We Still Need More Transparency In Crypto Exchanges – Vinny Lingham
Vinny Lingham has call on all crypto currency exchanges to be transparent in their dealings especially as it involves trader’s deposits. This was made known to cryptonews9ja through Mr Vinny official Twitter handle
I suspect there are number of crypto exchanges that are currently financing their operations by running fractional reserves and utilizing deposits for paying for operations. Ironically, we still need more transparency in crypto. “Not your keys, not your coins”
The Civic Coin CEO who did not however mention names of any exchange carrying out this fraudulent practices, these practices he wrote, will cause imbalances in the near future;
I’ve been very suspicious of the fake trade volumes that have been showing up. As more and more legit and regulated exchanges start trading crypto, it will cause a real supply demand imbalance and a run on the exchanges, so to speak. That’s when things get really interesting.
Mr Vinny added as time goes on these fraudulent acts carried out by these exchanges will be exposed;
When depositors do a run on a particular coin, and want to move to risk free exchanges with higher prices, the fractional exchanges will have to deliver those coins to their customers and if they can’t that’s when it all begins to unravel…
The South Africa born Civic blockchain CEO who recently got his coin listed on Coinbase has call on exchange to checkmate and be transparent their activities so a better and solid crypto market can been enjoy in the future;
This is just a thesis linked to how things starts to decouple and we have a healthier, functional global crypto market. A solid foundation will aid us immensely in building towards the next bull market run – which could take months or years. I prefer that we clean up before then!