Crypto.com preliminary audit shows 20% of its assets are in shiba inu coin | Hacker News Reader

Crypto.com preliminary audit shows 20% of its assets are in shiba inu coin

coindesk.com

77 pointsVagueMag30 comments

> The reason our Proof of Reserves include Shiba is because we hold customers' balances 1:1. Thus, our Proof of Reserves are dictated by our customer holdings.

Are we really supposed to believe that on a large exchange 20% of customer holdings by value is shiba?

yes, sure why not? if its 1:1 it doesn't matter what they hold. it doesn't matter if shiba inu imploded in value, the exchange will function fine. now if they were merely collateralized by shiba then we have a big problem.

I assume people who buy Shiba are the people who won't/don't know how to store their own keys. Whereas older coins the longer term hodlers know the common mantra of not your keys, not your coin.

Not your keys not your coins. Everyone losing their shirts trusting these organization is, frankly, getting what they deserve. Crypto is the wild west still and there is a minimum barrier to entry which is knowing how to hold your own assets.

One of my neighbors bankrupted himself by putting all his money into crypto.

It's fun to laugh at the suckers, but the rest of us end up paying their bills when they can't.

Privatized gains socialized losses. The capitalist way

I don't think you understood my post. This isn't cheap schadenfreude at someone losing money, it's a technical point. If you own your own keys you don't care which exchange goes bust, because you are your own exchange. If you're looking for someone to point and laugh you're replying to the wrong post.

Do you understand what is going on here? It means that 20% of their deposit base has purchased SHIB coin.

It is not about crypto.com going kaput.

>> It is not about crypto.com going kaput.

It looks like you don't understand what means to give your money to a 3rd party.

Doesn’t this just mean that 20% of customer assets are in SHIB? I meant that’s depressing to learn, but that’s the customers’ problem and not the exchange’s if so.

Yes that’s exactly what it means. HN is leaping to conclusions again.

At this point isn’t the actual concern that HN isn’t leaping to conclusions soon enough?

People were defending FTX after the acquisition announcement was made here and a whole bunch of people were calling foul on the article linked the day before which said that FTX was insolvent.

reading through these threads is something between listening to MLM addicts and people into the likes of say Joel Osteen. It's so bizarre on this site lately.

I blame a growing contingent of redditors joining HN as r/programming is becoming spammy nonsense. I’m one of them but I keep my mouth shut and rarely comment. I predict that HN will also start to rot as this trend continues. And we’re maybe going to end up right where we started: subscribing to our favourite news outlets.

HN is one of the worst place on the internet but it pretends the opposite and watching the insanity here is addictive, I have to admit I cant help yelling at them when they say really stupid and/or antisocial things.

Everyone knew FTX was lending and borrowing, they didn't know the extent or how much they relied on shoddy collateral to be credit worthy, they didn't know they were using customer funds as well.

Is Crypto.com a lender? That's not what this discussion is about, that's not what Proof of Reserves are about. The folly comes from using collateral, not having assets at all.

There’s a ton of shibu ads on the streets of Dubai right now. They’re advertising soccer nfts, trying to get in on the World Cup action.

To me it seems weird to have giant animated billboards for crypto when the market is losing billions

I caught an FTX logo while watching cricket yesterday.

Well, seems like yet again the American tax payers will have to rescue Matt Damon from another shitshow.

I really wonder how much of the crypto valuation is simply due to exchanges/funds being allowed to take unrestricted risk with client funds.

It’s this, plus the Fed printing money by buying assets and pushing rates to the floor.

How will Matt Levine EVER be able to take time off?

Fishy exchange holding shitcoins, not surprised lol

It’s their customer balances.

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