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If You Own Crypto, Do This Now!
Why and how to get your crypto off exchanges
Yesterday, one of the largest cryptocurrency exchanges faced near collapse.
FTX, founded by billionaire Sam Bankman-Fried, experienced a severe liquidity crunch, causing panic among investors.
This caused the exchange to halt certain withdrawals and increase fees dramatically.
Sign of the times
FTX isn’t the only crypto custodian to halt customer withdrawals this year.
Celsius, a crypto lending platform recently filed for bankruptcy, leaving customers unable to access their crypto funds.
In the case of both Celsius and FTX, the issue of halting withdrawals has been caused by a lack of reserves to back the customer deposits on their balance sheets.
That is, their liabilities to customers were greater than their assets.
This is actually normal for regular banks, but banks are backed by insurance, and ultimately the government.
This is not the case for crypto.
What to do?
All of this is only a problem for investors if they leave funds on exchanges.
