> What are crypto exchanges fundamentally doing differently that they are suddenly losing money?
Fractional reserve banking. Exchanges now offer traditional banking services such as savings accounts and loans.
They are unregulated banks with none of the insurance and government protections to bail them out. They cannot resist the temptation to gamble with the vast amounts of money they are sitting on. Only a matter of time before they lose it all and people can't withdraw their cryptocurrencies because there's no money in the reserves.
Fractional reserve banking. Exchanges now offer traditional banking services such as savings accounts and loans.
They are unregulated banks with none of the insurance and government protections to bail them out. They cannot resist the temptation to gamble with the vast amounts of money they are sitting on. Only a matter of time before they lose it all and people can't withdraw their cryptocurrencies because there's no money in the reserves.