Advertisement
AD

Main navigation

Crypto Exchanges Lie That Your Funds Are Safe: Nouriel Roubini

Advertisement
Tue, 22/11/2022 - 12:50
Crypto Exchanges Lie That Your Funds Are Safe: Nouriel Roubini
Cover image via www.youtube.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Advertisement

Renowned economist Nouriel Roubini, famous for predicting the collapse of the mortgage market in 2008-2009 and called "Dr. Doom" for that, remains a vocal crypto hater.

This time, he has taken to Twitter to take a dig at crypto exchanges and the concept of "proof of reserves" offered by CZ of Binance.

"Customer assets not safe in bankruptcy," here's why

Roubini has taken a jab at crypto exchanges and the "proof-of-reserves" concept recently offered by CZ of Binance in response to FTX going bankrupt, along with its founder, former crypto billionaire Sam Bankman-Fried.

CZ called on crypto exchanges to provide proof of reserves to show the crypto community that exchanges are indeed keeping customers' crypto safe. Today, CZ announced that the subsidiary of Binance, CoinMarketCap, has launched a new dashboard feature that the shows PoR of various crypto exchanges.

Advertisement

This feature shows that the funds held by Binance surpass $78.7 billion worth of various cryptocurrencies.

Still, "Dr. Doom" Roubini believes that PoR is merely a gimmick employed by exchanges and crypto lenders to pretend that they are keeping their clients' money safe. In reality, Roubini insists, since funds are in the custody of a crypto exchange, this means the money is on its balance sheet. This means that if a platform goes insolvent, like FTX did, the funds are not safe.

Finally, he stated that exchanges are, in fact, pretty much banks in this respect.

Related

Bitcoin drops hard as lack of trust in exchanges surges

At the moment, the leading digital currency, Bitcoin, has plunged on, reaching the $15,720 zone — a low last seen two years ago. Santiment analytics agency explains this massive price fall that started after the FTX scandal and collapsed with the growing lack of trust in crypto exchanges.

The fall of the FTX giant has generated a great amount of FUD and now Bitcoin and Ethereum are seeing massive withdrawals from centralized exchanges into self-custody.

Crypto influencer David Gokhshtein, who founded Gokhshtein Media, has also commented on this issue. In one of his recent tweets, he stated that anyone who continues to keep their crypto on exchanges, CEXes or DEXes, is "a complete vegetable."

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD