Jump to content
Sign in to follow this  
Eric123

Price move on Proof Of Keys or will it Break Exchanges??

Recommended Posts

Here is the Question.  Have exchanges been inflating the supply of cryptos and thus lowering the price by trading in assets they don't have?  Rehypothecation - is basically what the CBOE furtures are, actually they are worse because on for their futures no bitcoins are owned at all.  

https://www.ccn.com/rehypothecation-more-about-the-wall-street-practice-that-could-ruin-bitcoin/

Well we will find out.  On January 3rd Trace Mayer is calling for everyone to remove their cryptos off exchanges.  

https://medium.com/@eljuangalt/proof-of-keys-intentional-crypto-bank-run-4-step-survival-guide-4422b7c0e0d8

In my opinion this is a great idea.  All the manipulation that is occurring will stop immediately.  It wont matter how much money you have if you don't have the actual coins.  When the withdrawals happen the exchanges that have be rehypothicating cryptos will be broken and the fraud will end.  This is a awesome way for the community to show wall street and the traditional financial markets that even though their friends in the Central Banks can create as many dollars, euros, yen, yuan, etc., as they want, they are powerless against crypto!!!!  

Are you participating in Proof of Keys?  All my XRP are already off exchanges but I will be moving the rest of my coins off.  Any thoughts on price. I don't see how this can't raise the price of cryptos as people will learn how scarce they really are.

Thoughts?? 

 

Share this post


Link to post
Share on other sites

@Eric123

Nice question, I hope ~ like you ~ that the prices do increase and I'm sure that some exchanges are absolutely causing inflation by essentially borrowing from Investors; without the knowledge of investors. ie using the crypto left of exchanges to allow the buying and selling of a certain % of tokens that they "don't own" but are available to them as the tokens left on their exchanges. 

 

However my guess would be that although this must be happening, to some degree, on all exchanges (my guess) on average something tells me it's not going to be all that significant ultimately. My reasoning for this is quite simple. Consider 99% of all crypto tokens, the alts, they make up just 40% of the overall value of the crypto market. 

Now consider all tokens, other than teh top three, and that figure drops to just 27% of the total market cap of all of crypto. Therefore if we consider just the alts this portion of the market is less significant. And so theoretically we could confine any significant price movements to the top three. Those large holders of BTC, XRP or ETH and by that I mean people that have >5000$ *surely* can't leave their tokens on exchanges for long!?

I mean, if you have enough knowledge and faith in crypto that you're gonna spend that much on it you're also gonna have a ledger!! Just my opinion. So what's left over on exchanges will be fairly insignificant in the grand scheme of things. 

Those people with huge amounts >$100k using custody services are probably not going to fall into this category either. Reasoning here is that becoming a regulated custody service is a. Very rare and b. Heavily scrutinized. And at the moment large custody services won't take the risk as becoming licenced would have been very difficult in this climate. 

The biggest risk I do see, and again it's fairly significant, is probably tether. Unregulated, not audited, not transparent, and also incompatible with hardware wallets. Now that I could see imploding leading to a sharp drop in the overall crypto market cap... However everybody already knew this and I imagine exchanges will have been getting their s&-# together in the run up to the 3rd imho

So in summary, will this change the price. My answer, yes but only very marginally. Perhaps 2-4%. Indistinguishable from normal fluctuations. 

Share this post


Link to post
Share on other sites
1 hour ago, whiteout said:

Most people who hold coins on exchanges already will just ignore this even if they hear about it.

I tend to agree with this view.

Share this post


Link to post
Share on other sites

And even more people just won’t hear about it. There is a ton of crypto in accounts where guys own a few hundred dollars worth (most of them invested a couple of grand last year on the way up or at the top). Those guys aren’t even looking at this space anymore and unless they hear on the news that the industry is pumping again, they won’t be back. 

Share this post


Link to post
Share on other sites
On 1/2/2019 at 12:37 AM, Eric123 said:

Here is the Question.  Have exchanges been inflating the supply of cryptos and thus lowering the price by trading in assets they don't have?  Rehypothecation - is basically what the CBOE furtures are, actually they are worse because on for their futures no bitcoins are owned at all.  

https://www.ccn.com/rehypothecation-more-about-the-wall-street-practice-that-could-ruin-bitcoin/

Well we will find out.  On January 3rd Trace Mayer is calling for everyone to remove their cryptos off exchanges.  

https://medium.com/@eljuangalt/proof-of-keys-intentional-crypto-bank-run-4-step-survival-guide-4422b7c0e0d8

In my opinion this is a great idea.  All the manipulation that is occurring will stop immediately.  It wont matter how much money you have if you don't have the actual coins.  When the withdrawals happen the exchanges that have be rehypothicating cryptos will be broken and the fraud will end.  This is a awesome way for the community to show wall street and the traditional financial markets that even though their friends in the Central Banks can create as many dollars, euros, yen, yuan, etc., as they want, they are powerless against crypto!!!!  

Are you participating in Proof of Keys?  All my XRP are already off exchanges but I will be moving the rest of my coins off.  Any thoughts on price. I don't see how this can't raise the price of cryptos as people will learn how scarce they really are.

Thoughts?? 

 

All my XRP is on my Ledger Nano or Toast Wallet.

Share this post


Link to post
Share on other sites
Sign in to follow this  

×
×
  • Create New...