Might be. I am getting my coins from an exchange and sig camp payments. I don't have any other coin income. So If my sig camp payments are tainted, It might cause me problems. I heard binance locking people's accounts randomly without a reason and these people did their KYC already. That might be the reason why they do that.
That might be a good reason to dump Binance.
So, when cryptosize above said, people can take them bad coins for a discount, his example already violated the description of fungible.
No, it didn't. Just because there might be dumb people who want to trade their "tainted" coins at a 50% discount, doesn't make it the truth. These people can use decentralized solutions to trade them anonymously with no "discount" BS.
And when nobody wants these tainted coins, that means these coins can't act as currency anymore. If nobody wants them, they ain't fungible. They can't perform. They can't function. (except for you, to you they are still fungible.
To me, and to every single person out there who's using decentralized exchanges, or exchanges which don't discriminate their traders based on inaccurate blockchain analysis.
And in that case, the police would knock your door... you'd have some explaining to do.
For once more, that's a
privacy problem, not a
fungibility problem. The fact that I'd be directly tied with ISIS doesn't make the coins less valuable than the rest.