Replying to ede3d957...

Fractional reserves were reinvented for Monero by Binance in 2019, long before people were concerned with CEX going fractional on Bitcoin.

People assumed it's impossible to go fractional on crypto. But that were early assumptions before gigantic custodians took over the market.

I am sure you'll find plenty of material if you research for "fractional reserves Monero"
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Rich Nost 1y ago

Monero having a fractional reserve does not exclude other shitcoins from having fractional reserves, and offers no evidence of state actor manipulation.

Also, TIL that even monero people believe the supply ambiguity can lead to price manipulation.

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ede3d957... 1y ago

Monero (thanks to its untraceability) was a primary target for fractional reserves without being easily discovered.

It took the community 2 years to find first irregularities. It took another year to organise a "Monero run" on exchanges to proof the theory that most big exchanges were fractional. It's a fascinating read.

Shortly after the "Monero run" exchanges started to delist Monero which escalated in 2024 when almost all exchanges delisted it leading to a liquidity drain.

I challenge you to do a thought exercise.

What would happen to BTC price if all major custodians would go to only 10% fractional?

What would happen to BTC price if almost all CEX delisted BTC within one year?