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The story is the same for all these other giants of crypto. Binance, Tether, Bitfinex are all basing their purported asset value on holdings of multiple worthl

The story is the same for all these other giants of crypto. Binance, Tether, Bitfinex are all basing their purported asset value on holdings of multiple worthless currencies, many of which they mint and price themselves.

bboygravity 4y ago
Interesting to see that you and many others think that "the real financial world" works significantly differently. Countries, (central) banks, family funds and hedge funds are about to fail (or are already failing) in a very similar way but on a much much grander scale.
- grey-area 4y ago
  Everyone’s a con-artist is neither accurate nor useful. Some things are clearly a con (the operations listed above in my view), most things are not.
- efficax 4y ago
  the real financial world really does work differently. even bizarre instruments like credit default swaps are rooted in an asset of real value (homes). stocks, bonds, real estate, these are all connected to things that have value or produce value, corporations, governments, land. crypto tokens are pure speculative assets that have value only so long as you can get suckers to buy them. they’re effectively really incredible counterfeits, that will be instantly worthless the moment the moment enough people realize that the sucker pool has run dry
lupire 4y ago
Is Binance really in that group? CZ alleged that FTX tried to crash Binance's market a few years ago like Binance did you FTX last week, but failed because they actually hold reserves.
- grey-area 4y ago
  Yes Binance seem like a scam, and even if totally legit their net worth is in currencies which have fallen dramatically and will keep falling. They haven’t had a proper audit, so you just have to trust them. https://www.bloomberg.com/news/articles/2022-11-11/binance-data-shows-40-of-major-holdings-are-busd-bnb https://www.bloomberg.com/news/articles/2022-11-11/binance-d...

bboygravity 4y ago

Interesting to see that you and many others think that "the real financial world" works significantly differently. Countries, (central) banks, family funds and hedge funds are about to fail (or are already failing) in a very similar way but on a much much grander scale.

grey-area 4y ago
Everyone’s a con-artist is neither accurate nor useful. Some things are clearly a con (the operations listed above in my view), most things are not.
efficax 4y ago
the real financial world really does work differently. even bizarre instruments like credit default swaps are rooted in an asset of real value (homes). stocks, bonds, real estate, these are all connected to things that have value or produce value, corporations, governments, land. crypto tokens are pure speculative assets that have value only so long as you can get suckers to buy them. they’re effectively really incredible counterfeits, that will be instantly worthless the moment the moment enough people realize that the sucker pool has run dry

lupire 4y ago

Is Binance really in that group? CZ alleged that FTX tried to crash Binance's market a few years ago like Binance did you FTX last week, but failed because they actually hold reserves.

grey-area 4y ago
Yes Binance seem like a scam, and even if totally legit their net worth is in currencies which have fallen dramatically and will keep falling. They haven’t had a proper audit, so you just have to trust them. https://www.bloomberg.com/news/articles/2022-11-11/binance-data-shows-40-of-major-holdings-are-busd-bnb https://www.bloomberg.com/news/articles/2022-11-11/binance-d...