Antonopoulos: Custodial Crypto Funds Replicate Vulnerabilities of Traditional Banking
Andreas Antonopoulos · 796: Crypto: Kim Jong-un Crypto Funded Nukes vs. Billions Out of Poverty · Sep 28, 2017 · at 25:28
Technologist Andreas Antonopoulos discusses the architectural risks of centralized crypto hedge funds with host Nathan Latka.
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“So what are these crypto funds doing? They're basically holding crypto for thousands of investors on their behalf as custodians. That's business as usual. That's traditional banking only now with a new currency. The problem with that Is that if they hold the currency of a thousand customers, their security has to be a thousand times better than each of the customer's security in order to make sure they don't lose that money or have it stolen from them. And most companies can't do that.”
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