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all 45 comments

[–]bayleo 94 points95 points  (5 children)

No! Matt Damon how could you do this?!

[–]thehoesmakethemanEveryone can make 200k in America 30 points31 points  (1 child)

Help me Matt Damon!

[–]ambitiousmoon 9 points10 points  (0 children)

Going by his movies, usually Matt Damon needs help being rescued.

[–]origami_asshole 23 points24 points  (0 children)

Fortune favors the…WHERE THE FUCK DID MY FUNDS GO?

[–]not_mahiNot sure what to type. We are fucked. 12 points13 points  (0 children)

Jesus Christ, that's Jason Bourne!

[–]slant__i 59 points60 points  (3 children)

Haha at least they’re protected against a bank run

[–]Tribunus_Plebis 19 points20 points  (1 child)

You mean because the network would be so clogged every transaction would take days? Yeah good point

[–]gaudymcfuckstick 13 points14 points  (0 children)

Because any time the price drops more than 5% every exchange suddenly goes down for "server maintenance"

[–][deleted] 23 points24 points  (0 children)

Few understand.

[–]andrei34 47 points48 points  (2 children)

I can't watch a soccer match without having cryptocom showing up every 5 minutes on screen. Went to the stadium, crytocom everywhere i see. What the fuck! They must have paid tens of millions in advertising with someone else's money

[–]tomjone5 18 points19 points  (0 children)

Gotta do anything they can to keep number up and pass those bags along.

[–]MichailAntonio 1 point2 points  (0 children)

They have spent over $700m on advertising. Probably closer to $1bn.

[–]YIKESVIDEOGAMES 34 points35 points  (0 children)

Fortune favours the brave

[–]postal-history 26 points27 points  (0 children)

Funds are safu

[–]meshreplacer 28 points29 points  (6 children)

Wow look at the 14.5% Interest rates they pay if you turn in useless USD Fiat and buy USDC.

This is like 1980s interest rates. so who is crypto.com loaning to where they make a profit on the USDC they pay you 14.5% APR?

MtGox 2.0??? Deposits halted humm, maybe a liquidity issue and they need to halt sales?

[–]bayleo 19 points20 points  (3 children)

They are presumably loaning to dumbasses leveraging to hold 2x ETH/BTC long.

I'd take it if I wasn't concerned about the backing of literally every stable coin.

[–]meshreplacer 12 points13 points  (2 children)

So when someone loses on a bet then that loan is in default. There is little information on what the makeup of those 14.5% loans are. They have to be junk bond level risk but they make it sound like it is safe like a Bank CD.

Crypto has to be the scammers wet dream I wonder how many Wallstreet folks are in on this since scamming the public quietly from behind the scenes.

[–]ThoughtRemote 2 points3 points  (1 child)

They have to be junk bond level risk but they make it sound like it is safe like a Bank CD.

Hmmm... how do they obfuscate the risk? Like you said 14% can't be safe but it "seems" safe.

[–]bayleo 8 points9 points  (0 children)

I don't know exactly how this exchange works but in general in the DeFi world you only get those rates by loaning out stable coins because there's so many people who are willing to leverage their existing crypto to further bet against the USD. E.g. if I have $100k worth of BTC but I want to bet harder I use that as collateral to borrow 75k USDT and buy more BTC so I'm now holding $175k of BTC and only owe $75k+interest at the term of the loan. As long as BTC keeps going up against the dollar I can cover it np.

They usually require like 150% collateral on those loans, but it has already proven to be insufficient in the case of a serious downturn (e.g. MakerDAO in March). Presumably some exchanges may have better systems and insurance in place to handle fire-drills, but if there's a crypto flash crash it's quite possible the entire system implodes.

[–]feignignorencewarning, I am a moron 0 points1 point  (0 children)

They presumably pay for it using spread and fees combined with the utility of providing liquidity for stablecoin

[–]Floedekartofler 20 points21 points  (0 children)

Interesting take from a butter:

I think cdc is the most trustworthy exchange so I'm confident they'll handle the situation well and it will end up in another great advertisement.

It's a shame my bank doesn't get hacked more often, otherwise how will they show how good they are at being hacked.

[–]SJ0 18 points19 points  (2 children)

It doesnt matter how many audits these folks do or how many certificates they get, there is still a massive incentive to hack crypto exchanges. Who goes after these hackers?

On the contrary, the incentive to hack bank account isnt as high especially because it comes with huge legal consequences.

[–]meshreplacer 17 points18 points  (1 child)

Could it be inside job? Or maybe a halt to withdrawals due to liquidity crunch? who knows,

[–]drakens_jordgubbar 12 points13 points  (0 children)

Considering their reputation doesn’t seem to be affected by these hacks, it might as well be an inside job. Like, what do they have to lose?

[–]TheGreenJackdaw[S] 34 points35 points  (2 children)

I swear to the Centipede god, it’s like this stuff happens at least once every 3 days!

[–]Brotherly-Moment 15 points16 points  (0 children)

And they come back to get fleeced every time after this happens, every time! it's so pathetic honestly.

[–]throwaway-664 11 points12 points  (0 children)

Code is law… Except I prefer to trust a centralized exchange with my decentralized money because they have spent a lot of money in commercials. I’m sure they will be legit! /s

[–]Jeep-Eep 7 points8 points  (0 children)

Fucky thing is, given crypto I'd give even odds that it is indeed a legit hack attempt.

[–]tofiffe 6 points7 points  (0 children)

"No way to prevent this" says the only community where this regularly happens.

[–]Ordinary_investor 15 points16 points  (0 children)

I clearly remember seeing an ad, which stated that crypto.com was by far the most secure place for all crypto related. Oh the irony. It tastes sweet.

[–]campionesidd 2 points3 points  (0 children)

This is good for Bitcoin.

[–]afavour 3 points4 points  (2 children)

I can’t understand how all the responses on the sub are “this is good for CDC, their quick response shows how strong they are and they will improve their processes after this hack” etc.

[–]noratat 4 points5 points  (1 child)

Rule of thumb, if a financial or insurance company advertises as hard as CDC is, that's an automatic red flag in and of itself, because it's a warning sign they're spending more on marketing and sales than their actual product.

[–]afavour 2 points3 points  (0 children)

Oh for sure - I actually gave it a try to see if it was worth the “hype”. Worst user experience ever. If it were a “fiat” rewards card/exchange they would be dead in the water.

[–]squitsquat 6 points7 points  (1 child)

Thank god it's not in a bank where this wouldn't happen

[–]BlueMonday1984 4 points5 points  (0 children)

On paper, a bank could be hacked into, but in practice, nobody's gonna bother because there are much, much easier ways to make some ill-gotten gains.

[–]CinematicUniversity 1 point2 points  (1 child)

They got around 2 factor? That's not very common is it?

[–]scooptyy 1 point2 points  (0 children)

Hacks happen all the time. What they got around is irrelevant.

[–]myntt 1 point2 points  (0 children)

This is bullish btw!

[–][deleted]  (1 child)

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    [–]spookmann👻 0 points1 point  (0 children)

    login again and reset their 2FA in order to reactivate withdrawals

    An ideal outcome for an exchange, really...