True believers may want to dispute her headline (“The entire crypto ecosystem is a ponzi”) but this post by Frances Coppola I think clearly illustrates the reasons why the term “deposit” should never be applied to anything associated with a crypto application.
Tony – From the Outside
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Author: From the Outside
After working in the Australian banking system for close to four decades, I am taking some time out to write and reflect on what I have learned. My primary area of expertise is bank capital management but this blog aims to offer a bank insider's outside perspective on banking, capital, economics, finance and risk.
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From the outside 
This article is spot on.
Cryptocurrencies failed all promises, and one wonders, if these were ever meant serious.
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That’s quite funny Tony, you meant Frances Coppola but you said Sophia (Sofia) Coppola, Francis Ford’s director daughter!
Andrew Baume ________________________________
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I thought I fixed the typo – but yes
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The serious point is that using the term deposit to describe anything associated with crypto has a very high probability of ending in tears. Most people just don’t appreciate how much goes into making a bank deposit what it is
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I could not agree more. I think you have written about the word “bank” as well. The concept of deposit cannot be used by non ADIs and the whole murky world of debentures 30 years ago had more than a few antecedents of the crypto “safe but high yield” selling slogans.
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https://from-the-outside.com/primers/bank-deposit-protection/
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