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You have zero visibility into the operations of traditional private businesses. With Binance, you can at least view their wallet balances, in the 10s of billion

You have zero visibility into the operations of traditional private businesses. With Binance, you can at least view their wallet balances, in the 10s of billions. You can also estimate their annual revenues. I would recommend doing both. You may find it illuminating. Really, we should all try similar research before commenting on crypto. It would make for much more intelligent discussions. And I don’t mean to pick on you. But too often I read comments here like: “I don’t know much about crypto, but I’m confident that … (insert choice assertion)”.

MuffinFlavored 4y ago
I have zero visibility into the 500 companies in the S&P?
- ShivShankaran 4y ago
  [dead]
- alvah 4y ago
  I think that's why parent says "private businesses", as opposed to public companies.
deleted 4y ago
[deleted]
trog 4y ago
> You have zero visibility into the operations of traditional private businesses. If you need visibility into a private business for commercial reasons before doing business with them, there are ways to do it, including using auditors in the same way Binance did [before their auditors abandoned them for reasons]. Companies that engage private companies do this kind of thing all the time as part of due diligence (e.g. engaging a vendor on a critical project & ensuring they're going to be able to deliver). > With Binance, you can at least view their wallet balances, in the 10s of billions. I mean, you're describing the problem! Their wallet balances are irrelevant - it's their bank balances that we're interested in. I can create a wallet with any arbitrary cryptoasset of my own invention & put "10s of billions" of coins in there and claim they're backed 1:1 with some real currency. Until I can provide reliable evidence that I actually have the currency, it would be insane to believe me, right? And this is the situation Binance is in - the state of their actual real-world finances is, and has been for as long as I can remember, questionable. (Arguably, I'd say it's worse now that Mazars have dropped them!) It's neat they've managed to be liquid for the last few months during this latest crytopocalypse. But I stand by my first comment - they'll have the appearance of being completely fine, right up until the point that they're not. Like every single other exchange. > And I don’t mean to pick on you. None taken. I described myself as a 'mere tourist' because I hold no cryptoassets (except for some Stellar I got more or less accidentally in the Keybase drop), but I have been following the space since the release of the Bitcoin whitepaper.
- eaurouge 4y ago
  > I mean, you're describing the problem! Their wallet balances are irrelevant - it's their bank balances that we're interested in. No one holds real world assets on Binance. Why would Binance's bank balance be more relevant than the crypto holdings in their wallets? > I can create a wallet with any arbitrary cryptoasset of my own invention & put "10s of billions" of coins in there and claim they're backed 1:1 with some real currency. > Until I can provide reliable evidence that I actually have the currency, it would be insane to believe me, right? > And this is the situation Binance is in - the state of their actual real-world finances is, and has been for as long as I can remember, questionable. (Arguably, I'd say it's worse now that Mazars have dropped them!) You keep making these factually incorrect statements, speaking from a position of ignorance yet asserting them as fact. None of your statements here represent the situation with Binance. Here, I'll help you get started on some research: https://twitter.com/Dynamo_Patrick/status/1602791723192786944 https://twitter.com/Dynamo_Patrick/status/160279172319278694... Please do some basic research next time. Then hopefully we can have intelligent and intellectually honest discussions on crypto here on HN.

MuffinFlavored 4y ago

I have zero visibility into the 500 companies in the S&P?

ShivShankaran 4y ago
[dead]
alvah 4y ago
I think that's why parent says "private businesses", as opposed to public companies.

deleted 4y ago

[deleted]

trog 4y ago

> You have zero visibility into the operations of traditional private businesses. If you need visibility into a private business for commercial reasons before doing business with them, there are ways to do it, including using auditors in the same way Binance did [before their auditors abandoned them for reasons]. Companies that engage private companies do this kind of thing all the time as part of due diligence (e.g. engaging a vendor on a critical project & ensuring they're going to be able to deliver). > With Binance, you can at least view their wallet balances, in the 10s of billions. I mean, you're describing the problem! Their wallet balances are irrelevant - it's their bank balances that we're interested in. I can create a wallet with any arbitrary cryptoasset of my own invention & put "10s of billions" of coins in there and claim they're backed 1:1 with some real currency. Until I can provide reliable evidence that I actually have the currency, it would be insane to believe me, right? And this is the situation Binance is in - the state of their actual real-world finances is, and has been for as long as I can remember, questionable. (Arguably, I'd say it's worse now that Mazars have dropped them!) It's neat they've managed to be liquid for the last few months during this latest crytopocalypse. But I stand by my first comment - they'll have the appearance of being completely fine, right up until the point that they're not. Like every single other exchange. > And I don’t mean to pick on you. None taken. I described myself as a 'mere tourist' because I hold no cryptoassets (except for some Stellar I got more or less accidentally in the Keybase drop), but I have been following the space since the release of the Bitcoin whitepaper.

eaurouge 4y ago
> I mean, you're describing the problem! Their wallet balances are irrelevant - it's their bank balances that we're interested in. No one holds real world assets on Binance. Why would Binance's bank balance be more relevant than the crypto holdings in their wallets? > I can create a wallet with any arbitrary cryptoasset of my own invention & put "10s of billions" of coins in there and claim they're backed 1:1 with some real currency. > Until I can provide reliable evidence that I actually have the currency, it would be insane to believe me, right? > And this is the situation Binance is in - the state of their actual real-world finances is, and has been for as long as I can remember, questionable. (Arguably, I'd say it's worse now that Mazars have dropped them!) You keep making these factually incorrect statements, speaking from a position of ignorance yet asserting them as fact. None of your statements here represent the situation with Binance. Here, I'll help you get started on some research: https://twitter.com/Dynamo_Patrick/status/1602791723192786944 https://twitter.com/Dynamo_Patrick/status/160279172319278694... Please do some basic research next time. Then hopefully we can have intelligent and intellectually honest discussions on crypto here on HN.