and none of the benefits.

This isn't the way cryptocurrency was meant to be used. We were meant to hold our money in our own wallets, not leave it in some centralized exchange so it can "efficiently" allocate the funds. People keep using exchanges as if they were banks and they keep getting burned in ways only banks are capable of.



So why doesn't everyone hold their crypto in their own wallets?

If this keeps happening it speaks to the fact that the current system isn't well designed.


Because they don’t know about hardware wallets or they think it’d be safe to leave their crypto to the exchanges.

Most of the newbies getting into crypto don’t know what it means to hold your keys


No true scotsman would gamble away customer deposits.




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