3 ms·

They are not a custody service, they are an exchange. They are not obliged to hold USDC, if all customers have their assets in BUSD due to the conversions that

They are not a custody service, they are an exchange. They are not obliged to hold USDC, if all customers have their assets in BUSD due to the conversions that happened. Are you expecting Binance to have 1:1 BUSD on hand, in addition to holding the same amount in USDC as well (so 2x the amount of funds deposited by the customers)? Nobody said BUSD == USDC. But comparing it to UST (an algorithmic stablecoin nonetheless) is, at best, misleading.

nailer 4y ago
> They are not a custody service, they are an exchange. Interesting. Because a lot of people think they're a custody service and use Binance as such. > They are not obliged to hold USDC, if all customers have their assets in BUSD due to the conversions that happened. What? Someone trusted Binance to store USDC. The conversions should not have happened. > Are you expecting Binance to have 1:1 BUSD on hand, in addition to holding the same amount in USDC as well No. Nobody is expecting that. You're the only person that mentioned it.
- crypt1d 4y ago
  > Interesting. Because a lot of people think they're an exchange and use BInance as such. ...that's what I said? > What? Someone trusted Binance to store USDC. The conversions should not have happened. Conversions were announced timely. See https://www.binance.com/en/support/faq/what-is-busd-auto-conversion-and-how-to-deposit-and-withdraw-usd-stablecoins-on-binance-7a2571c63d97459ab4e44a8dd01cf7e8 https://www.binance.com/en/support/faq/what-is-busd-auto-con... > No. Nobody is expecting that. You're the only person that mentioned it. Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts, even when most/all USDC was converted to BUSD.
  - nailer 4y ago
    Sorry I typed too quickly. People can and do expect Binance to be /custodians/. > Conversions were announced timely. Yes. Without consent of customers, or even any confirmation from customers that they'd read of and were aware of their coins being swapped for a different currency backed by a different organisation. > Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts No. The logical conclusion of people expecting Binance to hold full USDC deposit amounts is a 1:1 USDC holding, not to have a second BUSD copy of every coin. This is a bizarre straw man.
    - crypt1d 4y ago
      I guess we'll have to agree to disagree then. If customers didn't want their USDC deposits converted, they shouldn't have used Binance. Its not a public service company. Same goes for your expectations of custody, they never claimed to be one. Conversions are even announced when you go to deposit USDC: "Please note that your USDC Deposit will be auto-converted to BUSD at a 1:1 Ratio. Please refer to announcement details. https://www.binance.com/en/support/announcement/e62f703604a94538a1f1bc803b2d579f https://www.binance.com/en/support/announcement/e62f703604a9..." I don't see how your point holds, besides "customer expected X, but got Y" - but this is because customer is misinformed, not because Binance has an obligation to store USDC 1:1 (in this case).
      - nailer 4y ago
        Nobody said Binance was a public service company. This is another bizarre straw man. > never claimed to be one. Binance say they are a custodian on their own website. > customer expected X, but got Y Yes. Misleading people for financial gain is fraud. > this is because customer is misinformed No customer holding USDC in Binance knew their funds would be replaced before Binance replaced their funds.

nailer 4y ago

> They are not a custody service, they are an exchange. Interesting. Because a lot of people think they're a custody service and use Binance as such. > They are not obliged to hold USDC, if all customers have their assets in BUSD due to the conversions that happened. What? Someone trusted Binance to store USDC. The conversions should not have happened. > Are you expecting Binance to have 1:1 BUSD on hand, in addition to holding the same amount in USDC as well No. Nobody is expecting that. You're the only person that mentioned it.

crypt1d 4y ago
> Interesting. Because a lot of people think they're an exchange and use BInance as such. ...that's what I said? > What? Someone trusted Binance to store USDC. The conversions should not have happened. Conversions were announced timely. See https://www.binance.com/en/support/faq/what-is-busd-auto-conversion-and-how-to-deposit-and-withdraw-usd-stablecoins-on-binance-7a2571c63d97459ab4e44a8dd01cf7e8 https://www.binance.com/en/support/faq/what-is-busd-auto-con... > No. Nobody is expecting that. You're the only person that mentioned it. Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts, even when most/all USDC was converted to BUSD.
- nailer 4y ago
  Sorry I typed too quickly. People can and do expect Binance to be /custodians/. > Conversions were announced timely. Yes. Without consent of customers, or even any confirmation from customers that they'd read of and were aware of their coins being swapped for a different currency backed by a different organisation. > Its the logical conclusion of people expecting Binance to hold full USDC deposit amounts No. The logical conclusion of people expecting Binance to hold full USDC deposit amounts is a 1:1 USDC holding, not to have a second BUSD copy of every coin. This is a bizarre straw man.
  - crypt1d 4y ago
    I guess we'll have to agree to disagree then. If customers didn't want their USDC deposits converted, they shouldn't have used Binance. Its not a public service company. Same goes for your expectations of custody, they never claimed to be one. Conversions are even announced when you go to deposit USDC: "Please note that your USDC Deposit will be auto-converted to BUSD at a 1:1 Ratio. Please refer to announcement details. https://www.binance.com/en/support/announcement/e62f703604a94538a1f1bc803b2d579f https://www.binance.com/en/support/announcement/e62f703604a9..." I don't see how your point holds, besides "customer expected X, but got Y" - but this is because customer is misinformed, not because Binance has an obligation to store USDC 1:1 (in this case).
    - nailer 4y ago
      Nobody said Binance was a public service company. This is another bizarre straw man. > never claimed to be one. Binance say they are a custodian on their own website. > customer expected X, but got Y Yes. Misleading people for financial gain is fraud. > this is because customer is misinformed No customer holding USDC in Binance knew their funds would be replaced before Binance replaced their funds.