Are Exchanges Finally Thinking Ahead or Just Saving Face?

Saw something interesting the other day, an exchange apparently set up a $150M reserve to cover unexpected platform issues. They’re calling it a Shield Fund or something like that. Not a huge deal on the surface, but it did make me pause for a second.

I mean, most platforms wait until things go wrong before reacting. So yeah, it’s at least… different? I’m not saying it solves everything, but with the number of protocol hacks lately, it kind of makes sense for exchanges to start thinking ahead.


I’m still not sure if stuff like this will ever be enough when things really hit the fan, but it’s at least a shift from the usual “deal with it later” vibe we see too often in crypto.


Do you guys think this is safe enough? just thinking out loud if other exchanges are starting to do similar things or if this is just a one-off.

To make money more effectively.

Sounds like an effective use for when wallets get cracked or anything. Not sure what else the reserve is for?
What exchange made this decision? To make a shield fund

If the past has proven anything it’s that there’s no such thing as a CEX that’s too big to fail. Having reserves defintely helps build trust but I’m personally never leaving substantial amounts on any platform for a long amount of time. Deposit, swap, withdraw.