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Binance holds $17.6B worth of USDT and $21.7B of its own stablecoin BUSD. So it would be an ugly picture for them if Tether depegged.
by zone411 4y ago
Binance holds $17.6B worth of USDT and $21.7B of its own stablecoin BUSD. So it would be an ugly picture for them if Tether depegged.
- pjc50 4y ago> $21.7B of its own stablecoin BUSD You can't hold your own coin as an asset! This is what blew up FTX.
- capableweb 4y agoFTX blew up because they used their own token (FTT) as a collateral, not because they were simple holding FTT. Binance doesn't use BUSD as a collateral, but of course they have a supply of their own token.
- belltaco 4y ago>but of course they have a supply of their own token I don't get what's the point of holding your own stable coin except to potentially double the money they have? Lets say they have $100M in cash(from wherever). Now they print 100M BUSD with the earlier $100M backing it up. Now they have $200M that they can borrow against?
- zzleeper 4y agoImagine firms having their own stocks in their books (not for options grants but for themselves). That's complete insanity, but in crypto is just a random Thursday...
- machina_ex_deus 4y agoWait, 25% of all tether is held by binance? That's a lot. How much is held by other players like bitfinex? Does the bank run need to involve a bank run on exchanges to crash USDT?