Calls are gaining momentum in the crypto community to withdraw all their cryptocurrency assets from exchanges

On the popular Reddit forum, a user with the nickname sotashi left a message in which he urged to celebrate the 10th anniversary of Bitcoin in a very unusual way, namely, to withdraw all of its assets from centralized exchanges in order to check their solvency.

“I urge all those who keep their cryptocurrency savings on the stock exchanges to withdraw them and thus check not only the network operability, but also the availability of the necessary amount of money from the platforms,” the statement says.

Nobody knows the author of the message, before he didn’t stand out in the cryptocurrency community, but many note that rumors that have been circulating for a long time materialized in his message. In fact, he calls for a “raid on the bank” to check the solvency of centralized sites. Other users call this step “proof of trust.” It should be noted that a similar idea was voiced a bit earlier by the well-known activist Trace Meyer.

The history of Bitcoin has not a small number of ups and downs, most of which are associated with cryptocurrency exchanges. In this regard, many people cause mistrust, and Vitalik Buterin, the creator of the second most popular cryptocurrency Ethereum, at one of the conferences said: “I wish that all centralized exchanges burned in hell.” Indeed, a company with a single control center sooner or later begins to cause concern due to the opacity of its actions. For example, MtGox for a long time did not have the security of user assets, but nonetheless continued to function. The result of this story, we all know very well – the bankruptcy of the company and the subsequent proceedings in the Japanese court for insolvent debtors, which has been lasting for 4 years. The BTC e exchange and its reincarnation in the form of WEX went a similar way.

At the moment it is not known how the withdrawal of funds from all exchanges will be carried out. Some sites use a two-tier system on hot wallets for about 5–10% of the total funds, and all other savings are safely hidden in cold storage under additional protection. Although it is still worth making an adjustment to the fact that it is unlikely that a large number of traders actually decide to withdraw money.

However, if we assume that many users will still apply for the withdrawal of all their assets, then the hot wallets will become empty quickly enough, but then events may develop in different ways. Unscrupulous exchanges are likely to begin to take time and say that they are not able to process a huge number of withdrawal requests so quickly and they need more time to transfer funds from cold storage.

Particularly closely, users follow the cold wallet of the Bitfinex cryptocurrency exchange. Its balance increases or decreases for a relatively short period of time, although these changes are not significant. All recent transactions were near zero, and the last real activity was still 2 November. Then 1337 BTC came to the wallet.

Recently, the cryptocurrency market has seen a sharp increase in volatility and trading volume. Typically, such changes are accompanied by increased amounts of deposit and withdrawal of funds, which would undoubtedly have had an impact on the observed wallet.

However, this did not happen. Perhaps this wallet is only one of a few, and perhaps the stock exchange managed to get by with operational reserves. For example, according to the data available in Bitfinex ETH wallets at the moment is about 5. Therefore, we can assume that Bitcoin is also distributed between several addresses. To date, there is no information about the delays in the output of cryptocurrency from well-known exchanges. Most likely, no problems will be observed on January 3.

There is also a version that this action is specially organized by the “bulls” in order to force the bears to withdraw money from the exchanges and thereby stop sales of cryptocurrencies.

In any case, it is worth bearing in mind that these actions can be costly for the exchanges, and for some time there will be a sharp drop in trading volumes and a concomitant decline in the income of trading platforms.

Yeah, it turns out that half will withdraw their funds, and the rest may not be enough or how? All the same, everything will not do so, and if they do, it will certainly be something.

Very interesting suggestion. I think that many have already withdrawn their funds or are going to do it in the near future, because no one expected such a development of events.

Here you need to look more than one year and not even two, because very large prospects should be and you need to make plans for at least 5 years, I think.

What difference does it make, how much money you will lose, because at least there is a chance to get some money back, but if it is bankrupt, then you will definitely like the first option.

So far, nothing terrible has happened, but there are no changes for the better either. You can say. that in January all remained in their places.

Miners and depositors should decide for themselves what will be better for them. Here everyone decides for himself. Personally, I listen to the recommendations, but I don’t do so in a straightforward way to do everything according to a template.

Anyway, now you can trade not only Bitcoin, because of which, in fact, all these analyzes began. So it may just bid this crypt will fall.

If mining becomes unprofitable, then just everything will go on trading cryptocurrency. It is very convenient and not less profitable. Need to be able to rebuild.

Then the exchange will close everything. Well, maybe not all, but many will leave the market, because it is not profitable to simply exist if the volumes are reduced to such an extent.

Since the collapse in prices for Bitcoin and all other cryptocurrencies, not a single exchange in my opinion has been closed. This suggests that more property is still stable.

At the end of last year I also had such a desire, but now my opinion has changed a bit. I think that this may result in something more normal, if you don’t give up, of course.