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Why would the exchange run into problems in such a case? Some are certainly more reputable than others, but for the most part there's no reason to worry there.
by problems 9y ago
Why would the exchange run into problems in such a case? Some are certainly more reputable than others, but for the most part there's no reason to worry there.
- JumpCrisscross 9y ago> there's no reason to worry there There are failure modes that have plagued exchanges for centuries. Namely, when things go down (a) lots of activity happens in a short period of time, often leading to administration and technical failures, and (b) lots of people lose money which presages them (i) refusing to pony up and (ii) suing.
- zwily 9y agoTypically during BTC crashes even the best exchanges struggle to keep up with the load of people selling.
- grey-area 9y agoQuestions around the solvency of bitfinex have been circulating for years. Do they even allow USD withdrawals at present? Their actions are weirdly reminiscent of the long fall of mt gox.
- joosters 9y agoAs well as the reasons mentioned by others, Bitfinex in particular is an exchange that is in deep financial difficulties. It has no working banking partners for anyone to withdraw USD, and their pseudo-$ currency 'Tether-USD' is rumoured to be massively over-issued to cover their account shortfalls.