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I'm really skeptical of Binance, whilst I would never accuse them of anything specific, I have no proof. Their structure, governance and business model combined

I'm really skeptical of Binance, whilst I would never accuse them of anything specific, I have no proof. Their structure, governance and business model combined with their refusal to meet basic regulatory requirements makes me feel uneasy.

tppiotrowski 4y ago
All day I've been seeing reserve audit posts from all the crypto companies. To me this also screams "Please don't make a run on us or we're screwed"
- Scoundreller 4y ago
  Proof of assets is only one half of the solvency equation though. What are the liabilities and who are they to?
  - mikeyouse 4y ago
    Even the assets are questionable — as Tether’s attestation language change shows. They value their assets at what they’re worth “in normal market conditions” which is a flashing red light for bank run vulnerability.
  - EVa5I7bHFq9mnYK 4y ago
    Exchange is pretty simple business. Customers deposit coins and fiat, trade between them and pay you commissions. If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. This guy took customer coins to gamble, and lost. Story as old as Romeo and Julia.
    - vkou 4y ago
      > If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. If you don't send any of those coins out, there are no profits for the exchange operator, either. Look at how Coinbase does everything more-or-less by the book, and barely makes money. Trading fees just don't cut it. Yet, some fly-by-night exchange incorporated in the Bahamas is offering wild signup bonuses and lower fees and yield that would make Scrooge McDuck blush.
      - EVa5I7bHFq9mnYK 4y ago
        Yeah, those trading fees won't support billion dollar IPOs .. investors need to see clear world domination path.
- bananapub 4y ago
  where are you seeing any actual audits? it looks like the usual nonsense of "here's some bank account balances", with no explanation of what liabilities they hold, or how much related party loan crime they have on their books.
pavlov 4y ago
Binance is effectively saying “I’m not going to tell you where I am but you should let me manage your money.” It takes a special kind of gullibility to accept that, but in the crypto world left has been right and black white for a very long time. Binance’s US subsidiary is just as safe as FTX.US was, despite their claims otherwise. It will fall along with the other dominos.

tppiotrowski 4y ago

All day I've been seeing reserve audit posts from all the crypto companies. To me this also screams "Please don't make a run on us or we're screwed"

Scoundreller 4y ago
Proof of assets is only one half of the solvency equation though. What are the liabilities and who are they to?
- mikeyouse 4y ago
  Even the assets are questionable — as Tether’s attestation language change shows. They value their assets at what they’re worth “in normal market conditions” which is a flashing red light for bank run vulnerability.
- EVa5I7bHFq9mnYK 4y ago
  Exchange is pretty simple business. Customers deposit coins and fiat, trade between them and pay you commissions. If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. This guy took customer coins to gamble, and lost. Story as old as Romeo and Julia.
  - vkou 4y ago
    > If you don't send any of those coins out, there is no risk, no liquidity crunches, no liabilities whatsoever. If you don't send any of those coins out, there are no profits for the exchange operator, either. Look at how Coinbase does everything more-or-less by the book, and barely makes money. Trading fees just don't cut it. Yet, some fly-by-night exchange incorporated in the Bahamas is offering wild signup bonuses and lower fees and yield that would make Scrooge McDuck blush.
    - EVa5I7bHFq9mnYK 4y ago
      Yeah, those trading fees won't support billion dollar IPOs .. investors need to see clear world domination path.
bananapub 4y ago
where are you seeing any actual audits? it looks like the usual nonsense of "here's some bank account balances", with no explanation of what liabilities they hold, or how much related party loan crime they have on their books.

pavlov 4y ago

Binance is effectively saying “I’m not going to tell you where I am but you should let me manage your money.” It takes a special kind of gullibility to accept that, but in the crypto world left has been right and black white for a very long time. Binance’s US subsidiary is just as safe as FTX.US was, despite their claims otherwise. It will fall along with the other dominos.