A trading platform willing to put real money into establishing an investor protection fund, what does this imply?



Logical deduction makes it clear. The existence of a protection fund is to ensure that assets are not damaged by platform risks under the premise of no user operation errors. If a platform itself plans to run away with the funds, why would it lock in tens of millions of dollars in risk reserves? This makes no economic sense.

From another perspective, the level of a platform's emphasis on risk management often reflects how many emergency measures it has reserved. Fund transparency and the completeness of protection mechanisms are important indicators of a platform's stability. From this dimension, you can see how solid a platform's true confidence really is.
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JustHereForAirdropsvip
· 01-06 21:44
Running away with the funds and still bothering to set up a protection fund? That logic does hold up...
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FromMinerToFarmervip
· 01-06 21:43
To be honest, I have to question this logic. Locking in tens of millions means they won't run away? Come on, FTX also had a substantial reserve fund back then.
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DefiVeteranvip
· 01-06 21:42
Listening to this logic, there's indeed nothing wrong... but I still want to see the actual reserve address.
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BoredStakervip
· 01-06 21:41
That's right, but the protection fund is just for psychological reassurance. When something really happens, how much can it compensate is still a matter of two opinions.
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