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It doesn't prove anything. They could have a $70b in total assets but $140b in liabilities. We don't know. They would still be able to handle $2B fairly easily
by senttoschool 4y ago
It doesn't prove anything.
They could have a $70b in total assets but $140b in liabilities. We don't know. They would still be able to handle $2B fairly easily.
But the fact that they paused USDC withdrawal means they're not backed 1:1 like they claimed to be.
- LatteLazy 4y agoNothing is guaranteed (it amazes me we don't have some exchange offering actual signed off proof of at least main reserves). That said, withdrawals have resumed and given Binances policy of treating USDC USDT and BUSD interchangeably they physically cannot maintain reserves for the TOTAL liability in EACH coin...
- redox99 4y agoThey treat all the big stablecoins as the same (you own "dollars" and you can withdraw using any stablecoin you like). So logically there isn't a a defined amount of USDC they should have.
- senttoschool 4y agoThey shouldn't treat stablecoins the same. Any one of them can collapse to $0. And why do they have to even swap what the customer deposited? Doing something they wouldn't want to tell customers?
- LatteLazy 4y agoWhether they should or not doesn't really matter, they do and they're quite up front about it. If you use Binance you know what you signed up for. There is no dishonesty there. The advantage here is that it significantly improves liquidity. Instead of having (at least) three different markets (one each for BUSD USDT and USDC) you just have 1...