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As far as I know, Binance is doing just fine (for now). The bailout was an attempt to take over a large competitor for pennies on the dollar.
by noelsusman 4y ago
As far as I know, Binance is doing just fine (for now). The bailout was an attempt to take over a large competitor for pennies on the dollar.
- paulusthe 4y agoBinance is almost certainly facing the same situation as FTX, just without the bank run. They're leveraged to the teeth with tether, which they similarly treat as a crypto leverage flywheel. Binance just has first mover advantage; as a result of inventing this "my coin can just be printed forever" crypto exchange model, they have more use and $$ which gives them a better cushion. But it's still only a cushion.
- partiallypro 4y agoAs far as everyone knew FTX was doing fine until a few days ago. Binance is inevitably going to follow a similar path. If you're using a currency/holding as leverage that can go to $0 overnight, you're far from in a good position.