[jefb]

Sure looks like a bank run. I'll set the line on an official entry here https://en.wikipedia.org/wiki/List_of_bank_runs at 4.5 days.

[criddell]

Bank run doesn't seem like the correct term since the exchanges aren't banks.

[hn_throwaway_99]

It's the same dynamics, though, and "bank run" is the historical term used for these dynamics, i.e. institution takes depositors funds, institution loans out funds to other parties (the difference in the crypto case is that it appears this was done illegally, while in banking it's the underpinning for our financial system), and then there is a crisis of confidence where people run to take their money out, with the fear that you don't want to be last in line when the run starts.

[chasd00]

> since the exchanges aren't banks

These aren't anything though, they're made up by the founders. They don't behave like any typical financial institution. These things are just implementations of functionality, the fact that they are trusted with large amounts of money by random people on the internet is really good marketing and promises of riches.

[halfmatthalfcat]

But they've been acting like them, leveraging reserves into even riskier coins.

[ktta]

Well maybe we should find a new term, because atleast in the US, bank runs on actual banks aren't possible anymore due to the fed mandated reserve requirement being 0% and banks being able to print new $

These events are the closest we can get to bank runs today

[bandrami]

Ironically historical bank runs were mostly on thrifts or savings & loans, which also aren’t banks.