Join 94,154 users already on

LUNA Shows Dangers Of Holding On Exchanges

0 3
Avatar for R23
Written by   27
1 month ago

This Luna catastrophe has brought along with it quite a few valuable lessons for investors. Beyond the concept that investing all of your eggs in one basket being dangerous, we have seen a lot of centralized damage control playing out and trapping some users in the process.


We saw Binance delist LUNA from the perpetual exchange and also freeze up the purchase and sale of LUNA on the platform. With this, it also froze withdrawals for a time and users were pretty much stuck to watch their holdings go up and down in value with no way of selling them off or shipping them somewhere that they could have sold them.

While this may have actually been done with good intentions (i.e. helping people control their risk), it handcuffed users and it brings up that old point of "not your keys not your crypto" as the CEX decided when you could sell again.

Other Exchanges

I heard that this happened on KuCoin in basically the same way. On Coinbase, Luna was delisted and the tokens that I had there are no longer available (though it was very few and not worth whining about). I heard that the same thing happened on UpBit, Kraken, and more as CEX's seeked to react to the volatile dumping of a once top-10 cryptocurrency.

This probably could've happened to anyone and it will likely happen again in the future as long as people are storing their crypto on centralized exchanges. I truly believe that the intentions of the CEX's are usually to protect the users, but similar to things that happened with Robinhood during the Gamestop pump, I just think that these decisions should be left for the user to make.

The whole reason that I love cryptocurrency is the fact that responsibility falls on the individual and that financial freedom of movement comes at the cost of the chance that an error could be made. I am willing to take the risks and that is why I don't store my cryptocurrency on exchanges despite the ease of use in doing so.

Be careful where you decide to keep your assets and know the risks of keeping it somewhere that you don't have 100% control over.

Come talk basketball on Dunk Social!

Links and Connections:
Join me on Splinterlands exploring blockchain gaming
Get paid for your search results with Presearch
Follow me on Twitter/Instagram: @ Rob_Minnick23
Hive: @ rob23
NEW TRIBE: @dunksocial
Join me on Torum
Check out Cake DeFi for staking rewards
Bitcoin Cash Apps: @ rob23
Join me on Publish0x to talk crypto

Who I am:
My name is Rob and I am a financial analyst with interests in cryptocurrency and blockchain. I have enjoyed my time thus far engaging with Web 3.0 and am looking to continue learning more and sharing what I learn through my experience.

$ 0.84
$ 0.84 from @TheRandomRewarder
Avatar for R23
Written by   27
1 month ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.