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> while holding the crypto 1:1.

You can only do that if you are holding exclusivly onto one asset. The relative values of different tokens change over time. So if you want 1:1, you need to have a robust mechanism for doing that.

But you won't want to because that'll burn through transaction fees for no real gain.

> FTX on its own could be a nice profitable business

That requires fees, and given the number of exchanges that do it for free, so long as you keep your wallet with them, its not going to make you money.

Sure you can do market making, or arbitrage, but that's still risky and you don't make that much money doing it. <0.1% on each transaction.



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