"Bad News For Thousands of Crytpo Investors: They Don't Own Their Accounts
Many on Hive talk about "Owning" your account or Owning your crypto. As it turns out that is a very relevant discussion point, especially following the ruling on Celsius's network this week.
Headline from The Washington Post. Source: WA Post
The article and the facts support the idea that users of the networks lost their money and had real fiscal damages, however, they will have no recourse available to them do to some small print in the "User Agreement" most people sign without reading.
The article from a mainstream media source seems to suggest that it was always the plot of the company to fleece it's customers, but I'm not sure it was intentional, but rather more likely a good idea, without sufficient risk management or planning for Bear Season.
As you would expect the article closes with a summary of how the end users will not regain their funds and how regulation is needed.
Personally, I think if end users had done proper due diligence, they would have carefully considered how much of their funds to keep on the platform, and users should definitely understand what each project's ability is to cover funds during a bear cycle.
On hive you aren't depositing your funds to any place but the blockchain it's self, and while we have seen instances in our system of funds tampering on specific accounts it does matter that it takes consensus and time to make any changes that could impact your funds.
Many people underestimate the genius of Hive due to being able to keep your money ON the blockchain and transact with many applications, a much more decentralized and secure approach to utilizing your funds while retaining possession of the keys!
People like to ask.. "What's in your Wallet".. but a more relevant question right now is "WHERE IS YOUR WALLET".
Be careful out there, high return investment comes with high risks. 100 percent of the time.
Other Times I've written about Celsius.
Lending Giant Celsius Halts Withdrawls.
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Never trusted centralized exchanges as a safe place for crypto. Complete your trade and get the crypto out right away!
Good advice.
This is the nail on the coffin. Let’s hope people remember this next bull market.
They will not, and new newbies will enter the space.
Sad but i think somewhat expected. Keep your funds safe and your keys even safer
True, we know some would fold and I learned from Coinbase's UA to check to see who owns your funds.
That's whats up! Gotta keep control of "your" assets at all times, make sure to read the small print! Hive is a genius solution, just make sure to keep them keys safe!
Exactly that.
Not your key not your crypto!!!
How many times do people need to be told before they smarten up!
Celsius was offering unrealistic yield, now we know why!
I guess sometimes it takes a loss to learn a lesson
I think we're already in that point in time the trust for centralized exchanges will gradually die. It might take time, but DEXs will ultimately win.
Very risky out there for sure. Even here on Hive, we need to be watchful, careful and take all the precautions when it comes to managing our assets on the cryptospace
Absolutely
Pulled everything out from exchanges and never had anything on Celsius. I'm afraid of lending platforms, be it crypto or P2P.
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I leave a bit on for quick trades, but I also know it is at risk at all moments
Everything is at risk on any exchange at the moment. That is sooo true.
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Its a scary but interesting financial world out there. The age old sayings of "don't invest what you aren't willing to lose" and " don't trust anyone" (in this case anyone with your currencies) come to mind.
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Absolutely, I always chuckle at the victim stories of "Bob" who invested all of his worldly possession into some shady project and everyone wants you to feel sorry for Bob.
lol.. I usually feel like Bob is kind of an idiot who needed to learn a lesson.
I don’t keep over $500 on my exchange at any time for that reason. My crypto is held in wallets. But that is very good advice.
Good for you!
It is kind of sad, people will always fall for the exchange trick of highly unsustainable yields. This set of users will learn and new sets will fall some other time.
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I have never used any centralized exchange to hold my crypto and whenever I have to deposit/withdraw in crypto, I use P2P and I think this is convenient and that's how decentralization works.
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I originally did use Coinbase and feel like it was pretty safe, needless to say, I'm not doing that anymore.
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It's a rough lesson for anyone who had funds there and that is why I think most people will never look at centralized exchanges again. Having the keys over your crypto is going to be important going forward.
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Really tough lesson and very much.. learn as you go...
Not your keys; Not your crypto! I have been telling this for a long time. Even FTX operations were only tangentially related to cryptocurrency. These centralized exchanges are very much similar to the traditional institutions cryptocurrency is supposed to move away from.
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