So coin exchanges hold coins. I get that. What happens when people

Shhhh...shhh....

>>2065086
This is a serious question. I can't believe nobody has noticed this obvious flaw.

>>2065075
Exchanges are financial institutions, regulated like banks. They have investments in the business that give them liquidity. They also have a credit line they can tap into. They also make bank by charging fees on every sale. So they have a good buildup of fiat in their bank account, because that's how they make money.

So, no they wouldn't need to sell customers coins. Those get audited, atleast at the good exchanges.

>>2065091
Yeah i hear ya, but if shit hits the fan im sure the tos has them covered. Theyre not taking on billions in loans to cover our asses in a catastrophic collapse.

Plus the shh shh comment is just as serious. Crypto is highly susceptible to that kind of panic..

>>2065091
People have. You're not the first. Basically we are all potentially sitting on a 1929 style timebomb, but we're too busy getting rich to realize it. :)

>>2065075
It's the same thing as a bank, they just know it's not going to happen, banks are a confidence game and they only work because most people don't know how precarious the whole system is

>>2065091
Same thing that has happen to banks. Exchange close down and everyone loses their money.

But people's greed is greater than their fear so everyone will still continue to use the exchange.

Luckily for you.. there's something call Waves. It's design to be an exchange but YOU hold the funds, not the exchange so that scenario you describe

>>2065100
I only made this topic because of recent news with frozen assets in several exchanges. If there's a real shit hits the fan scenario, an exchange can go bankrupt overnight if everyone tries to convert to USD/Euros/Whatever Fiat.

You idiots are forgetting that everyone cant cashout at the same time.

If you sell, someone else has to buy. If everyone sells, price keeps going down.

When someone buys, exchange gives you their money, not its own. You know that's why its called an EXCHANGE!

>>2065099
>regulated like banks
NO. There is no regulation on crypto exchanges. They just have to comply with KYC + AML in whatever country they're operating.

>>2065140
Kek

>>2065140
this board is unbelievably retarded at times