/biz/ - Business & Finance

>>50103535
I haven't seen or used one in years, but some exchanges I used back in 2019 to smuggle obscure shitcoins had sections on their site for yield with ridiculous rates. They would have "trading bots", supposedly, generating 15-20% yields on stuff like BTC, and that was back in a highly illiquid market as well. You could deposit coins in there which would lock up, then can unlock them after a cooldown period. I tried to find the name of the exchange I used the most back then but it probably doesn't exist anymore because it was run by scammers all along. These types of exchanges were never safe to begin with, basically just honeypots built by chinese software engineers who know how to copy/paste some other exchanges frontend with a shitty, buggy as fuck attempted copy of the backend.

Kucoin looks nothing like these sites, drives tens of billions in volume daily (much of which is probably wash trading by MMs, just like on binance), and the yields offered on borrows are done the same way as bitfinex or binance - through collateralized lending to other traders who utilize leverage. Is it somewhat shady compared to binance or FTX? Yes. But it's not absolute scam tier from a product development perspective - it feels almost exactly like binance front to back, and that means they've invested quite a bit in hiring good developers. Can it be a scam in other ways? Absolutely, but what's the incentive compared to what they have now? They literally print money by sitting there and managing a collateral engine using other people's money as the input. Doing some dumb shit to ruin millions per day in revenue would require a massive reward and comes at a high price as you are hunted down by FEDs worldwide.

This rumor is just an example of how FUD is becoming entrenched in the psyche of crypto market participants. The FUD is becoming self perpetuating, self fulfilling in its prophecies. Anyone who is weak in such an environment will be culled. Kucoin doesn't look weak.

>>27554593
>NOOOOOO YOU CANT JUST MAKE 10x A YEAR WHEN COMPOUNDED OVER A DECADE
>IT'S TOO RISKY PLEASE NO
>PLEASE
>WE PROMISE TO KEEP YOUR MONEY SAFE