{"id":8044,"date":"2022-11-17T11:01:41","date_gmt":"2022-11-17T04:01:41","guid":{"rendered":"https:\/\/news.bitcoinvn.io\/?p=8044"},"modified":"2024-05-13T07:42:24","modified_gmt":"2024-05-13T00:42:24","slug":"ftx-collapse-update-from-bitcoinvn","status":"publish","type":"post","link":"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/","title":{"rendered":"FTX collapse &#8211; Update from BitcoinVN"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Phew&#8230; where to even start?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Behind us lies the certainly most eventful week of the past decade with unbelievable revelations coming out on an almost hourly basis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re looking for a succinct summary of the events of the past week, <\/span><a href=\"https:\/\/odysee.com\/@FreedomVideos_and_more:2\/ftx-alameda-short-story:b?r=CFxM7qdCpE2YtVjLg71YEtkqd4qiHwac\"><span style=\"font-weight: 400;\">El Risitas has you covered<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time markets again took a nosedive as the fear of more forced sellers entering the market shook confidence.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8034\" src=\"https:\/\/news.bitcoinvn.io\/wp-content\/uploads\/2022\/11\/FTX-pha-san-2.png\" alt=\"\" width=\"916\" height=\"214\" srcset=\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-2.png 916w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-2-300x70.png 300w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-2-768x179.png 768w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-2-696x163.png 696w\" sizes=\"auto, (max-width: 916px) 100vw, 916px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Good time for steady stackers, not such a good time for people who were operating on margin.<\/span><\/p>\n<h2><b>Impact on BitcoinVN<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As we mentioned previously<\/span><a href=\"https:\/\/twitter.com\/Bitcoin_Vietnam\/status\/1590184006729216000\"><span style=\"font-weight: 400;\"> via our official Twitter account<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/bitcoinvn.io\"><span style=\"font-weight: 400;\">BitcoinVN<\/span><\/a><span style=\"font-weight: 400;\"> did not have any exposure to FTX or Alameda.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8035\" src=\"https:\/\/news.bitcoinvn.io\/wp-content\/uploads\/2022\/11\/FTX-pha-san.png\" alt=\"\" width=\"917\" height=\"551\" srcset=\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san.png 917w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-300x180.png 300w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-768x461.png 768w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-696x418.png 696w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-699x420.png 699w\" sizes=\"auto, (max-width: 917px) 100vw, 917px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Now the question of course is: Can you trust us that this statement is truthful?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The answer is pretty simple:<\/span><\/p>\n<blockquote><p>You should not need to trust anybody with your money!<\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">And while you *can* store your assets with BitcoinVN &#8211; we have always been encouraging our clients <\/span><a href=\"https:\/\/news.bitcoinvn.io\/not-your-keys-not-your-coins-securing-your-bitcoin\/\"><span style=\"font-weight: 400;\">to learn about self-custody and taking possession of their coins<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any credible platform perceives providing custodial services <\/span><i><span style=\"font-weight: 400;\">*as a liability*<\/span><\/i><span style=\"font-weight: 400;\"> or charges at least a clear service fee for providing such service.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any platform which solicits to deposit your coins with them should be treated with maximum suspicion.<\/span><\/p>\n<h2><b>On Chain Bitcoin vs Paper Bitcoin<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">One of the first things you &#8220;learn&#8221; about Bitcoin is that its value proposition partially stems from its hard-coded, fixed supply of 21 million Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now &#8211; what if we told you that the amount of paper Bitcoin (claims (&#8220;IOU&#8221;)) has likely been rising above 100,000,000 Bitcoin in the last cycle?<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8036\" src=\"https:\/\/news.bitcoinvn.io\/wp-content\/uploads\/2022\/11\/FTX-pha-san-4.png\" alt=\"\" width=\"888\" height=\"201\" srcset=\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-4.png 888w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-4-300x68.png 300w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-4-768x174.png 768w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-4-696x158.png 696w\" sizes=\"auto, (max-width: 888px) 100vw, 888px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">There is a huge difference between having a &#8220;Bitcoin balance&#8221; with a custodial service provider versus actually possessing Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoins whole value proposition goes out of the window if you do not take possession of it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is no limit to how many unbacked &#8220;Paper Bitcoin&#8221; a service provider might sell you &#8211; as long as you do not withdraw your coins.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Only once you attempt to withdraw you find out if you actually bought Bitcoin &#8211; or just financed the vices of some of the more shady operators in the space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As it turned out in the case of FTX &#8211; they did not have any real Bitcoin to back the paper Bitcoin claims their customers had against them.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8037\" src=\"https:\/\/news.bitcoinvn.io\/wp-content\/uploads\/2022\/11\/FTX-pha-san-3.png\" alt=\"\" width=\"913\" height=\"214\" srcset=\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-3.png 913w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-3-300x70.png 300w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-3-768x180.png 768w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-3-696x163.png 696w\" sizes=\"auto, (max-width: 913px) 100vw, 913px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Their customers *thought* they were buying Bitcoin.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But their funds all got funneled into the coffers of some of the more unsavory characters of our time.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8038\" src=\"https:\/\/news.bitcoinvn.io\/wp-content\/uploads\/2022\/11\/FTX-pha-san-1.jpg\" alt=\"\" width=\"909\" height=\"487\" srcset=\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-1.jpg 909w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-1-300x161.jpg 300w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-1-768x411.jpg 768w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-1-696x373.jpg 696w, https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/FTX-pha-san-1-784x420.jpg 784w\" sizes=\"auto, (max-width: 909px) 100vw, 909px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The overall fallout of the FTX collapse has caused widespread damage across the ecosystem.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We know that there are more insolvent entities still operational who are currently soliciting investments and deposits to cover up holes in their balance sheet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the current macro environment this seems rather unlikely to us to succeed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Expect more withdrawal halts from lending platforms, exchanges and other custodial service providers in the days and weeks ahead.<\/span><\/p>\n<blockquote><p>Do not be complacent about it if you have any serious funds with any of these platforms.<\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Educate yourself about self-custody and withdraw your funds before it is too late.<\/span><\/p>\n<h2><b>Where we go from here<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It&#8217;s really pretty simple:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the paper Bitcoin promoters can keep fooling the majority of the people to hand over their money for fake Bitcoin custodied by centralized service providers, the current world order will continue in its path unabated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If however a sufficient number of people demands to have their Bitcoin on-chain &#8211; and keeping their own keys for their own coins&#8230; things will change.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Satoshi built Bitcoin to free humanity from the shackles that come with centralized control over the money supply of a nation in the hands of the selected few.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We are at an extremely crucial point for what&#8217;s ahead for humanity at large.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And while there&#8217;s &#8220;money to be made&#8221; in promoting paper Bitcoin &#8211; we will all pay a hefty price for it in the future if we let these harmful narratives go unchallenged.<\/span><\/p>\n<h2><strong>As for BitcoinVN:<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">We will continue to play our part in building out the basic infrastructure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We are operating <\/span><a href=\"https:\/\/bitcoinvn.io\/\"><span style=\"font-weight: 400;\">Vietnam&#8217;s oldest on\/offramp from\/to VND<\/span><\/a><span style=\"font-weight: 400;\"> , we are aiming to keep our KYC\/AML requirements at the minimum level necessary (to protect ourselves and our users).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We are also operating <\/span><a href=\"https:\/\/btm.bitcoinvn.io\"><span style=\"font-weight: 400;\">a fleet of Bitcoin ATM across Vietnam<\/span><\/a><span style=\"font-weight: 400;\"> which let you in a privacy preserving manner convert your cash into Bitcoin (and vice versa).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We will keep <\/span><a href=\"https:\/\/news.bitcoinvn.io\/neutronpay-raises-largest-funding-ever-for-vietnamese-bitcoin-startup\/\"><span style=\"font-weight: 400;\">investing into payments<\/span><\/a><span style=\"font-weight: 400;\"> and self-custody solutions and infrastructure to increase access to the tools necessary to become self-sovereign.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We will keep supporting Open Source developers and projects who are doing Satoshi&#8217;s work in building out valuable tools &amp; infrastructure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And we will always advocate for people to self-custody over trusting third parties with their savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our future depends on it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The battle has just begun.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Phew&#8230; where to even start? Behind us lies the certainly most eventful week of the past decade with unbelievable revelations coming out on an almost hourly basis. If you&#8217;re looking for a succinct summary of the events of the past week, El Risitas has you covered.\u00a0 At the same time markets again took a nosedive [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":8063,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,10549],"tags":[],"class_list":["post-8044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoinvn-business","category-featured-sub-panel"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FTX collapse - Update from BitcoinVN - BitcoinVN News<\/title>\n<meta name=\"description\" content=\"BitcoinVN did not have any exposure to FTX or Alameda. We have always been encouraging our clients to learn about self-custody...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTX collapse - Update from BitcoinVN - BitcoinVN News\" \/>\n<meta property=\"og:description\" content=\"BitcoinVN did not have any exposure to FTX or Alameda. We have always been encouraging our clients to learn about self-custody...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/\" \/>\n<meta property=\"og:site_name\" content=\"BitcoinVN News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/facebook.com\/www.bitcoinvn.io\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-17T04:01:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-13T00:42:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/ftx-collapse-update-from-bitcoinvn.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Quynh Nguyen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@bitcoin_vietnam\" \/>\n<meta name=\"twitter:site\" content=\"@bitcoin_vietnam\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Quynh Nguyen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/\"},\"author\":{\"name\":\"Quynh Nguyen\",\"@id\":\"https:\/\/bitcoinvn.io\/news\/#\/schema\/person\/e791e268b1e1e5d724f1046a62ddb1ff\"},\"headline\":\"FTX collapse &#8211; Update from BitcoinVN\",\"datePublished\":\"2022-11-17T04:01:41+00:00\",\"dateModified\":\"2024-05-13T00:42:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/\"},\"wordCount\":795,\"publisher\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/#organization\"},\"image\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/ftx-collapse-update-from-bitcoinvn.jpg\",\"articleSection\":[\"BitcoinVN\",\"Featured - Sub Panel\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/\",\"url\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/\",\"name\":\"FTX collapse - Update from BitcoinVN - BitcoinVN News\",\"isPartOf\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/bitcoinvn.io\/news\/ftx-collapse-update-from-bitcoinvn\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/bitcoinvn.io\/news\/wp-content\/uploads\/2022\/11\/ftx-collapse-update-from-bitcoinvn.jpg\",\"datePublished\":\"2022-11-17T04:01:41+00:00\",\"dateModified\":\"2024-05-13T00:42:24+00:00\",\"description\":\"BitcoinVN did not have any exposure to FTX or Alameda. 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