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Binance has serious legal issues (governmental investigations) and isn't based out of any jurisdiction. A Binance failure would have consequences that are very

Binance has serious legal issues (governmental investigations) and isn't based out of any jurisdiction. A Binance failure would have consequences that are very hard to predict

idiotsecant 4y ago
I'm not sure that binance has a reason to exist in the current world where defi is a thing. Things like Coinbase etc are your place to go if you want a fiat to crypto on-ramp or off-ramp or if you want a reasonably safe place to park crypto if you don't want to own it yourself. There are innumerable decentralized exchanges where a person can be absolutely (for some definition of the word) sure that the exchange won't be shutting down and taking your money before you're done doing your transaction. There are L2 DEX even that are approximately the same cost and same level of inconvenience as something like Binance. Why does it matter if Binance goes away? I'm not sure if it does!
- deleted 4y ago
  [deleted]
- searchableguy 4y ago
  Binance is the biggest exchange by a huge margin. It dwarfs coinbase and FTX. They are also huge investors in crypto and any winding up will have an impact on a significant number of companies. They control a significant portion of stablecoin, defi, and chain market too. Their impact would be felt outside the crypto space if they ever go down.
  - rhaway84773 4y ago
    All the more reason for them to go down sooner rather than later because they’re eventually gonna go down, so better now where they will have less impact outside the crypto world than they would a few months or years later.
- acjohnson55 4y ago
  And yet, here they are, processing a huge amount of volume. Their customers obviously do think they have a reason for existing.
TomSwirly 4y ago
If it's going to happen, better sooner than later.
- eftychis 4y ago
  I mean we are wishing here for an economic catastrophe. What am I missing?
  - pasttense01 4y ago
    It's not an economic catastrophe: currently the real economy is not strongly affected by what happens in the crypto-economy--and we need to keep it that way!
  - senttoschool 4y ago
    To protect people from getting scam and to put money in more efficient and productive industries.
from 4y ago
Binance reminds me of https://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International https://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_In... but I don't think they're stealing customer money. It is amazing that they have evaded American regulators so long. I think one day they are going to disable trading in dollars.
- FormerBandmate 4y ago
  Honestly, I think FTX is biting off way more than they can chew. They’re really well-connected for the crypto industry, knifing them will definitely get the attention of regulators and that could blow up the entire thing. Their only real asset is being perceived as too big to fail but they’re not exactly acting in ways that endears them to the federal government
pjc50 4y ago
Unless Mr CZ is on the moon, he very much is based out of some jurisdiction. It just might not be extraditable to the US.
- FormerBandmate 4y ago
  He keeps moving around. I think he’s based out of Dubai now, but there’s been seven countries or so over the past 5 years
- ackbar03 4y ago
  Maybe that's why he's been so supportive of musk in his Twitter buyout

Binance has serious legal issues (governmental investigations) and isn't based out of any jurisdiction. A Binance failure would have consequences that are very hard to predict

idiotsecant 4y ago

I'm not sure that binance has a reason to exist in the current world where defi is a thing. Things like Coinbase etc are your place to go if you want a fiat to crypto on-ramp or off-ramp or if you want a reasonably safe place to park crypto if you don't want to own it yourself. There are innumerable decentralized exchanges where a person can be absolutely (for some definition of the word) sure that the exchange won't be shutting down and taking your money before you're done doing your transaction. There are L2 DEX even that are approximately the same cost and same level of inconvenience as something like Binance. Why does it matter if Binance goes away? I'm not sure if it does!

deleted 4y ago
[deleted]
searchableguy 4y ago
Binance is the biggest exchange by a huge margin. It dwarfs coinbase and FTX. They are also huge investors in crypto and any winding up will have an impact on a significant number of companies. They control a significant portion of stablecoin, defi, and chain market too. Their impact would be felt outside the crypto space if they ever go down.
- rhaway84773 4y ago
  All the more reason for them to go down sooner rather than later because they’re eventually gonna go down, so better now where they will have less impact outside the crypto world than they would a few months or years later.
acjohnson55 4y ago
And yet, here they are, processing a huge amount of volume. Their customers obviously do think they have a reason for existing.

TomSwirly 4y ago

If it's going to happen, better sooner than later.

eftychis 4y ago
I mean we are wishing here for an economic catastrophe. What am I missing?
- pasttense01 4y ago
  It's not an economic catastrophe: currently the real economy is not strongly affected by what happens in the crypto-economy--and we need to keep it that way!
- senttoschool 4y ago
  To protect people from getting scam and to put money in more efficient and productive industries.

from 4y ago

Binance reminds me of https://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International https://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_In... but I don't think they're stealing customer money. It is amazing that they have evaded American regulators so long. I think one day they are going to disable trading in dollars.

FormerBandmate 4y ago
Honestly, I think FTX is biting off way more than they can chew. They’re really well-connected for the crypto industry, knifing them will definitely get the attention of regulators and that could blow up the entire thing. Their only real asset is being perceived as too big to fail but they’re not exactly acting in ways that endears them to the federal government

pjc50 4y ago

Unless Mr CZ is on the moon, he very much is based out of some jurisdiction. It just might not be extraditable to the US.

FormerBandmate 4y ago
He keeps moving around. I think he’s based out of Dubai now, but there’s been seven countries or so over the past 5 years
ackbar03 4y ago
Maybe that's why he's been so supportive of musk in his Twitter buyout