[source](
https://twitter.com/WhaleChart/status/1592198750969397250
- WhaleChart
Over the last week we have seen the beginning of the unravelling as there will be more fallout from FTX. The one good thing is this will help clear out all the bad actors in this space and good riddance to those.
Just in the last few days we have seen plenty of rumors regarding other exchanges and how they are funded or aren't as there seems to be some confusion. Surely one would think if everyone withdrew their funds today they would still have liquid available, but that doesn't seem like this is the case. Having a proof of reserve would take away any uncertainty but how many exchanges would remain after this?
This still doesn't make sense why another exchange would be storing customers assets on another exchange and still be too slow to remove the funds when the warning was given. This tells me they were staked in some project earning a ponzi APR and were locked in.
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Same story with Coinbase.
Lets face it $18 million is not a big number and Huobi should still be ok financially. I use Huobi only for popping in and out trading and literally my coins are on their platform for around 5 minutes maximum. I have no other choice when it comes to Coti as they only charge 1 Coti for the withdraw compared to others charging 50 or 60 Coti per transaction on withdrawing. They serve a purpose ,but would I stake on their exchange and that would be a big no.
Trust has to be earned and to be honest there are very few exchanges out there that I am comfortable with. Even if I was comfortable I would still never store a fortune on there as crypto is hard enough to grow without giving it away due to rug pulls.
Risk is all over right now with so much uncertainty mixed with lies or hidden truths.
There has been some shady shit happening and the exchanges moving funds between themselves is not reassuring as why would they do this if they had legitimate funds? There is no legitimate funds is what this is telling me and would avoid them at all costs as the trust has been destroyed not that I had any trust before.
If those were their funds then why all the sudden movement between exchanges which tells us they were only borrowing them to highlight what they don't have. This is only going to create panic and withdrawals from these exchanges either to drop the value so the price can be manipulated to buy back cheaper or they are in trouble. Crypto.com saw a run on CRO earlier this week, but has bounced back strongly so what is the truth? Games are being played which are shady at best and why regulation will happen and it is all bought on by the bad actors in crypto. They don't care as they have already ripped everyone off earning fortunes through their dodgy deals.
Whatever happens there is some positive results that will come out of the downfall of FTX as everyone is learning a hard lesson. Not much was learned from the LUNA crash besides doing your own DYOR and how many other projects were tied into that failure. FTX will have plenty tied in with them and the fall out will be interesting to watch as we haven't heard all of it yet. This is the start of the fall out and we will be amazed as how many have been caught up in this which is actually good news for crypto in general.
