Holders need to keep their virtual currency themselves and only transfer it to the exchange when selling? Recently, Binance has had several so-called compensation plans, and I am actually a bit confused. Traditional financial investments have been around for a long time, and I haven't seen a company make such a big move, but is this really the right thing to do? Perhaps it's still up to personal judgment.
I remember a year and a half before the Lehman Brothers incident, I left my job in bank wealth management to open my own shop. Before I left, clients asked me why I looked so busy at the bank and my performance was good enough for the company to send me abroad; they said it wouldn't be a big deal to leave the financial industry. I said it was due to family reasons and career planning. After opening the shop, some friends came to chat with me, and I mentioned that I was a bit worried; I am a financial advisor, and I can only sell hard, but my doubts about the products do not disappear because of sales. I remember there was a product popular at the time called linked bonds, which was actually a packaged product. Because it is packaged, there are actually issues that need to be researched deeply, and the key point is that I still don't know how to research it. I once asked the project manager at the head office how a certain product was actually done. At that time, the one-year fixed deposit in New Taiwan Dollars was about 1%, and the product was packaged to mature in four years, with semi-annual interest payments, and the annual interest rate seemed to be 4% (or 6%, I am not sure), principal guaranteed and interest guaranteed. This product was almost invincible; in fact, by the end of his explanation, I still didn't understand it, but he said a classic line: many banks are selling it, and if we don't sell it, the funds will run to other banks, so why don’t we sell it? In the end, many fixed deposit clients went to subscribe, and when Lehman Brothers happened, many investment products were affected. This product was ultimately confirmed to be a Ponzi scheme, and the so-called rewards of travel vouchers were stable, but in fact, there were no investment products at all. One after another, they were sold, and the quotas kept increasing. The interest was just paid using the principal of the later participants, and eventually, it could no longer be paid, leading to an explosion of problems. Many financial advisors therefore had legal disputes with clients.
Binance is a very good exchange; I hope it can be a trustworthy exchange. Risky products can be offered, but the risks need to be communicated. It shouldn't just keep encouraging or marketing reasonably, and then use airdrops as a subsidy after problems occur. For funds that are simply invested in spot transactions and kept in exchanges, will they face a funding gap due to systemic risks or large withdrawals? Investment is always about weighing risks against rewards. $ETH $SOL $BNB
