Post
Topic
Board Beginners & Help
Re: What's the biggest taboo about exchanges no one ever talks about?
by
Cryptocnnon485
on 04/10/2019, 18:41:55 UTC
I have been reading more and more about them and the things that happen in the shadows, if you what anything to share please do for me and others to read in one place Smiley

One practice to note is the aptly named shadow banking. Chinese exchanges OKCoin and Huobi were caught secretly borrowing CNY from their depositors and using it to purchase high yielding investments like Chinese debt instruments. You can read more about that here. Arthur Hayes from BitMEX actually speculated they were shadow banks years before evidence came out.

WOW! thanks for sharing! I have never seen anything like this. Actually that makes sense how the zero commission exchanges make money, but the scarier question is if this is only the Chinese functioning model or this might be more widespread?