And you don't have to. Best always to hold your own coins yourself if you have that possibility, or use a custodian you trust.
That's the point. A lot of "trustworthy" crypto custodians have turned out to be… not.
“it’s fine, don’t worry about withdrawing and holding your coins yourself, your deposits are safe”
It appears that you actually agree with me that they may not be.
I assume most traders on ftx only put enough capital on the exchange to keep their positions open in the short term.
So the intangible value of ftx may well exceed the value of clients assets by a significant margin. Then ftx may well be able to issue new shares should it experience a liquidity crunch.
Are you sure? I come bearing no data at all, but it seems everything I listen to or watch is sponsored by FTX. Didn't they also go huge during Superbowl? I would think FTX is one of the largest marketing spenders in crypto purely based on optics (which, again, may be completely off).
We only have to look at the other crypto firms that have gone bust to know this space is rife with problems in that area - lies about FDIC protection, cryptocurrency and tokens considered part of company assets and subject to creditor claims, rather than customer deposits etc.
I wouldn’t like to rely on that “should”.