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0 sats \ 1 reply \ @mallardshead OP 14 Feb 2023 \ parent \ on: Coinbase, Kraken, Binance-->their business models don't work anymore. bitcoin
Elucidate.
Sure. Those platforms are highly dependent on centralized liquidity providers that represent a single point of failure.
Swan lost Texas recently afaik since Prime Trust (temporarily) lost money transmitter licenses there.
If I were a regulator trying to choke the market, I would go after the businesses that enable MTL "pass through" where companies can build a widget on top of the brokerage without MTL.
Check out article I wrote. Liquidity fragility to me is no different from overall fragility since it means single point of failure for falling out of compliance. Some brokerages as a service might be more robust than others, but all of it is somewhat opaque.
https://bitcoinmagazine.com/markets/ftx-collapse-cause-huge-bitcoin-price-spike
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