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There's not much BNB volume outside of Binance: https://coinmarketcap.com/currencies/bnb/markets/ https://coinmarketcap.com/currencies/bnb/markets/ They could

There's not much BNB volume outside of Binance: https://coinmarketcap.com/currencies/bnb/markets/ https://coinmarketcap.com/currencies/bnb/markets/ They could defend the price pretty easily by rigging the price on their exchange by printing BUSD to buy BNB. I will be shocked if we don't find proof they've done this in the past. You can do this w/o screwing customers. Let's assume that some percentage of BUSD is legit (likely a lot of it is). This means BUSD has some value. Let's say everytime someone converts real money to BUSD - Binance spends 100% of treasuries and then an additional 10% to buy BNB. They can keep that 10% in their own wallet - and if the value of BNB someone goes to $0 with them playing this game - they can just wipe that account out. They still have all the treasuries to pay their real customers. However, if you're doing fraud - you're probably doing a lot more of it than this... So you probably won't be able to pay out your customers, because you probably blew all their money on coke and hookers like FTX and every other crypto company so far.

matthewdgreen 4y ago
Actual BUSD is issued on Ethereum by Paxos, which is a separate US company that is licensed and regulated by NYDFS. I think it’s unlikely that any of this issuance is fraudulent. Binance then maintains a “pegged BUSD” token on the BNB chain (and other chains.) This is supposed to be backed “1 to 1” by Real-BUSD held in a Binance wallet on chain. They could break this peg at any instant they chose, but it would be visible. I did the math a few days ago over here [1] and it checked out. I’m posting this not to say the situation isn’t risky, just that it seems risky in a highly-transparent way - ie, I can’t see how they would manufacture BUSD without someone noticing. Maybe there’s a loophole I don’t see. [1] https://news.ycombinator.com/item?id=33976228 https://news.ycombinator.com/item?id=33976228

matthewdgreen 4y ago

Actual BUSD is issued on Ethereum by Paxos, which is a separate US company that is licensed and regulated by NYDFS. I think it’s unlikely that any of this issuance is fraudulent. Binance then maintains a “pegged BUSD” token on the BNB chain (and other chains.) This is supposed to be backed “1 to 1” by Real-BUSD held in a Binance wallet on chain. They could break this peg at any instant they chose, but it would be visible. I did the math a few days ago over here [1] and it checked out. I’m posting this not to say the situation isn’t risky, just that it seems risky in a highly-transparent way - ie, I can’t see how they would manufacture BUSD without someone noticing. Maybe there’s a loophole I don’t see. [1] https://news.ycombinator.com/item?id=33976228 https://news.ycombinator.com/item?id=33976228