this smells like FTX all over again
That really does signal some brass ones, straight out telling people you are insolvent on your web site. It leaves me thinking either they are supremely confident that they will continue growing their asset base, or that they don't actually understand what insolvency is with regards to a bank.
Neither is terribly comforting for their investors and customers, I imagine.
Always kind to share, even though, at what point can people be expected to do more dur diligence
One of the big arguments against FDIC is that by insuring deposits, you remove incentive for bank customers to actually research and scrutinize the institutions holding their money.
The government coming in and saying “nah just trust me, it’ll be fine,” doesn’t work nearly as well as having competent depositors holding their bank to account. Of course, the latter requires a financially literate population, and some due diligence...
Whatcya' gonna do when they come for woo? All these exchanges are ponzi schemes backed by two shitcoins. Their proprietary shitcoin and the CIA's proprietary shitcoin - USDT being used for their global payoff, bribery, extortions, and money laundering schemes, not just in Ukraine. Once they destroy Circle, and Binance's stablecoin with help from the SEC and USDT reaches 60-70% of stablecoin transactions they'll pull the rug on all of it for Fedcoin.
The old joke about the definition of insanity comes to mind...
Crafty Chinese fuckers
Your whole thesis is based on the custody ratio?! 😆 That's the amount of money that's stored at a third party (Qredo if I'm not mistaken). They also got assets in their exchange wallet (duh)!
If you check their live balance sheet and exclude the WOO token they stil got 129.3% assets to cover liabilities... you sir are fudding based on assumptions and wrong interpretation of numbers.
You need to mention about Reserve ratio instead of Custody ratio
Can you explain what custody ratio means? It looks to me as if assets exceed liabilities. See https://woo.org/proof-of-reserves?utm_source=substack&utm_medium=email . The big questions I would worry about are:
1. Can anyone trust Taiwanese accounting? Is it audited? Is the Taiwanese SEC reliable?
2. Can Taiwanese corporate law be trusted to deal with things like conflict of interest?(Probably not-- US corporate law is better than most of the world's).
3. What is the market value of the assets they list? The Substack here does note that their own bitcoin is a big part of their assets, which may be made of air. Is it?
What is remarkable here is that it seems customers are told up front that Woo will lend their money to Kronos.